Personal Worries about the Initial Profit-Centric Trend in Steem

in #dstors6 years ago

Since the bear market has strongly attacked Steem community, many people suddenly has started to say, "A project that has no revenue model at this moment is wrong. Everyone should follow what @steemmonsters is doing right now." And today, I've seen this problem statement posted by @dstors - https://steemit.com/dstors/@dstors/a-profit-vision-for-steemians.

Is the Steem blockchain lagging behind other blockchains in assimilating for-profit enterprises? Yes! Is it too late for Steem to catch up? Definitely NOT! How many for-profit companies currently run on the Steem Blockchain? Prospectively, two: @dStors and @SteemMonsters. Is this good? Unacceptable!

So I want to share my concerns for this trend.

  1. Steem's PoB (Proof of Brain) is born to provide decentralised social platforms. This is why there have been many reward pool based dapps like @dtube, @utopian-io, @steepshot, @steemhunt, etc. And now many people are saying those apps have no business model, so their projects are not right.

  2. Liquid transaction based business model is just one of promising ways to monetise, but it's not a purpose. @steemmonsters is great to have the early rev stream based on swapping the value of collectible assets and liquid currency. However, it's not born to have the biz model. Their core is at the collectible assets and the user experiences from what they can do with those assets. People just pay/invest their money for the value propositions.

  3. There are many social apps that require (enough) traffic first and monetisation (ads) later. This is why so many social apps need a long-time funding without rev stream initially. No any business owners are willing to pay money for not enough traffic buying.

  4. This is my point. The matter is how the dapp can utilise its community force that is attracted by its reward pool. For example, @steemhunt is focusing on gathering as many tech geeks in our platform - so called Geek Capita - so that the product owners can utilise this force for their marketing/product launching. Using reward pool was never been our purpose but just one of the pillars to form the traffic source more quickly/strongly. And I think this is beauty of Steem's PoB.

I am not saying that having an early revenue stream is wrong. If the dapp can have the early BM, of course it's great to have. However, it should NEVER been a purpose of the dapp.

I know many people have concerns about dapps that have no revenue stream at this moment. It's very natural trend especially during the bear market because being survival is highly prioritised. However, they SHOULD NOT all of sudden to compromise their BM to get early monetisation when they are not ready yet. If so, their value propositions would not be much powerful than the centralised platforms (then, your customers have no reason to use your blockchain-powered service).

P.S.: I personally think that the @dstors' problem statement should be revised. I believe that their vision is very promising (so I've delegated some SPs too). But its problem statement cannot contain its great vision.

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You raise a very important point when it comes to timing. Knowing when it is time to monetize is key. Their are stages in a business's development.

I agree with you @project7. Even centralized apps used to run without revenue for years before they started adding adds everywhere.
The question is how to explain the value of Steem to investors outside, who don’t understand yet the value of a decentralized economy and why they should invest. That’s why steemmonsters are brought up so often as a good example (although I don’t care for collectibles and that wouldn’t make me invest).

Well stated... I'll just go back to read that again.

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