Smart Media Tokens: Questions in the loop.
steem price has gone up in the past few days since the news about Smart Media Tokens was announced, four months ago @fyrstikken of SteemSpeak.com interviewed @ned scott( founder of steemit) and they talked about Community Tokens / User Issued Tokens & B2B Solutions,and the Linear Reward Curve. here is the post about the interview.
few days ago we heard the news about Smart Media Tokens ( A new way for publishers to monetize their online content and community, based on battle-tested blockchain technology.) and the problems it aims to solve. even 4 months when the interview was conducted their were questions that people were asking, while some of those questions had been answered, some have not. So in this post i will like to ask some questions based on what I've read on the official Smart Media Token website.
According to the SMT website, these are the problems they want to solve.
The Problem
Publishers and creators struggle to make a profit from their digital content
Why?
- It's hard for publishers to acquire a critical mass of paying subscribers.
- Ad-revenue is taking a hit with the rise of ad-blockers.
- Tips and donations are not viable due to the expense of processing micro-payments
- Huge social networks like Facebook take profits from publishers but don't share revenue
And this is how they plan to solve those problems.
The Solution
To enable publishers to create tokens that help monetize content and grow communities
How?
- Tokens enable publishers to create mutually beneficial community based economic incentives to drive platform growth.
- Smart tokens with near instant settlement and zero transaction fees opens up new non-advertising business models.
- Publishers can also use the tokens to fundraise via an ‘Initial Coin Offering’ (ICO).
So what are Smart Media Tokens?
While i can define what smart media tokens are to best understanding i will rather use the definition of its creators.
What are Smart Media Tokens?
- A Smart Media Token (SMT) is a native digital asset on the Steem blockchain that can be quickly launched by anyone to help monetize online content and create incentives to encourage desired user behavior.
- They're like Ethereum's ERC-20 tokens, but with certain built-in ‘Proof-of-Brain’ properties and a token distribution reward system designed specifically for digital content businesses.
Now anyone can set up their own custom token
- It's quick and easy to set up your own token.
- Choose from several out-of-the-box options based on common use cases, or customize your token as you wish.
- Create the right incentives that will drive platform growth and reward your community.
- Use the new token to fundraise from the community.
Here are the questions.
1)Steemit is currently a community of more than 350k users, what is the future of steemit when it gets to maybe 50m users or more and everyone is just interesting in creating their own tokens.?
2)weeding scammy fundraisers
3)how will it affect/impact the price of steem positively and negatively?
4)is there any exchanges to trade this tokens given the facts that there will be tons of tokens available
5)what will be the impact of this tokens on steemit, can users exchange tokens to each other?
Anyone with vast understanding of smt can enlighten us more and those with more questions should add theirs.
source: https://smt.steem.io/
Your post is a pretty good primer on the concept and use cases of SMTs. Thanks.
Thanks, glad you liked it. Do consider resteeming it.
I am not an specialist but I have readed the WP and I know how it works Bitshares and also a bit Waves ... same sistem as will be implemented on Steemit as far as I know. Of course, they are differences between all this platforms but I am thinking more about the token system based in coin.
I do not think this will happens, many will do it but this will be a real "free market" so just the good ones will survive as normally happens in a real desregulated free market scenary. It is not happening in Bitshares eco-system, yes many do tokens but not everybody and I should take a look but also not even more than 50% of the users ... In Waves I honestly do not know how it is at the momment.
Maybe they could implement that a user with low rep can not do a token or tokens done ny this user get freezed or burned ... so scammers would not have so much opportunities, you just need to flag his account for example. I am just speculating but I think something would be implemented.
Well, my personal view is that the price will go up, it should because of the need of the Steem token will go up too
Internal market from Steemit? Like Bitshares and Waves? Already Steemit have an internal market, do you know it? https://steemit.com/market
5)what will be the impact of this tokens on steemit, can users exchange tokens to each other?
Same answer like for the 4th.
Hope this help a bit to answer your questions or at least give you some new ideas.
Edit: english is not my mother language, hope everyhting is clear
Thanks for responding, it's a bit clear now. While it's a good idea to restrict low rep users it might not be the best solution because someone with a low rep can also have an awesome idea for a token.
The price might be low if there are too many tokens.
If I can trade my tokens then it might not be nessesary for me to use Steem.
Let's see how it goes.
You can always speak with the people who have flagged you. It is good this is a Social Media Network and not a company like Apple or Google ;) For example when you are blacklisted for cheetah you can always speak with anyx (the creator) to whitelist ur name. But that was just my idea, not that they will do it like that in Steemit.
In the internal market you trade ur tokens just again Steem as far as I understand ... so you have to always use Steem. Also you can block some Steems to give a predefined value to ur tokens ... Steems blocked means more value to Steem ... You can not trade ur tokens everywhere, at least how it is writed now.
It will go Ok and if not we will learn from the experiment ;)
Thanks for taking the time to reply. I really appreciate it.
everything is very clear and understood, i like the way you broke everything down from your own point of view