STEEM: SMTs Are The Wave: Start Amassing Them!!!

I realize that the SMT protocol is not out yet. However, we are seeing a number of projects releasing some tokens , or at least accounting for them.

Over the past few days, my discussions focused upon how Steem Power (actually MVests) are going to be rare down the road. Looking at the amount of STEEM issued versus what is going to be released during the next 20 years, it does not bode well for those who enter the STEEM blockchain in another year or two and seek to amass a lot of STEEM. This gives a massive advantage to the people who are on here presently.

We are already seeing the acquisition of SP getting tougher. Many of the larger accounts are starting to delegate SP directly to projects to get a return on some of their SP. These payments, unlike in the past, are not in STEEM but the future token created using the SMT protocol.

This is an idea that I think smaller accounts should look at following. Focusing attention upon those sites that already announced they will have SMTs could be potentially a way to grow one's holdings.

Let us use one of the more recent projects to announce, @actifit.

Here is an application that pays tokens based upon number of steps taking in a day. In other words, Get Paid To Walk (a definite Age of Abundance idea). Here we are seeing the STEEM blockchain move from one where people are paid for content to one where payment is made for activity.

In addition to downloading the Android app (IOS is being worked on from what I am told), one can earn tokens for delegation. This is a situation that is ideally suited for Minnows (above 500 SP).

@actifit offers a delegation payout of 1 token for each SP delegated...on a daily basis. This means that a small account delegating even 50 tokens could come out ahead.

Let us take a look at the math.

From what I was told, the total amount of tokens that will ultimately be issued is 1B. This is roughly 4 times the amount of STEEM presently outstanding. For the sake of our discussion I will use the 4 to 1 ratio.

If you are a MInnow and delegate 100 SP, that is a payout of 100 tokens a day.

Using a $2 price of STEEM (for simple math), that would give us a value of 50 cents for the @actifit token ($2.00 divided by 4).

Naturally, it would be a bit questionable to forecast that this token will be on parity with STEEM in terms of price. In fact, it is not unreasonable to presume that this token can be cut by another factor of 25 pushing it down to 2 cents. This means that the price of the Actifit token is 1/100 that of STEEM.

Does this seem reasonable? I think it does.

Therefore, at a price of 2 cents as compared to $2.00 STEEM, we see that 100 Actifit tokens = 1 STEEM.

So here is the big question: how many MInnows are earning 1 STEEM a day off their Voting Power on 100 SP?

My guess is that it is not many.

Over the course of a month, one can earn 3,000 Actifit tokens.

So what is the risk with this approach?

To start, we are not sure that the token will be brought out. The @actifit team announced their intentions and produced an Android application so they are progressing. Using the SMT protocol will automatically pair them with STEEM. The missing variable in all this is we have no idea what the exchange rate will be. If these numbers are off because, say STEEM explodes in price, and it is 1 STEEM = 1000 Actifit tokens, then one might not want to go this direction.

Of course, the flip side is that if one is finding it tough to amass more SP now, it could be worth a shot.

Personally, I would take a hybrid approach of mixing in some Actifit while continuing to focus upon getting SP each day.

One other aspect to this is that, for those with Android phones, you could download the application and get walking. Over 5K steps earns 20 tokens with it scaling up to 100 tokens for 10K steps. This means one could double the tokens earned.

The other application that one could do this with is @steemhunt.

This application garnered a lot of attention since it was the first one to offer the token payout (Hunt) for delegation. It was this decision that caused many Steemians to delegate large chunks to that project. They are presently sitting on 1.5M of delegation.

Why is this important? This is essentially a whale sitting there waiting for people to get active. Many complain that the Whales should vote for them. Well, here is the chance. @steemhunt goes around upvoting content posted on its site. Also, since it is using the account-based voting, the payout system is different than on Steemit which is stake-based. They designed a method that uses reputation score to make one's vote worth more. There are a number of other parameters to their voting model but you get the point.

Hunt will also be paired with STEEM meaning, if desired, Hunt tokens can be used to power up. One only need to convert these to STEEM and power up.

This is the major advantage of SMTs when they will be released.

Of course, the same issue applies as with @actifit. We have no idea how much Hunt will be valued especially in comparison to the price of STEEM. Nevertheless, this could be a good way to amass Hunt tokens while also getting paid in STEEM since upvotes do have STEEM as part of the reward payments.

@steemhunt also has a payout schedule for delegation. They pay in the Hunt token. Again, for those in such a position, it could be a way to amass some more Hunt on a daily basis.

Another factor to mention in all this is the idea of diversification. For those with smaller accounts, this is not much of an issue. The main focus of the SMTs might be to eventually turn that into more STEEM. That would only make sense. That, however, might not be the thinking of the larger accounts. To them, it is a way to diversify their holdings a bit. When one has 100K or 200K worth of SP, it could be wise to mix in other SMTs to spread out the risk a bit. So, do not conclude that all those amassing Hunt or other tokens are going to end up powering up with STEEM.

There are many tools starting to show up on the STEEM blockchain. Each week we are seeing new developments that can add to one's token holding. Nobody can say what the best approach is for another one person. However, here are a couple ideas to help people think about things a bit differently.

If you are not having a great deal of success doing what you presently are, switch gears. Try to utilize different applications to see if there is a difference. There is no reason to keep beating one's head against the proverbial wall.

STEEM is starting to offer up many different avenues for each of us to follow. We all need to decide which projects interest us and who we want to follow. The people who do that stand a greater chance of success.

Here are two applications that can be used today. I surmise that we will see at least double that in the next 90 days. Development is simply happening at too fast a pace.

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