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RE: Vlog 318: Voting bots or promotional services have their place on the blockchain for now.
People will just earn SMT with content creation and trade them for STEEM.
What will give those SMTs value?
People will just earn SMT with content creation and trade them for STEEM.
What will give those SMTs value?
this is the million dollar question @cardboard and because the answer is so complicated I have absolute confidence 80% of SMT's will be shitcoins.
I believe im being generous with the 80% too, because in the ERC20 world the number is closer to 99%.
What needs to happen, what should happen, is that a community, or a business that launches an SMT does so with a demand proposition along with it or you are simply creating a little pump and dump shitcoin.
For example, lets say someone creates an addictive game (hopefully what steemmonsters becomes) and they sell the cards only, exclusively for their MonsterCoin-SMT then, if the game is awesome enough, this would create demand for the coin from day one.
Since steem is the portal sort of speak into buying the MonsterCoin-SMT this also creates a demand for Steem.
I imagine it would flow something like this (assuming we don't get a fiat to Steem option)
Fiat -> BTC -> Steem -> MonsterCoin-SMT
At eat stage there is speculative gains to be made, thus keeping liquidity inside the markets.
Now, I'm not saying this is what SteemMonsters is going to do, I just thought up an example of how an SMT could potentially generate its demand.
Thank you for the answer! Tip! 2
The good thing with SMT every token is liquid and has value even shitcoins, you can exchange it back to Steem. :)
That is potentially accurate... I don't have any details pertaining this, but I would assume a bot would be setup to guarantee liquidity. Ver much in the way SBD and Steem interact.
Source:
https://steemit.com/smt/@steemitblog/smart-media-token-development
perfect.. I expected as much, I just was not sure.
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This is what I've struggled to grasp with SMT's. From what I understand, you--the website owner or whatever--has to fund up the SMT for your users to adopt. I can't see this going very well on SME's whatsoever.
The hope on this one is that it is aimed squarely at the top tier social communities attached to publications and the like. I'm not convinced that it is a product that is something they need.
Good question. Thought about that a lot too.
Considering you can tweak the SMT's to your own desire it's basicly up to the entrepreneur to add value to them and give people a reason to desire them.
I think we will see a lot of use cases we can't even think of today.
If you just see what people did with only one token so far (STEEM) I think it will be an awesome sight to behold.