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RE: Understanding Steem's Economic Flaw, Its Effects on the Network, and How to Fix It.

in #steem6 years ago

In that case don't you think even current applications be converted to SMT, when SMTs are out, each with their reward plan and use cases e.g. steemit-SMT, DtubeSMT, busySMT and backed by their SP holdings supported by BANCOR convertibility and liquidity.

And steem based reward mechanism is completely abolished. Then this entire issue rest at peace.

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And at that point, anyone who holds Steem will lose 8% per year through inflation.

Every economically literate user would sell..

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Emitted steem tokens due to inflation be distributed to the activity under that SMT

Where will you get the investors to buy the SMT's?

Tokens will still need buyers. Steem will still need buyers. Otherwise everyone has coins and tokens that are not worth anything.

The biggest concerns that the stakeholders should be worried about is here are utility, and ROI for investors ..

All of the suggestions above are designed to lessen ROI for investors.. If they can not make a better return here than they can elsewhere, then they quit here and take their investments elsewhere.

SMTs that are providing utilities and have developed community - will at the end have to have more SP in their account to develop their ecosystem in order to reward their investors as well as their community members.

This will increase demand for steem hence price and the rewards for investors

The only difference in current model and SMat based model is value creation is further decentrlized within steem ecosystem