Vlog #102: A concern about SMT's on the STEEM blockchain. **EDIT** Good answers in the comments.
There have been a lot of positive articles about the greatness of SMT's on the Steem blockchain.
I like to mix it up with a concern. It doesn't mean I'm not positive. I was just wondering.
The fact that Steemit has an SMT (STEEM) makes it very unique. People are drawn to that.
Don't forget the STEEM blockchain works perfect and is really fast. That is unique in the crypto space. It's also unique in Media land.
Giving away this uniqueness to other sites will delude that uniqueness pretty fast. STEEM will just be an SMT out of many on the STEEM blockchain. (If the STEEM token is used differently and I missed something, let me know).
Is our community big enough to stand on its own yet (without this uniqueness) and will the STEEM token retain its value?
My first instinct right now is that this SMT idea comes to fast.
I would have like to have seen more focus on building the STEEM community through apps, easy signups, and communities first.
Make the brand STEEM/STEEM blockchain STRONG. And then roll this out.
What do you think?
EDIT: Good answers in the comments.
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I’m still trying to understand it all completely, but from first impressions I don’t believe “branded” SMTs and Steem are mutually exclusive.
I could be wrong on any of this and would welcome clarification, but from what I could glean from the white paper,
In my head I just imagine it akin to taking 100 Steem and chopping it into 10,000 branded SMT tokens worth .01 Steem each. Any value growth in a SMT would still be capital that is entirely “on chain.” Even though it’s in a separately named account of sorts, value hasn’t left the Steem blockchain in any way. If I transfer 100 Steem to another user then my market cap just dropped, while theirs rose. Of course we know Steem lost no value though. SMTs seem to just be an added level of compartmentalization, rather than a loss of value to Steem. Value will flow between SMTs, exchange rates for each will vary from worthless to many multiples of 1 STEEM, but in actuality it’s all just STEEM... “skinned” STEEM!
If these tokens are only liquid by moving through a Steem internal market gateway then they won’t be flooding outside exchanges, and it could even be possible to calculate them all within a bundled Steem system marketcap valuation.
The dynamics and norms that evolve will be interesting to see.
Very interesting! Thanks for your reply. It's becoming more clear.
Some of my concerns are certainly real and yet addressed already by the awesome steem team.. ty
Yes, it's used differently and I think you missed something.
An SMT will be traded through STEEM, so we won't have a bunch of SMTs and STEEM just one of them. We will have STEEM, and then a bunch of SMTs on top of STEEM. Market-wise, this will most likely boost demand for STEEM, as a token.
Also, the SMT generation mechanism is way more complex than just a token issuance on the Ethereum platform. When you launch an SMT, you literally launch a thin layer of Steem-application-processes on top of your content, including your own rewards pool, your own inflation model, your own voting and curation algorithms and your own vesting mechanism.
Hope this helps.
This helps a lot! Thank you so much.
EDIT If you could just clarify. I would be grateful.
2.When the SMT is up and running lets say on REDDIT (REDDIT TOKEN). Will they still need STEEM to make the REDDIT TOKEN work on the STEEM blockchain? or is it separate?
At least that's my understanding from reading the first version of the white paper.
If STEEM becomes the main trading pair for any SMT on the Steem blockchain in the future that would be pretty major.
If they execute this one well, yes, it will be major.
the key point. execution, that's why i think the first video that ned did was really smart asking for people to go through the whitepaper and rip it to bit before they jump in with 2 feet. kinda smart, he needs to be vlogging each week from now on if you ask me even if it's just to give a few minute catchup.
Hehe yeah, find all the flaws, tell me how bad and wrong it is! Cause that's the only way to improve.
Is that the same mechanism like on bts DEX?
amigo #resteemia at your service
got answers for all most all ;) impressive work @exyle, @dragosroua
ReSteemia
'UpVoted ReSteemed Commented'
SMT's would all be funded through ICO's with STEEM. The value of an SMT is therefore derived from STEEM. Any successfull SMT would mean a huge boost to the intrinsic value of STEEM.
At least that's what I thought to understand from it...
According to the white paper it's not just STEEM. If STEEM is needed for ICO's all the time it will be good for the value of it.
But never completely without STEEM:
Oh well, I'm not the expert here, and I certainly don't want to end up in a discussion with you, you've been here since 2016 and have WAY more experience than me. But to me, Ned doesn't seem like the type to do anything that would hurt or diminish the value of STEEM. I think the concerns about diluting Steem's value through SMT's is something that Ned probably has considered a lot.
DISCLAIMER: this is just a humble opinion from a minnow
Thank you so much! (That's why I like discussions, exchange of ideas and thoughts on here.) (EDIT because you edit your comment. Just because I been here longer doesn't mean much. You can always voice your ideas and thoughts with me man.)
Cool! See you at Steemfest?
I will be there!
There is an abundance of conception and misconception around today. I am digesting the white paper in bite size portions. There is a variable within an SMT a "reserve ratio" which is part of Bandwidth Rate Limiting ???... I believe this reserve is STEEM that is frozen in an account. Thus each SMT will require some STEEM held in reserve. This should increase demand for STEEM.
One bite at a time...
Incredible discussion here regarding SMT and what it means for Steem. I've read so much regarding this over the last 24 hours but the dialogue between you and Dragosroua really cleared it up for me. This could be a game changer for Steem in a huge way. I hope Ned gives periodic updates to keep us all in the loop of how things are advancing and to also keep this development constantly buzzing in the crypto community to build excitement and momentum.
How will the SMT add value to Steem? Will people need to purchase Steem to use the SMT if no then no benefit to Steem. SMT will just be another Waves token where you can create your own token based on the the Waves token. Since SMT also utilised the upvotes and reward system then would the users of the SMT tokens also be able to receive rewards and paid in Steem? If that is the case then would Steem be the unit of currency for other tokens based on the Steem Blockchain and it would be beneficial to Steem price however some kind of investment like SP must also be incorporated into the SMT as well.
You say "just another Waves token where you can create your own token based on Waves" but I don't understand you, where do you think the value of Ethereum or Waves comes from? That's where the entire value comes from!
What value does being able to create ERC-20 smart contract tokens with Ethereum bring to Ethereum? That's the entire point of Ethereum!
If Steemit has a system that makes it not only capable of being a reddit but-you-get-paid platform but also a whole platform like DTube challenging Youtube (meaning Steemit could also be programmed to offer many other things like audio streaming platforms challenging the likes of Soundcloud for example) but ALSO be able to allow even more creativity on it's blockchain by offering Ethereum-like smart contracts, why WOULDN'T that increase value of Steemit?
Ethereum is required to buy other tokens and Waves from just its demand to use. Its platform is used to create possibly loyalty tokens as the "whoppercoin" which I think was based on Waves and thus how this affects the price I am not sure. SMT is a media token and will probably fall into the Waves category where you create your own token based on the Steemit platform where you there is a reward system. If the reward is in Steem, then yes it will be beneficial to Steem price but will deplete the reward pool unless some kind of measure in place like steemit.
There is always different sides to everything. I think your concerns is important for people to know and contribute. Resteemed.
I sincerely hope they get this right, it would be nice to see the steem blockchain grow to it's full potential.
steem is trading now @ $1.55. Can you believe how valuable steemit will be.
Most steemians may not get this by creating an SMT but the demand for steem will be huge.
Sky is the limit!
sky is the limit!
sky is the limit!
Keep on steemit!
nice video @exyle, it looks like weather of the nether land is still pretty rainy as i see a lot of fog outside the window, well you talk about SMT and i am still not quite understand that how it benefits the steemit blockchain but i totally agree with your thoughts that steemit it self is unique and once every social media platform starts to use that technology then it definatly hurts the uniqueness of steemit, but i think the community aspect is very important in order to make a platform successful, we also have a example of BCC vs bitcoin segwit but peoples give a massive support to bitcoin segwit, so let's see how peoples going to support SMT, well in my opinion it is great for all of us that we have only one token and that is steem in steemit blockchain, enjoy your weekend ahead my dear friend and thanks for sharing.