Are SMTs guaranteed to succeed while SMT's backbone currency STEEM is still struggling for better governance. Solution- Limit STEEM's supply and launch a Steemit SMT!

I was wondering about a dilemma that how STEEM's price can be appreciated while there will be more STEEM produced in next 20 years than current supply. If the distribution laws stay same, whales, big abusers, in some cases, spammers will earn chunks of the STEEM as is now.

Year | Current supply | Inflation | New supply | Possible Year
1 | 250,000,000.00 | 0.095 | 23,750,000.00 | 2017
2 | 273,750,000.00 | 0.090 | 24,637,500.00 | 2018
3 | 298,387,500.00 | 0.085 | 25,362,937.50 | 2019
4 | 323,750,437.50 | 0.080 | 25,900,035.00 | 2020
5 | 349,650,472.50 | 0.075 | 26,223,785.44 | 2021
6 | 375,874,257.94 | 0.070 | 26,311,198.06 | 2022
7 | 402,185,455.99 | 0.065 | 26,142,054.64 | 2023
8 | 428,327,510.63 | 0.060 | 25,699,650.64 | 2024
9 | 454,027,161.27 | 0.055 | 24,971,493.87 | 2025
10 | 478,998,655.14 | 0.050 | 23,949,932.76 | 2026
11 | 502,948,587.90 | 0.045 | 22,632,686.46 | 2027
12 | 525,581,274.35 | 0.040 | 21,023,250.97 | 2028
13 | 546,604,525.33 | 0.035 | 19,131,158.39 | 2029
14 | 565,735,683.71 | 0.030 | 16,972,070.51 | 2030
15 | 582,707,754.22 | 0.025 | 14,567,693.86 | 2031
16 | 597,275,448.08 | 0.020 | 11,945,508.96 | 2032
17 | 609,220,957.04 | 0.015 | 9,138,314.36 | 2033
18 | 618,359,271.40 | 0.010 | 6,183,592.71 | 2034
19 | 624,542,864.11 | 0.010 | 6,245,428.64 | 2035
20 | 630,788,292.75 | 0.010 | 6,307,882.93 | 2036

Even with SMTs an abusive whale can still post 5-10 times in Steemit (even if Steemit's significance becomes low at SMT's launch) and will earn STEEM handsomely.

Say, if STEEM shoots to $25, will the whale market-maker not take the advantages of buying some SMTs in loads and makes some pump and dump trades by setting up buy/sell walls with his easily earned STEEM on Steemit.

Even with community where moderators will fight abuses and spams, earning new STEEM will be in the hand of big holders. How will underlying currency STEEM work even though SMTs sees top success since STEEM, the mother currency, can be earned as same method as now. Will not the SMTs struggle due to STEEM's distributions, chaotic governance and abuses.

It would be great if we can do a great analysis beforehand how STEEM will function including its future distribution, in case of SMT's success or failure. Because, with high price of STEEM (due to SMT success), it can become bigger target of abusers as it is now by evil whales or whoever.

When a whale (@haejin) can earn hundreds of SBD and STEEM daily, and knows how to set buy/sell walls for Pump and Dump coins with low supply or marketcap. Will not SMTs with small marketcap and being traded against STEEM, be easily be victim.

Even some people speculate that SBD is pumped (which is supposed to be pegged to 1 USD) by some traders (or whales) for better earning at Steemit.

SOLUTIONS

Limit the Supply of STEEM and launch SMT for Steemit or dtube or any app

There is a SEC rule that dictates that coins that are sold in crowd sale fall under SEC's security rule. Therefore, either the coin has to be mined or airdropped on other coin holders.

STEEM is already widely distributed among the investors and contributors. Therefore, after some time (e.g. one year) if STEEM is stopped to reward authors but only PoS holders and witnesses, it demand will rise sharply due to low supply.

The inflation will be around only 2-2.5% to support new SMT businesses and activities. Then the base currency, STEEM will work as the strong backbone of the STEEM blockchain.

As of now, SMTs will be paired to STEEM and STEEM will be distributed as well, STEEM's controversies (e.g. whale fight, reward-pool abuse, bidbots) may affect severely SMT's demand.

But by limiting STEEM's supply, Steemit.com, busy.org, dtube, dlive can launch their own SMT currency to reward contributors.

STEEM's price will be appreciated from the demand for starting new successful tokens. Therefore, underlining baggage of Steemit cannot ruin SMT's success since Steemit will have it own SMT.

SMTs can live on their own world, take the routes they like with lessons from Steemit.

Some SMT may allow bidbot and flourish under bot world. Some may banish bots all together.

It will be wild, wild, west. But due to very limited supply and wide distribution of STEEM, SMT will be bound to succeed.

Disclaimer: This opinion is not a financial advice, it is my personal perspective and opinion. Please seek professionals for financial decisions.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@riseofth
Cryptominer since 2013, occasional trader and tech blogger