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RE: Smart Media Tokens for Dummies!

in #smt7 years ago

First of all, this was an excellent and useful read as a newbie to cryptocurrency in general, much less Steem. I'm still a little unsure what the relationship between Steem Power and bandwidth is. I do understand as a general rule why more bandwidth is needed as communities grow larger, but why does that necessitate buying more Steem Power? I guess my next question there is, buying it from whom? Forgive me if this is a silly question; my knowledge of both cryptocurrency and general economics is pretty shaky.

Also, while I understand the value of Steem Power transferring to newer communities to help them get started, would that be true in reverse? For example, would someone who had amassed a lot of Tweet Power have the same kind of transference if they then moved over to Steemit? I'm curious what effect this has on the original economy, in either case.

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Thanks, regarding bandwidth, the more steem power you have, the more bandwidth you have for posting on the blockchain. For example, a brand new member might not be able to make two small posts right back to back, while someone with a lot of steem power can make huge posts one after the other. If some app is using a smart media token, all of those transactions are also recorded on the steem blockchain using the bandwidth of the account that created the smart media token. So as that smart media token becomes more popular, that account will be required to hold more steem power, otherwise it will eventually reach its bandwidth limits. As for who they would buy steem power from, I guess the answer is... anyone! Most likely an exchange though. Or they could just make weekly posts about their token and power up those rewards, etc...

As far as I know, holding smart media tokens will never give someone influence over the distribution of steem power and SBD rewards, only the other way around.

Best,
Trogdor

Ah, I see. Thank you, that makes a lot more sense to me now.