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RE: How viable is Steem as a currency as the Steem network must constantly create tokens to reward bloggers and enable votes (causing lots of inflation)?

in #promo-steem5 years ago

I've supported (both financially and otherwise) several projects to build applications, to recruit users and build communities, etc. None of them have really panned out overall (in the sense of creating enough growth to move the needle for Steem overall). The failures of the projects I've personally supported aren't the point though. The point is that no one has done it.

If we look at the application/project that is bringing in the most users right now, it is Spliterlands, which doesn't even use inflation rewards. In fact that their stake is inflated to pay inflation rewards is an added dead weight cost to them and a discouragement to even be on the Steem blockchain, and that is our most successful application in terms of growth. That's nuts.

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The reason spinterland shines because it does not use the reward pool. The reason it shines because it is independent of the price of steem. Both it’s marketcap and user base went up during the alt coin bear market because of that. We need more projects like that, which are independent of the price but uses the efficiency and scalability of steem blockchain

Exactly. The reward pool is actually a cost to them, since their stake (which they need in order to provide RCs to their players) is inflated to pay for it even though they don't use it.

Well if we follow the Splinteralnds example, you can create a gaming development fund :)