RE: Incentive trees and what we can learn from Bitconnect
You haven't read what I said, I never said POS was an innovation they created, I am saying they taken advantage of the concept to further their business model....
If you are referring to Bitconnect using BTC as payment then you lack the mechanics of how it works, it pays the USD BCC value, the only obligation of BTC in the contract is as an entry as with any cryptocurrency.....
There is nothing artificial about it, if Ethereum should incorporate Proof of Stake and lock up their coins in contract it would spark their price as well, if you aren't familiar this is basically the same concept behind Masternodes, its one of the features Dash has benefited from, in essence you can even think of Steem Power in the same light, the more power up the less Steem available and if the demand is great, Steem price would absolutely pump, so it isn't artificial... that how the market works, its the beauty of these varying cryptocurency project the code governing it and the economic model behind it....low supply coins are sensitive to price hikes providing that there is demand... Remember these concepts are ways of securing the blockchain...with regard to the article, the question we can ask, could Steem create an incentive, it used to be offering interest on SBD and the inflation that existed with Steem but participant had to deal with their Steem being lock up for over 2 years... its very lucrative to have a Dash masternodes but if the participant wish to sell then he/ she must forgo the agreement, remember the payment is in DASH at the market rate, so if Dash price continues to drive up, what matter place to be... what these coins are trying to do is give the coins more utility, for example Dash want to the crypto of commerce(used as payment option, that why getting merchants on board is important) when you do that you have another stream of income from transaction fees and the trading volume markets the crypto, so when Bitconnect makes moves to get debit card it shows that these people are making moves....I am trying to be objective as possible... I hope no one flags me but hopefully we better understand with regard to the 60 days we have to see how this plays out, quite frankly cryptocurrency does not really have any legal jurisdiction, what government can do is dictate what is a legal tender of commerce/ trade or not apart from that, there isn't much....base on the government classification whether they consider it currency or security, then we have to think of capital gains and the laws that exist with regard to taxation in that given country where the gains are realized apart from that, there isn't much written in law
Steemit used to have "vesting" which paid interest on Steem Power, Steem Dollars, etc, just for holding. I think of Steem Power as the "vesting wallet". I think of Bitconnect where they figured something out, like for Bitconnect loaning is the equivalent to mining conceptually. In Bitconnect there is the "lending wallet".
If you loan you might get rewarded some variable interest for the day. On Steemit you might get rewarded if you blog or hold Steem Power. On Bitcoin you might get rewarded if you buy an expensive mining rig and you mine.
All of these are the same at the core. Essentially in every case you mine with your dollars. You put money into some smart contract or equipment in the hope that you will take out more than you put in after some fixed period of time. In Steemit or DPOS they called this "vesting". In Bitcoin it's adjusted by the difficulty algorithm and it's Proof of Work.
So in theory I do think it is possible to achieve the goal of a sustainable affiliate marketing protocol on top of Steem SMTs, and I think it is well worth it to implement this after looking not just at the success of Bitconnect but the fact that some of the top bloggers on Steem who brought thousands of people to the site are now doing it for Bitconnect. To get people like that back on the side of Steem requires Steem actually do something to allow the marketers to actually be rewarded for promoting Steem at least at a level good enough to be seen as the safer alternative.
Imagine what good it could do for Steem if people were on Youtube telling people to buy Steem and power up, and if these people earned a commission it could still be worth it.
Excellent point, recently I wrote an article about how Steem and EOS could benefit from the continual mulit-sig Ethereum wallet problems....In it I wrote essentially about the SMT and how it can help push their agenda further....Thinking about it now, Steem itself can launch its own SMT for marketers, where marketers are rewarded base on the amount of volume that they bring in, What do you think....I also think moving forward, once Steem establishes itself and the price of Steem moves above 2.50, they can pegged it against Steem instead of USD as to help restrict the amount SBD in circulation as less would have to be produced because we all agree that crypto prices would continue to trend higher.... The challenges Steem faces is creating an incentive, everyone won't be bloggers, how now can we create an environment that encourages participants, one may say curation rewards but I believe that isn't enough as we can see happening....I am also very concern about the potential effects flagging could have on the SMT if participants for whatever reasons start flagging projects, so lets see how it plays out