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RE: Steem Price Needs a Fix, ASAP!
The most simple implementation would be for every category to get 3-5 promoted listings where one can bid to hold the top slots for a number of days.
The most simple implementation would be for every category to get 3-5 promoted listings where one can bid to hold the top slots for a number of days.
That is only inflation control, that doesn't add external demand. We need external demand.
So that people will switch their cryptocurrencies into Steem. And how you achieve that, by having a service or product, designer for Steem users to buy more Steem in order to use it, or to get outsiders just using Steem just to get that product/service.
This would guarantee a minimum of 10% price increase yearly +/- other good or bad effects on the price. This is how fractional reserve lending stabilizes the price of a fiat currency.
I've kept it intentionally simple. Without rebelling against the system (lol) and admitting it is an extremely hard design goal (if not impossible) I think it a design flaw not to adopt some kind of early hyper inflation to the point where new contributors and contributions are of increasing value rather than decreasing. This idea is an alternative approach to get that result.
With simple dumb advertisement slots (dumb is nice here) the system can directly convert traffic into value as the value of the advertisement slot would scale with the volume and quality of publications.
A fun angle to this is that it runs entirely on cash flow. Where the money goes is almost irrelevant. If it for example goes directly to the people hosting the website it creates incentive for others to host the content. More fun would be to spend it on buying advertisement slots elsewhere, preferably from someone who takes steem.
At first it wouldn't create a lot of demand but the value of dumb advertisement scales exponentially with traffic. If you want a front page advertisement slot you will have to some how find the steem dollars to bid. When you lose the bid you will have keep them for next month, bid on tag pages or you have to some how sell them again. If there is enough traffic it will create monthly curves that attract investors. If the value goes up gradually advertisers will be smart to hoard a lot of currency and sit on it.