Hardfork 22- SMTs, Let's Burn Steem!
So, I know HF21 is the main topic of discussion. I literally just hosted a forum on it. It's uploading to youtube, and I'll be sharing it to d.tube shortly. While I'm waiting for the file to process I wanted to share a relatively simple thought early in the SMT design process while this thing is on my mind.
BURNING STEEM!
Eth vs Steem
I posit that one reason that ETH is expensive is that every single transaction takes gas. That puts a continuous demand for the token. That's a good thing. The problem though is I have personally often found ETH to be a really frustrating token to work with. It's timed out, my gas experience hasn't been great, and feedback on games and user base on games is that paying a fee every time you want to do something in game isn't a great experience. The alternative of building your own chain before you get to build the game itself isnt' great either.
Steem has a pretty great user experience at the blockchain level. Things are fast and free. As a cryptocurrency the price is shitty. I think in part it's because there's no burning of the token.
How to rectify? SMTs!
We do this on steem-engine and it seems to work well.
To create a token you burn 100 eng
to make it stakable you burn 1000 eng
To make it delegateable you burn 1000 eng
The cheap token uses the least amount of database space. As you increase the functionality the price increases. By doing this people go to the market, purchase the cheapest steem from the weakest hands and burn it. That's good for the price of steem. These are also events that really only happen once per token, effect business owners and not end users, so we still get the ease of use.
What about steem-engine and smts?
Just to be clear I'm pretty agnostic. We look forward to making interfaces to allow you to create SMTs. We look forward to helping you list them. If you create a Scot you'll get listing for free and get charged for running the tools. If you create a smt you may not get charged for running the tools, but you'll be charged a listing fee.
SMTs are coded at the blockchain level. There's benefits and weaknesses to that. I think an SMT, a SCOT run off of Scotbot, or a Scot run off of a future planed smart contract might be the most beneficial in any situtation. My aim is to support all of them on Steem-engine.
If the burning happens on the business end, maybe.
If it happens on the user side, forget it.
Another example against, besides Gas, is all the drama around getting Bytes to exchange Future tokens from Drugwars. I think a lot of people can attest to this.
Making things easier to use creates value.
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There really other problems to fix!
Making the onboarding process easier
A huge professional marketing campaign
Support new an low users
HF21 will only drive users away and make it much harder for newcomers to grow.
Have a nice day
Tom
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I agree, on-boarding, effective marketing, support for members with low SP, have remained an Achilles heel for the platform. Hope HF-21 and new promotional campaigns will begin to address these core issues.
I like the idea of having more sinks for Steem to support the price. We are missing those sinks.
Thinking out loud here ... but as an alternative/twist on this idea, when SMTs are released couldn’t the inflation rate of Steem be dramatically dropped at that time? This might accomplish a similar thing (if I am thinking about this correctly) without the need for charging people. This would allow us to continue to be a “free” blockchain. With people earning SMTs, a large Steem reward pool seems less necessary? Does that make sense?
steem sink. SMTs backed by x number of steem held per unit. ?
I like your analysis. I’m curious how things play out with SMTs.
I respect the work you have done for the STEEM blockchain, but this analysis of burning coins doesn't make any sense.
No ETH, or BTC for that matter, is being burnt.
For example, with Binance coins... Yes, that's why the price might have been going up.
One could say that the selling pressure on the price for POW coins is way higher than with DPOS coins, as the miners actually have to sell the (majority of the) coins to pay for the electricity.
The reason why STEEM is comparably not doing well is because it's not well-understood and mostly because the broader crypto audience believes it's a failed project.
Value is ultimately subjective.
If we want STEEM to start going up again (compared to the other cryptos), we will need a sentiment where people believe there is value to it.
So true!
Price is mostly driven by speculation. People buy crypto on speculation that its price will rise in future. Investors may avoid buying or even keep selling cryptos whose price is going down. LTC is showing strength since halving reward drives price up. Traders are buying LTC on speculation of future increase in price during halving in August.
On the other hand, Steem is being sold in fear of price decline. It is a negative virtuous cycle.
Moreover, relative higher supply of Steem is not consumed by the low demand by new investors. Steem need better marketing due to its default high inflation which is required to reward the content creators.
Yes, burning will bring speculators but sentiment reversal should be the priority. A well-planned marketing can help a long way.
A coinbase airdrop to change sentiment and burning of of STINC's 5-10M Steem can take Steem long way. Also, aggressive marketing can help. TRON, Cardano, and EOS are master of marketing. At least STINC can pay for marketing from the income through Ad revenue from Steemit.
The other idea is to drastically reduce Steem's inflation and let reward distribution work to SMTs.
Yes, sentiment and positivity is the driver of valuation rather than fundamentals. Steem is thousand times superior in features, speed and utility than BTC or LTC. But it does not matter, if investors don't buy it and feel FOMO or optimistic about it.
How about SMT's plus,
Which will both directly affect the sentiment and garner attention from basically the entire cryptosphere.
Well said! :)
I am very glad that I met your blog about a year ago. If it were not for you, I’m afraid of me and most of the active players of splinterlands haven’t been in steem yet. Thanks to SE, I started writing comments again, especially since I can write a 1-n comment that will catch all SCOTs with a tag reference. For me you are witness number 1.
#spt #palnet #sct #jjj #aaa #actnearn #dtc #weedcash
It does? eiishh hot!
#spt #palnet #sct #jjj #aaa #actnearn #dtc #weedcash
I agree with token burning on the side of platform owner while transaction is free for end users, kaboom! Steem is new sexy.
I dont think Steem needs burned. If a SMT creator needs to Stack them for RC, if fully ok.
Think about, if you have 100kSP you will never need your RC. But if you Stack this for your Token and you can Share your RC with Token holder, there gets free transaction on Steem would be cool.
I think this would be make Steem more Valuable too. Reason is simple, if you have a nice Smt project and you need a lot of Rc, you need more Steem.
There will be maybe a lot of SMT projects in future, so there need to Stack a lot of Steem.
So Stacking Steem makes more Sense.
And for the Enduser the awesome thing is, there dont need Steem, if there have a SMT.
For me this sounds easier and smarter.
Agree - it sounds easier and smarter for me too... 👍🏼
It all comes down to simple supply and demand. The only real demand I have seen for steem is to stake it and hope it makes you more steem. I know that sounds shitty but I would expect it is why most people hold and stake steem at the moment ?
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