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Yea, whenever you have these huge friction points it's not a question of if people will drop off, it's how many, and with how rough these are on Steem, if we had the tools to see analytics on this, a 90% dropoff rate wouldn't surprise me.

There are benefits to a daunting learning curve tho. Folks that end up here tend to be fairly intelligent. There's a notable IQ gap between Steem based bloggers and other platforms, IMHO. I can get pretty frustrated on other platforms because of that very thing, and almost like the fact that barrier exists.

Almost.

Also, the best data I've seen on retention has come from @paulag, and the last figure I recall was about 7.5% of users would remain after 1 year.

urgh! That is not a great retention rate. While I can relate to what you are saying about having a more educated userbase, I think that the overall value would certainly be better with more people using the platform. The way it is now this is highly unlikely because it is very difficult to search for content you are interested in using the current categories and what not. I struggle to find things I am interested in because the UX is really quite bad.

I wish I had answers :(

I actually agree regarding our userbase, quite strongly. Communities self organize for various reasons, and we all have room on Steem to coexist to our mutual benefit.