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RE: Understanding the Steem Protocol (Massively Simpified)
Hi @dannyzen thanks for this article. I continue to read anything on SMTs as it would help with my understanding.
In my first summary on the SMT Whitepaper, I remember questioning where would the new tokens come from saying something like..."I don't think I can just pull them out of thin air" but from what you said here it seems like that is how it happens after all.
Hey @toni2oni that's great, make sure to follow me then! I'll be putting out an article diving into SMTs, hopefully next week. The SMT token are created just like ERC20 tokens are, although SMT creation will be streamlined. It feels like they're pulled out of thin air, because we can't actually see them being created. Paper dollars are easier to understand because we can go to the mint and see them being created, so it's easier to understand how it happens.
When an SMT is being created, it's an algorithm being created on the Steem blockchain. It's just a more techy version of the mint :)
Hey @dannyzen I get it. I'm following you already. And will continue to check out your posts. Follow me too so you give me feedback when I write as well.