Vlog 372: Are you willing to pay for Dapps? + Why SP delegation as a revenue model for businesses doesn't work long term.
The problem with relying on delegation as a revenue model for your business lies in its uncertainty.
The most obvious uncertainty is that it can be taken away at anytime.
Another one is the Steem price. The lower it goes the less income you can generate while you actually need more STEEM to pay for costs because the price went down.
Conclusion: Other revenue streams need to be found if you want to build a reliable business on the Steem blockchain.
It's as simple as that.
I talk about it more in my vlog.
Vlog starts @ 2:00.
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I’m here at Decentralized 2018 in Athens. @oracle-d did a great presentation about how they built their company without an ICO but by use of delegated Steem Power.
Afterward I spoke with them about having a more reliable income stream. They’re onto it big time and are negotiating with BIG companies that want to buy and hold Steem.
Check them out if you haven’t already. They’re doing great things for SP holders!
I never expected to see Steem spoken about here at this awesome conference but BANG!
Yeah I speak to @starkerz on SF3. More businesses on the blockchain I am all for it!
It’s all about the ROD - return on delegation!!
that's exciting to see, thanks for sharing this!
Great to c steemians like u at this event @kus-knee!! Looking forward to tomorrow!!
Sure thing. Congrats again on the best presentation of the day!
cool, great story to hear.... now is the perfect time to get companies to invest in steem, the price is right ! at $6, sure, who the hell would want any ,,, but now, starting to look attractive more major movers, for sure (at least, my best guess)
I'm with you, someone was talking about steem monsters using delegation as a revenue model ... it's like, dudes... we gotta get beyond just delegating to each other, that's cute... but we need real monetization around here... we need developers and content creators producing the real sh%t people want... we just ain't there yet, but yu r right / peace
I rarely read or hear anything about advertising as a form of revenue. What if DTube had ads? I’d hate that but it is a viable revenue stream.
Here I timestamped the video for you, just watch it and get hyped. :)
Thanks, I'll take a look!
I doubt there are enough viewers to make advertising viable at the moment (not sure). Selling some sort of premium feature I would like to see. Something outside the reward pool.
Maybe storing of the videos for a longer time? Trying to think of things.
Watch steemfest's very last presentation. ;) Ads are coming to steem, but not in the way you'd think. Got me really excited about getting ads tbh. :)
Very good points. I have thought about this quite a bit as I have been using musing.io. They have a pretty big delegation sent to them from a couple of different places. If they were to lose that though, I am not sure they would be able to sustain what they have going there. It is really important to make sure you have a sustainable income for the project. Thanks for sharing this.
It is. And I'm glad it's being talked about now.
I think that Steem Monsters has shown what needs to be done to take Steem to the next level and one the things I remembered the most out of Matt's interview is that delegation should be looked at as an incubator, as something that gets you going, that can kickstart your business, but like you also said should never be looked at as the business model itself. That really struck gold with me and is something that will stick with me forever.
Thanks for the vlog!
Yes, delegation can be seen as an incubator indeed. But I believe projects must stand on their own feet after a certain timeframe.
Yep, the way I see it that certain big accounts can sort of be the judge if they are an expert in the field and with a predefined timeframe. So projects are obligated to come up with a good business model.
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When the prices goes down everybody start thinking about options. Once they go up, everyone will chill :)
Nevertheless multiple income stream is a great thing. The thing is that delegation is a very nice tool for startup. And quite easy. Securing other revenues can be challenging.
Making people pay for apps, now then everything is "free" is even more challenging :)
So .... back to the adds :)
You are right, delegations are not enough, not for communities and not for apps. We have to find alternative ways of income to power up our accounts. I'm thinking about putting all the videos we make in @dcooperation in youtube after uploading them to dtube, then we can monitize and use all the earning again to power up. I think currently with this steem price, apps shouldn't think about the earning a lot, but thinking only about powering up their accounts. I understand that there are developers who need to be paid, but also there are people who need to be upvoted and this is the most importnat. I think keeping people here in this hard time is the most importnant. We shouldn't make them panic and we should make them understand that it's crypto and anything can happen here, it can go to $0.5 in one day and jump to $10 in an other. I hope for the best for steem blockchain.
Well I think delegation as investor is a good idea. You believe in a coin you don't want to post but you want to earn revenue. So you search for a company who needs power to run. And delegate for a few years. For companies who want to start it's a great opportunity to get funds together. But of course you need an income you don't have a chain who accepts steem houserent groceries etc. I see delegation as a stock on the stock market. You invest in a company but that company needs to generate income to flourish. So like me I want to create events around steem give prices away but those prices needs pay so you can say ok if you begin a tournament pay 5 euro. That's the same with apps no app is free if you play cash of clans there you can play for free but you have an option to buy extra stuff. YouTube.. You can watch for free but you see advertising you can buy a subscription to get rid of it. Nobody is paying your bill so I would suggest a limited free version do you want more? Pay for it. And yes I voted for blockbrothers a long time ago. 😁 correct me if I'm wrong or someone has another idea.
Another thing I could have had a good life if I hadn't put all my funds in one place. I lost it all so I will devide my funds over several earning models. I learned from that fault but I want to be dedicated to steem I believe in steem but I protect myself from that fault. It is my greatest investment though. I also want to make that dream come true create a place in the heague where you can learn earn crypto and help others with it. I don't know everything of all the dapps just because steemit is one big great forest of information. For me it takes time to get to know everything. But I will also succeed. Why? Because of my dedication. It only takes time.
I am glad someone else has worked this out.
For the past +18 months I have been banging my head against the brick wall trying to get this message out.
While the price of Steem goes up, funding a business model on Steem from delegation is very easy, you can effectively do it with your eyes shut.
You can do it without worrying about where the revenue/ capital comes from.
However, in reverse, on other words when the price of Steem continues to fall, is a whole new ball game and a completely different model.
I have been trying to get this message across and hopefully more people will now look at this as the biggest challenge, especially when it comes to funding promotional activities.
Thanks for sharing the blog.
Stephen
You must be happy with the Steem Monsters project because they have opened this insight for many.
They are attracting other crypto's and fiat and locking up STEEM.
It's clear to see a second revenue model is needed now especially with these prices.
Ya now time steem deligatiion is not profitable.