Who picks the Oracles? How do the Oracles set the rules? Could this lead to censorship? Starts to feel centralized when too few people have power.

I hope the first SMT communities will start out as subreddit-style communities on steemit and the identity verification part is verified on the blockchain, not via individuals verifying other individuals.

There could be an initial identity verification based on length of your Twitter, Facebook, Reddit, etc accounts by logging in with those services.

And then once verified, accounts could have equal weight in upvoting content.

Perhaps the top content producers should be able to tweak the rules, but it would be better if the community of verified users could vote on the rules instead.

Still, seems there's not a very big incentive to increase one's influence/stake.