Making It Work: The Steem Ecosystem. "THINKING OUT OF THE BOX"! (Part Two)
OK, so in the original post: Making It Work: The Steem Ecosystem. "THINKING OUT OF THE BOX"!
I brought up the idea of how we could use the existing ecosystem and adapt it for the real world/fiat market needs.
How to have the main focal point, the foundation to the Steem blockchain and ecosystem become what it was envisioned as.
What am I talking about?
Well, I highly recommend you read the first post.
For those who can't be bothered reading it, here is the short version:
SBD as we know it, is a cryptocurrency (legally speaking) and as such can be traded on all the trading platforms that are legally registered for trading cryptocurrencies.
If SBD were to be removed as such and replaced with a "loyalty points/rewards" system it would no longer be legally trade-able on any of the markets.
It would not be a cryptocurrency as such.
It would be restricted to the Steem blockchain.
&
As a "loyalty point" it would be acceptable to all merchants of this fiat based world.
However, this would not change any of the existing taxation laws of the various states/countries out there.
Some would still classify them as "profits", some as "assets" and many to most would not consider them taxable as they fall in the category of "coupons, points = loyalty rewards", while some may only consider them taxable once converted into tangable, taxable goods or services.
All of that depends on the jurisdiction a person lives in/falls under.
What this would do however, is make what we now know as SBD acceptable in the fiat world.
Merchants would be able to incorporate them into their points of sale, LEGALLY, without any of the worries that crpyto brings with it.
Likewise, it would become exactly what it was imagined as being, "a bridge between the crypto and fiat markets" in the real life sales of goods and services.
Hence making the dream of what our Steem ecosystem was supposed to be.
Had to clarify this point and bring it to a direct, short and easy to understand point form type of continuation of the original post.
I again believe that everyone who has read the original post, should read it again, and for those who haven't to do so.
As this post is literally a continuation and clarification of that post.
Let's make Steem become the dream that we envisioned it as, the world changer!
Yours truly
Hmmm we mice are a little unclear as to why merchants would want Steem Loyalty Points. We get why they might want QANTAS or Velocity points - at least they can upgrade to business class with those. But why Steem Loyalty Points?
Sniff and Scurry.
Because they would be able to use them to get discounts at other merchants who accept them or convert them to a $1.00 worth of Steem (tokens) at any given time.
Unlike other "points" on the market, these could be used as was the vision with SBD.
PS.
Just to add to that, some merchants may restrict it to the purchase of their in store gift gift cards.
Again, up to the merchants what they will accept them for.
& they could easily have a contract with lets say Bittrex or Binanance etc etc, to convert their Steem to fiat immediately (if that is what they want).
so you're saying kinda like - a merchant could use it as a "discount code" or something at the time of checkout... pay X amount with your steem points and the remaining balance with whatever else?
and you're saying that the points would be transferrable (once the merchant had them) into, what? Steem? $1 worth of Steem? Is that how they would cash out the points?
Yes.
Exactly that.
Or the other option is for the merchant to use them at another merchants place of sale and save a few bucks!
Best part about it, when an owner of points wishes to exchange them for Steem tokens, they can do so via the internal exchange and the points get burned, hence the internal debt ratio is lowered!
Works out EXACTLY as was imagined by the people who created Steem!
I had read the first post, but let me be blunt and say this post has made it much more clearer for me. I love this idea and can see how it could work. But that's where my knowledge about this ends.
Now, I am just going to linger around in the comment section, silently, and learn more from the people who actually have something of value to add to this post.
This would at least allow for the price to be fixed at 1usd worth of steem at all times. It would basically become a piece of code with which any user holding 1usd worth could, at any time, create 1 usd of new steem and put it into their own account or into the account / control of anyone other user. (this is basically what we have now, accept the value is set by the market). This would stop the value over inflating as happened last year, resulting in a lot more inflation than expected (as far as i know). to understand the true benefits of this, you need to look into why the SBD price was allowed to be set by a market mechanism, and was not fixed and kept within the platform. Do you know the answer to this already? (I don't, and am occupied doing too many other things to find out at the moment.) am interested to follow this idea however
Once a cryptocurrency as such is owned by a trading platform, that trading platform can put it on its market.
No stopping it.
However, after poking around, these trading platforms have rigid rules, regulations all bound by even more rigid LAWS restricting them to the trading of certain things.
i.e., they can't go and trade chickens, TV's or other things that are not clearly defined as cryptocurrency (tokens/coins).
So SBD as a cryptocurrency can never be pegged to anything, as is the case with any cryptocurrency out there.
It is all dependent on the market.
While in house coupons, loyalty points etc are restricted to the blockchain and the code and can not be listed on cryptocurrency exchange platforms as such.
& why would they, even if they could, when at all times one loyalty reward point can be exchanged for $1 worth of Steem at any given time, via the internal exchange, in which the points would e burned and hence make the dream come to life, as was imagined.
exactly. Interested to find out why the SBD was floated as an exchangeable token, and not a points system pegged to the usd within the protocol of the blockchain.
From what I have seen to date:
People in the cryptosphere don't want to adapt to the needs of the fiat markets.
&
People who are still stuck on fiat can't comprehend crypto.
Hence we are where we are, two systems running parallel to each other instead of intermingling.
Jack you are brilliant
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Hmmm. I can see some sense and truth in your post but the question is? Do you think it is possible to do that with SBD? I mean will it
If it wasn't possible, I wouldn't be mentioning it.
& as our family lawyer with whom I spoke about this said "it all comes down to legal definitions of what you are actually offering".
That is true
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