Yeah it's a known problem... Still my biggest hope for Steem lays with SMTs, as this could potentially bring forth platforms that work similar to utopian.io (just with different content). The thing is though, that this circle jerking behaviour will only come back at them. Cause without the incentive of new people coming in, Steem will eventually lose its value.
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This exactly! Steem will lose its value if new users aren't welcomed and feel like their hard work goes unnoticed. I hope SMT's will be the first step in changing this.