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RE: In Bitcoin terms, Steem is revisiting the lows of March of this year and if it was to revert back to the Bitcoin valuation witnessed in June, then Steem could be +$10.36..!!
Oh ok so an SMT will have to be backed by Steem Power? For example if I wanted to start an SMT which had a total reward pool of $100 a day I would need to buy and hold an amount of Steem which could pay out that amount?
This answer is two fold.
To start a token, you would most likely buy STEEM to provide initial value to the token...a form of backing the token up. After a while, the creators of the token might sell the STEEM as the value of their token took hold...or the might not.
Regardless of what they did on the end, you as a token creator would need bandwidth. It really doesnt have to do with compensation. Look at your steemd.com/@username account and you will see bandwidth under your voting power. That is the system. All "fees: are determined by bandwidth. Hence if you had a million people active on your site posting, upcoting, and commenting, then you would need a fair bit of bandwidth, hence STEEM,
I hope that helps to clarify things....
Thanks you gave me an idea of a post.
Ok thanks a lot that certainly helped to clear things up a bit, I really need to look into this in more detail. I will follow you and look out for your post!