Yesterday @steemhunt announced their SMT airdrop where half of all tokens would go to voters, delegators and existing Steempower shareholders. I resteemed the post cause I thought it was an excellent way to decentralize their tokens while at the same time funding their initiative and at the same time I got excited about the future of SMT's and what they will mean for Steem.
I believe that @steemhunt won't be one of the few to create tokens in this manner. As someone who has been around for quite some time and experienced ICO's that started by accepting Bitcoin and Ether in their crowdsales and then also used the blockchains in their projects there is a lot of sacrifice happening by using their costly blockchains for transfers. The explosion in ERC-20 tokens has proven that the Ethereum blockchain is not ready for that kind of traffic yet as we have noticed with Cryptokitties and the recent 4chan games that became big and ate up a big percentage of their daily transactions.
The negative aspect of this is that you have to outbid other transactions for the mining network to accept yours before theirs. If you remember what happened during the BAT crowdsale that sold out in half a minute and due to the big demand to get their transactions through investors had to pay top dollar to cut in line - leaving many average users out from the crowdsale. This is only a small part of the problem, there is also the issue with you having to get rid of your Ethereum that you believe will appreciate in price over time for an investment. It is kind of like betting that the investment will outdo the profits Ether would bring over that same period of time.
Not only is it risky and requires a lot of research to invest in ICO's, their teams are the ones that now hold Ethereum. If they end up not being trust worthy and defaulting on their project, they will cause big downtrends in the price of Ether which will be like a double negative for you who in hindsight should've just kept your Ether to begin with. Of course there are also many legitimate ICO's but time after time it has shown that many of them have died or stopped moving forward.
With SMT's though there is a completely new effect to be had. With the SEC stomping down on certain tokens and qualifying them as securities due to their promises when accepting investments, I believe that many projects in the future that decide to start their funding on the Steem blockchain will look into not accepting investments because of that.
They will instead do similarly to @steemhunt where they fund their projects through upvotes, delegations and other various ways that the blockchain enables them to. Projects won't have the need to "lock" funds they've received to gain trust to their investors over time as they will be rewarded funding over time instead through upvotes and delegations. Investors and users will be able to cut their delegations if certain criteria is not met and maybe even go so far as to continuously flag their attempts to reward themselves with the SP they have gathered so far in the case of a bad actor. Of course we will still have to be careful with what we fund with our voting power and delegations since it is not difficult for them to just power down the funds onto another account and abuse it there.
The other thing that has a huge positive impact onto funding SMT's will be the lack of having to divest your SteemPower to be able to invest in these projects. It is quite a unique method of funding projects with newly created Steem that will decrease the risk factor of investors by a lot. Once we see the huge boom in new projects starting out and using these methods for funding it will also increase the huge demand for holding SteemPower as you will directly benefit by having helped funding these projects and being rewarded with their SMT for it and continuing to reward them and relevant posts about the project with Steem/SBD and the SMT.
I for one am really happy that the Steemit team has been working so hard on making sure that the blockchain will be scalable and ready for all these transactions and user growth. I know there are many users out there complaining and whining about how much the front-end lacks but there is nothing stopping other people to create something that out-does Steemit. Look at busy.org who for instance is incentivizing users to use it instead through votes and a better layout with more options.
I want to say that what is written in this post is only my point of view and its not all too technical, feel free to further discuss details in the comment section. I am really excited about SMT's though and looking forward to how it will all unfold and what genius projects will come to light through it.
Thanks for reading!
Owk since I heard the news about steemit, it's been jolly jolly alll the way with lots of good sides to it. I am quite shocked at this post because I never really knew there were some risks to this.
As at this morning, according to @exyle's vlog, steemhunt has received over 100k delegations and counting, meaning that people are really buying into them.
Well I might not know so much about them as you do and might not get to even participate because I don't have enough sp yet to delegate but i will just stand aloof and see how this pans out. It could turn out good after all.
100k sp is totally insane! This is going to be wild!
I did read the post from @steemhunt and also the one of @taskmaster4450 about it.
But I still don't understand how we could participate into it! For sure if you don't have enough power to delegate.
But like you wrote it is a great sign for the Steem blockchain. Really looking forward to HF2.0 which should go life Q3 this year.
Than we will have a much clearer idea how things will evolve!
I think you'll get some tokens by just upvoting their posts as well.
Mhh, will try it our and let you know :)
I think the SMT’s are a game changer and is going to help bring more users to the platform and increase the price of Steem and viability in the long term.
It seems to me that focusing on creating a scalable blockchain rather than a pretty UI was a smart decision. There are so many different ways to interact with the Steem blockchain and as more people come to the platform, there will be more developers who can build a better front facing site for blogging.
We have already seen the likes of Zappl, DTube, and Steepshot created as their own variation of Twitter, YouTube, and Instagram.
Being able to fund the projects with delegations is a game changer!!
It is a game changer indeed and am thankful for steemhunt for showing us that! They do know how to get this frog hot!
Fair points!
I'm really hoping that this is a signal for chance with regards to how people a) view their liquid rewards - ie. Power up more of them, and b) choose how to use their SP.
Yeah the bots are currently paying well, but spreading some around to projects like @steemhunt to take advantage of airdropped tokens, will hopefully see accounts choosing this option too.
And yeah, screw the interface here, if you don't like it, use another. What was mentioned in the @steemitblog yesterday is more important and has potentially, far more potential to increase the value of our STEEMs.
Cheers!
You can imagine how im agreeing to you right now as im waiting for my ETH token transactiion for the past 2 hours with a 2 dollar transaction fee. 2 dollar transaction fee...
SMT has been talked alot about by @ned. And he seems pretty invested in it. But without it's implementation, I'll always have a healthy amount of skepticism as to whether it really will become a reality.
When SMT does roll out, goodbye ERC-20...
I'm starting to think that SMTs are going to be the catalyst to the bubble popping of many altcoins built on Ethereum.
It definitely will.. entrepreneurial people will start suggesting companies to ICO usint SMT since its way easier and it wont take many SMT to get media attention.. Once that's done its all going uphill.
you mind sharing with me why do you think that @tim3w4rp?
Sure.
Consider Steemhunt, for example.
They will be distributing their own tokens built on top of SMTs, once they go live. Not in a way ICOs on Ethereum work, though. To be able to jump start their business, they came up with the idea of distributing those SMTs to Steem Power delegators.
You delegate to steemhunt -> you gain a share in HUNT tokens. It gets more complicated, hence the link. You can read more there.
The point is, Ethereum does not have the power to do this. There is no delegation there. You simply have to buy the token with ETH.
You could say that I have to buy Steem and you would be right. But the delegation gives you the power to seamlessly transition between projects. Meaning that I have the freedom of taking my money out of certain projects to put in into other in a matter of minutes.
Not bad, it's a cool idea for token distribution. So it means that the value of steem will go up even without skyrocketing of SBD (Like the last time).
It is quite a unique method of funding projects with newly created Steem that will decrease the risk factor of investors by a lot.
As a result of which more people will invest in steem because people are afraid to invest in crypto and when the risk factor will be minimum more people will invest and the steem platform will grow and touch the stars.
I hope SMT will bring positive result, wating for SMT wating for good days of STEEM.
I am really excited about SMT's though and looking forward to how it will all unfold and what genius projects will come to light through it.
Same is the case here @acidyo, I am also excited a lot.
I'm getting excited about SMT now, i can't wait for its launch, please tell me when is it going to launch?
thorough SMT we can have many benefits and some of them are listed in the post @acidyo, you have done well man, steem is a blessing and SMT will add new life to it 😊
Do you guys always vote each others comments up?
yeah we do
: <
is there any problem friend?
I'm personally not fond of vote-trading, plus I usually reward good commenters that don't self-vote/vote-trade on their comments.
oh so sorry 😑 will be cautious from now on
Hi, I’m one of the creators of Steemhunt. Thanks for such a great view on SMT as well as mentioning Steemhunt.
We are actually building a concept of HUNT coin based on SMT platform, but the timing is not ready yet. We want to build the healthy community first before the ICO (especially nowadays there are too many ICOs for not-even-a-single-user-existing app 😂).
Anyway, thanks again for your great post 👍
Am I correct in believing that you can invest in SMT's the same way you would upvote a post? It would cost you nothing outside of your voting potential?
This is the other reason to power up of course as, one doesn't have to divest stem to earn on it either. These kinds of things make Steem a no-brainer yet, still people struggle to grasp what this means. combine it with all of the drops likely and less than brains (whatever that is) are needed to make the decision.
After all SMT has launched really it had been hell lot of waiting ....
Am pretty sure SMT will make its way bullish ,the way making steemhigh.....
I like that your post is logical and cautions us about getting overexcited about crypto when talking to our non-crypto using friends. People need to arrive at their own opinions about things, so when bringing someone in, often less is more. Instead of overselling, as you point out, I would rather just direct someone to steemit (via a link to my post) and let them wonder why there are $ signs next to votes. If they are the curious type - they will discover STEEM on their own. Then they can dive in if they want.
(Also, I just want to say I avoid the news now, because every time I see a post about the US and North Korea it makes me sick - if they are going to nuke us all into oblivion, I would be better off not following it to the bitter end.)
No one that I have pitched steem to has joined. Even people who I know would be interested and who would do well. One person said "when I read up on the whole fake money thing, I was out." lol. A lot of people do not understand crypto-currencies and it frightens them a little. I'm not deterred though. I'll keep trying to convince people. Like you said, we don't have to convince people first try. I'll whittle them down.
I pitch Steemit and SMTs in the simplest way ever.., I just go with the flow. I let it out the way it makes me feel, I just have a fun discuss. The world takes things too seriously and that makes it hard for the creative commons to do some good.
i was most awaiting person for the launchment of SMT it will proceed steemit top a new and the rates will go up and up with the laument of SMT i have asked from many witness that when SMT will be launched but they didn't replay might they didn't saw my question i would to ask you the same question @acidyo that when will SMT launch? and when their will be spring in steemit!
Blockcain will be more powerful in future
And your point of view is nice I appreciate that
good post, thanks for giving us information
@abh12345 also opined that this could be the end of people patronizing bidbots on the system now that they know they can invest in something better. Like I said earlier, let's just watch and see. This could help us alot here
Thank you for your informative sharing.Actually i want to search for altcoins to invest a little bit.That information makes it considerable....
Have a nice day...
I thought the SMT project has already been launched given that there were lots of talks last year. It will be a shame that the launch has been delayed due to funding issues. Again, any improvements on the SMT platform is definitely beneficial for all Steemians in the long run. Still, there is a risk to bad actors around in all kinds of project. Cheers to all those who are working their asses off to make SMT a reality!
This is an excellent analysis.
SteemHunt’s initiative is big and an awesome way to reward investment and almost no-risk investment even. You can always withdraw your SP delegation again. And users are also given the opportunity to gain large amounts of HUNT by contributing early.
Also great POV that those ICOs now hold vast amounts of ETH and BTC and can cause fluctuations in the market. All while also being left at the whims of the market.
Well Smt's will definetely help to the most underdeveloped part of Steem Blockchain which is self funded projects , I'm really excited about it too I hope I can live long enough to see arrival of Smt's I'm quite positive about it
I read @steemhunt post today and i am really excited about their airdrop of "Hunt" Tokens and iam really excited to see a good move using SMT's and i think SMT are going to set a new and easy standard for entering into ICOS and it's also motivates people to accumulate more steempower for getting free token without any charges.
Even people who I know would be interested and who would do well. One person said "when I read up on the whole fake money thing, I was out." lol. A lot of people do not understand crypto-currencies and it frightens them a little. I'm not deterred though. I'll keep trying to convince people. Like you said, we don't have to convince people first try.
@acidyo i believe your point is well taken into consideration
Very informative post. Hope to back such kind of valuable post.
This is so nice and educative thank you so much
Thanks for your insights here. I think it's important to have an SMT architecture in place as steem is providing a real world use case to many for the first time. Having the same tools as other platforms will encourage people to stay on steem and therefore cement its first mover advantage. Whatever replaces steem will need to be 10x better than steem. However the platforms that are building on top of steem already have demonstrated that value is value is value; Utopian.io already has a moderator system, looking around the platform I can see a nearly limitless infrastructure for building anything we can imagine already. The trouble areas here of course are privacy, as anything posted without encryption is public forever, and smart contracts.
Inventory control, internal POS, virtual reality, and rich media are all coming. I truly believe the attention market/brain paradigm on steem will encourage people to spend their time here. Politics, knowledge, science, art, news, sports, games, gambling, shopping, and even memes... anything that is public or is done in public has a place here.
Imagine autonomous cars you hail by posting on a "d-uber" platform; it requires a 100% upvote, and it's platforms wallet also upvotes the ride. Bringing tangible value to its users, and funding the cost through inflation that then gives steem another defining edge outside of exchanges and in real world commodities.
SMT may have it's uses, I'm glad it's coming, it may also provide more market edges for price discovery; but the innovation already present is mind boggling.
This is most interesting. Holding SP is looking better than ever. Despite the drop in the market cap of nearly every coin out there today, STEEM seems to be holding up. I don't think it's a co-incidence. I think it may have a lot to do with these announcements that you're talking about and other very recently published developments.
Good points. To add to the points that you have mentioned, I am seeing most of the EOS projects getting announced on a daily basis are really better done one STEEM as a dapp and even more effective by using SMTs. In addition to the ability to not to leave one's stake, the ecosystem of various middle ware services matters a lot to create a successful blockchain project. (dapp). Steem is well placed all these abilities and I hope marketing is done to use the unique skill sets to the maximum potential.
Excellent summary of the potential of Smart Media Tokens.
There is a reason so many of us are ultra excited about the technology being released. The latest update by the development team was very encouraging to me. I agree with you, scale now before the need is there; not after.
In spite of the attacks they get, I believe this team is on the right path. SMTs are going to make the ERC20 protocol look like it is from the stone age.
What Steemhunt is doing is just one funding idea. I am sure we will see 10-20 others once SMTs are released and many people start to put their creativity into this.
I totally agree that this idea as a method of fundraising is really smart and could be more beneficial for both parties than a traditional Ethereum ICO. They have already received a good amount of delegation. My question is how are they going to use the delegation? Will they be upvoting themselves to get rewards to sell for fiat? If so that is going to put some downward pressure on the STEEM price, although if the project is successful we may see it have an overall positive impact on the price.
Either way I hope that the SMTs are available sooner rather than later so we can see how this will all pan out!
The problem with airdropping to SP holders is that Steem Power is fundamentally centralized...
That's the beauty of decentralization, the other day I was discussing with a friend about how hard it would be for projects to establish on the platform in the future because people would rather use steem to power up rather than giving it away to some scammy ico, but guess what, @steemhunt changed that perspective suddenly when they introduced this reward model and incentives, I can't wait for smts, this is going to be amazing.
It just brought an idea in my mind, if such superior platform can tokenize like this, why not donors tokens or educational tokens come in. Like "smartcash" . And the supporters will receive tokens according to the value they provide to the charity, donation of steem/sbd. I hope you got the Idea and can brainstorm more than me :) Let's see how their SMT goes :)
Really interesting times, the SMT, I have a very good feeling about it. I like how these projects on the Steemit blockchain are adopting and being very unique.
Great post. As a mobile app developer starting to make the transition to blockchain, the Steem platform and SMTs specifically have me EXTREMELY excited! These truly are Grade A, groundbreaking technologies and ideologies, creating a whole new paradigm of app development and project funding.
I was able to know @steemhunt by resteem of @acidyo.
I also think that it is interesting to get a token by delegation. I resteemed this article. Thank you.
Hi again.
Another easy to piece of work.
Please continue up with creating interesting content. I know it may be hard at the beginning to build reach and solid followers base. But just so dont ever give up! :)
Steemits needs solid content builders.
Cheers
Piotr
Yeah I've been holding on on inviting people in masses as well until they get their registrations fixed so it doesn't take a long time for approval. I think once that is done we will see an explosion in new accounts daily.
I have dreamt of doing a guerrilla steem campaign once this happens, we need to bring all the fan fiction writers into steem! especially the harry potter crowd, steem needs their content!
"Harry I don't remember your wand being this long!"
"Hagrid! that's not my wand, Its my slytherin!"
I should stop visiting those sites but I can't! help 😭