Steem was supposed to regulate itself through self governance of upvotes and downvotes. And the community itself was supposed to defend it's interest. Just extremely uneven toked distribution makes this system pointless. As even a 1000 members with 100 steempower is not a match for bigger and misbehaving whales. Also flagging posts does not provide any incentive from economical point of view hence it is being used only by some community initiatives lie @cheetah and @steemcleaners but then again their purpose is different.
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The real problem is that you didn't take three facts into account. The first one is that steemit is actually a society. To self rule a society must have fair, moral and just rules that everyone comprehends so they can also understand.
The second one is the fact that human beings sadly are not ruled by logic or reason and often have no logic or reason for the decisions they make. Ask someone for the logical reason to like chocolate over vanilla. Personal preference has no logic or reason.
The third fact is the fact that the agencies of our world are not in favor of decentralization and so they send their agents into steemit to reek havoc from the inside. This is why all societies have to have those rules I mentioned.
The reason why I am writing to you is because I don't believe there will be a second chance at decentralization. I also believe that my lack of programing ability requires those who have that expertise learn what I know about building societies and act accordingly or steemit is done.
Don't think that my username is an accident. The key is as I have said. Fair, moral and just rules that steemians ratify or the death of steemit. Remember please that I am no prophet and could be wrong, but I think that what you have witnessed in the recent past supports my claim.