Proposal: Development of STEEM Side Chain (STEEM VM) STEEM Layer 2
1. Background and Problem Definition
The STEEM blockchain has been a leading platform for social media and community-focused applications. However, it faces significant scalability and functional limitations that hinder the development and expansion of its dApp and token ecosystem.
Particularly after the discontinuation of the STEEM ENGINE service, the following challenges have emerged:
- Token Issuance and Management Limitations: There is no integrated system for issuing and managing tokens or NFTs on the STEEM blockchain.
- Lack of Developer Tools: Without smart contract support, developers face difficulties in creating dApps such as DeFi platforms, NFT marketplaces, and blockchain games.
Discussions with witnesses and the community have identified these challenges as critical barriers to STEEM's growth. To address these issues and position STEEM as an attractive platform for developers and users, we propose the STEEM VM Layer 2 solution.
2. Objectives
The STEEM VM project aims to enhance STEEM blockchain's scalability, functionality, and economic framework by achieving the following:
- Smart Contract Support: Enabling innovative functionalities to foster a vibrant STEEM-based dApp ecosystem.
- Introducing a STEEM Token Burn Mechanism: Reducing inflation and stabilizing STEEM token value.
- Providing User-Friendly Tools for Token and NFT Management: Developing an intuitive system accessible to non-developers.
- Blockchain Explorer Development: Offering transparent tools for monitoring Layer 2 transactions and activities.
- Building a node system for a decentralized system
3. Proposed Solution
What is STEEM VM Layer 2?
STEEM VM is a sidechain that integrates with the STEEM blockchain while operating independently. Its key features include:
- Smart Contract Support: Providing a development environment similar to Ethereum, supporting JavaScript for developer-friendly ecosystems.
- Token and NFT Issuance and Management: Delivering intuitive interfaces and management tools for all users.
- Token Burn Mechanism: Burning small amounts of STEEM in every transaction to mitigate inflation and strengthen economic stability.
5. Expected Outcomes
Growth of the STEEM Ecosystem
- Formation of new user and developer communities.
- Activation of diverse dApps, including DeFi platforms, NFT marketplaces, and games.
Stabilization of Token Value
- Reduction of circulating supply through the burn mechanism, stabilizing STEEM token value.
Expansion of the STEEM dApp Ecosystem
Blokfield.INC's STEEM Layer 2 Dev history
https://steemit.com/steem/@roadofrich/steem-layer-2-beta-service-open-establishment-of-steem-based-token-generation-system
https://steemit.com/steem/@roadofrich/steem-vm-steem-layer-2-steem-side-chain-mint-token-system
https://steemit.com/steem/@roadofrich/steem-vm-steem-layer-2-steem-side-chain-update
https://steemit.com/crypto/@elitedevops/what-is-sidechain-what-if-steemit-have-sidechain
I think if STEEM has a side chain, STEEM wallet also should improve for supporting STEEM L2 tokens like TronLink.
Yes, that's right. The wallet system also needs further development.
I am skeptical that anyone wants to create layer 2 tokens on Steem. Steem Engine created a burst of activity and then it gradually became clear that nobody really cared about the vast majority of tokens created with it. It is easier than ever to create tokens on chains which are better connected to the larger financial world than Steem is, in that environment why would they want to do it here? Steem Engine wasn't that great. The Hive version doesn't seem to be that great. Why re-implement an idea that seems like it has already failed?
Wouldn't it be better to try to be better-integrated with a larger chain that has smart-contract support than to implement a side-chain that will probably not be widely trusted by outsiders?
Very good points here... Interested to hear the answers. It doesn't do us much good to build things if there is a high probability no one is going to use them.
When evaluating the current state of the STEEM ecosystem, it’s evident that even if STEEM-based dApps are developed, the actual number of active users is likely to remain limited to around 100–200. This is a very small user base, and considering the costs and time required to develop a dApp, it’s highly unlikely that any team would invest in creating a service targeting such a small audience. As a result, many projects either rely solely on DAO funding or leave the STEEM ecosystem neglected altogether.
Moreover, building a project on STEEM faces fundamental challenges. For instance, to reward users, projects need to provide STEEM tokens. However, the source of these tokens often remains unclear. Additionally, even if projects can offer STEEM rewards, they would need to guarantee a return on investment (ROI) higher than what Vote bots offer to attract users. This is an incredibly difficult task and has proven to be a significant roadblock for many projects.
This is precisely why the Layer 2 system is essential for the STEEM ecosystem. While the demand for supply exists, the current development environment does not allow this demand to be fulfilled. A Layer 2 solution can address these challenges in several ways:
Improved Development Environment: By enabling features like smart contract support, Layer 2 systems allow developers to create dApps more efficiently and effectively.
Optimized STEEM Utilization: New economic models introduced by Layer 2 systems can overcome the limitations of the current STEEM-based reward system.
Ecosystem Activation: By improving the development environment, more projects will be launched within the STEEM ecosystem, naturally driving increased user engagement.
In conclusion, a Layer 2 system is critical for the growth and sustainability of the STEEM ecosystem. It bridges the gap between supply and demand, enabling a more robust infrastructure for projects and users alike, ultimately revitalizing the STEEM ecosystem.
I see. Thank you. Do you think a layer 2 system will actually be used by many projects or developers? Will it need to be marketed?
When Layer2 is developed, an environment will be created where many developers can develop various dApps through the token reward system. You can also develop meme coins like PUSS.
If this environment is created and there is a dApp with a good idea, you can support it through DAO.
The success of the project will depend on the ecosystem and support.
Yes, as you said, Dev can develop tokens by connecting to other blockchains, but managing those tokens with STEEM accounts is very risky.
You can see that many multi-chain projects are always exposed to vulnerabilities due to hacks and bugs, and there are many cases of damage caused by hacks and bugs.
Also, multi-chains do not use STEEM. There must be technical elements that can simply link and support STEEM accounts.
I am actually developing and operating M2E+P2E services, but I am not connecting to STEEM. I do not want to take the risk of supporting multi-chains.
Currently, there is no environment for creating projects using the STEEM blockchain, so it is nearly impossible for large-scale projects to be created on the STEEM blockchain.
It's good news after a long time.
If it goes as planned, it seems to have advanced one step further than when Steam Engine was in operation.
You said you have a lot of development experience, but aren't the things you mentioned technically difficult? If it's developed, will it be possible to minimize the cost for users?
When will it be in operation?
And you said you're keeping your distance from other blockchains because of the risk, but can't the technology developed so far reduce the risk?
I hope a chain that can be used without burden like when Steam Engine was in operation is developed.
I'll cheer you on and look forward to it.
Thank you for your interest in this proposal.
This technology is definitely a difficult technology.
If developed, users will be able to use the service at a low cost.
If this proposal is approved, development will begin.
If we use STEEM chain instead of multichain, we can reduce the risk.
Thank you.
기대를 해봅니다. 스팀엔진이 정지한후 많은 어려움이 있네요.
내게 전화번호 보낼줄수 있나요?
https://t.me/roadofrich
이쪽으로 연락 부탁드리겠습니다.
0.00 SBD,
0.09 STEEM,
0.09 SP
연락처 감사합니다.
나는 텔레그램을 하지 않아
나를 대신하여 연락이 갈것입니다.
그분과 대화 나누시면 고맙겠습니다.
감사합니다.
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