RE: Steem is priced roughly $100 million less than Bitshares, does that make sense?
I totally agree that sentiment determine the price. However, STEEM has higher inflation to sustain a rewardpool. Therefore, more percentage of STEEM are produced daily compared to other top PoW coins or ICOs (which has a fixed supply). Therefore, STEEM needs the growth of investors, who need to consume these extra supply which is not happening in this bear market and luck of positive sentiment.
While BTS has zero (I am not sure, but it looks like) inflation. Therefore, there is no pressure to consume new supply.
One of the solutions could be to reduce the STEEM's current inflation drastically to 2% from current 8.7% by eliminating rewardpool using STEEM.
Assuming that STEEM distribution has completed reasonably (better than ICOs such as EOS). New STEEM production will only be used for interest on staking (i.e. PoS mining) and witness compensation.
Demand for STEEM will come from bandwidth purchases from the companies behind the SMTs, scarcity and speculation.
STINC, as a owner of Steemit will lunch their own SMT. Perhaps they can airdrop their SMTs on SP holders.
All the experimentation about rewardpool distribution on Steemit and other DApps will bottled out. The controversies around #rewardpoolrape will affect STEEM a little, since SMTs rewards will be the problem of the DApp owner and communities. STEEM will not be involved in conspiracy scheme to abuse the reward pool which is the main negative sentiment about STEEM.
The very DApp developers and community will decide on their own reward pool distribution for their SMT.
STEEM inflation will reduced severely, which will create scarcity, therefore, STEEM's demand will rise. Moreover, STEEM's valuation will also depend of DApps/SMT's success and DApp/SMT's bandwidth requirements.
Some very interesting thoughts here. I take it you are not the only one who has been proposing something like this?
I am not sure who thought it first. I wrote a blog on the idea a month back. However, @liberosist also had similar idea. If you like it, you can write a blog on it, due to your strong follower base, the idea may get more attention.
The sentiment about Steemit or any DApp should be decoupled from STEEM. Moreover, STEEM should be as scarce as possible to ride on strong speculation and HODLing.
Well said, I agree completely. Though is there much support for cutting off the inflation? I mean it drops every year as is and is really only about double what bitcoin is currently.