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<h3>             Minimizing Fraudulent Feeds SP holders elect individuals to publish price feeds. These elected individuals are presumably trusted by those who have a vested interest in the quality of the feed. By paying those who are elected, Steem creates market competition to earn the right to produce feeds. The more the feed producers are paid the more they have to lose by publishing false information. Given a set of trusted and elected feed producers, the actual price used for conversions can be derived as the median of the feeds. </h3>
<h3>              In this way if any minority of individual feed producers produce outliers they have minimal impact on the actual median while still having the ability impact their reputation. Even if all feed producers are honest, it is possible for the majority of feed producers to be impacted by events beyond their control. The Steem network is designed to tolerate 10 of 44 short-term corruption of the median price feed while the community actively works to correct the issue. One example of an issue that may take some time to correct is short-term market manipulation. Market manipulation is difficult and expensive to maintain for long periods of time. </h3>
<h3>            Another example would be the failure of a centralized exchange or the corruption of the data published by the exchange. Steem factors out short-term price fluctuations by using the median price over a period of one week. The median published feed is sampled every hour on the hour. As long as the price feed corruption lasts for less than half the moving median time window it will have minimal impact on the conversion price. In the event the feed does get corrupted, network participants will have an opportunity to vote-out corrupt feed producers before the corrupted feed can impact the actual conversion price. Perhaps more importantly, it gives feed producers an opportunity to detect and correct issues before their feeds start impacting the price. With a one week window, community members have three and a half days to respond to any issues that come up. </h3>