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RE: The good, the bad and the ugly
No, no more rewards in STEEM/SP at all. Rewards would be in SMT, STEEM would only work as fuel for those tokens.
No, no more rewards in STEEM/SP at all. Rewards would be in SMT, STEEM would only work as fuel for those tokens.
There of course could be some SMT named, say, STEEEM and inherits all original STEEM setting and even an identical airdrop to all Steemians (excluding Steemit maybe lol) ... Then we will still have a "STEEEM" working ... Well, if people are willing to behave accordingly of course...
So where would the Steem created by inflation go if rewards were no longer in Steem?
Currently it’s 65% to authors/curators, 15% to hodlers of SP, 10% to witnesses, and 10% to the DAO.
Inflation would be reduced accordingly
The 65 would be gone but the 15/10/10 would remain?
Am I the only one who thinks that’s a really, really bad idea? 😅
Details aren't fleshed out, it's just an idea for now.
Why do you think it's bad? What's the continued need for a steem pool when authors and curators receive SMT?
I think keeping Steem rewards is important precisely because it's the token with utility. It has intrinsic value, that SMTs probably won't. If content is important to the platform, I think content producers being rewarded in Steem makes sense. I think Steem, the chain, works better when Steem, the coin, is distributed more widely and evenly across more people. I think Steem in too few hands was really the problem that needed to be addressed, and EIP was the solution that let symptoms be addressed without addressing the root. Like you, I think downvotes and 50/50 are positives, but I think the curve is net negative and in the long run exacerbates the problem.
We'll see.
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What's the utility of a reward token? Where's the intrinsic value in that?
Content is important to attract people. SMT can be a way to bring content. If they wouldn't, we wouldn't need them.
The chain doesn't care how widely distributed the utility token (the one providing RC) is, as long as there's a way to provide the users with the RC they need to interact, which is what RC pools will be for.
The concentration in a few hands is a problem for reward distribution only, and that can be solved better with SMT than by hoping that steem distribution will become better in the future.
I also think that Steem being concentrated in fewer hands leads to governance problems, as the needs of the mass of users don't need to be considered when appealing to witness voters.
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I'm not sure the pool contributes to better distribution. Witness voting has always been decided by a few whales, nothing changed about that. When you're powered up it's not difficult to beat the inflation of STEEM with curation and author rewards, not even counting the witness rewards. I don't have the numbers, but I doubt the percentage of SP of the holding whales has dropped significantly. Real distribution happens on the market imo.
What is the continued need for steem if everything converts to smteees!
As gas tokens like eth?
No, thanks.
I get the poetic justice, though.
What's the need for steem now, besides being the source for RC?
Magic interwebz money?
I like spending sbd.
Steem, not so much.
No 30m usd pizza for me, thanks.
What happens to the folks that wanted to replace fiat?
Don't kill Batman!
First sentence it's money, third sentence you don't like to spend it. What is it now? ;)
To be money it first would have to be commonly accepted. Bitcoin has issues with that, it would be a lot more difficult for steem to get there. As a utility token fueling the blockchain it could have a real use case though, which could give it value. It already has that actually, but the high inflation gets in the way of the value rising.
The effect would be to rather dramatically reduce the supply of new Steem, not just immediately but long into the future. If Steem Power is the fuel for Resource Credits, what happens if transactions on the Steem blockchain grow by several orders of magnitude?
The needed RC for a transaction are (simplified)
available_sp / available_blockchain_resourcesThe available resources are constant and not dependend on the SP. Less supply means you need more SP to get your share of the resources, which results in more demand for STEEM.
Which results in a very nice income stream for hodlers of SP.
:D
No, you are not alone.
That's why they are advancing it, it's their calling card. lol.
FYI Golos have adopted similar model already. They have abandoned Steem code base completely, under the hood it's an remastered EOS fork.
For posting/voting you earn golos tokens, that would be sort of "SMT".
And the system token cyber is paid to block producers only.
How is it doing? Is the user base growing? Do the tokens retain or gain value?
It's probably too early to draw conclusions after just one or two month.
It was a not-so-happy divorce, accompanied with delisting from Bittrex.
The user base is split between Golos classic, which do maintain the original code ( but "forked out" the CyberFund affiliated accounrs) and the new CyberWay blockchain with the Golos application on top of it.
The CMC seems not to be aware of the fork and just do mix data for both chains together.
Anyway the volumes are tiny and the prices are on bottom.
Afaik there's some big p2p interchanges of cyber tokens for golos classic tokens with the exchange rate 1:1 going on now.