Yes, there's something very significant you are missing but I salute and applaud your thinking. Just so you know, this was precisely how Utopian was working and how we managed to build the EFTG project faster and below budget.
But the people you pay with upvotes need to buy food. And if the food market does not accept STEEM, it means they need to sell the steem for fiat.
That is a MAJOR problem. I have explained these mechanics in my "Steemland" posts under my main account, @sorin.cristescu.
If you have a MASSIVE "sell" pressure on steem (all 10 employees need to sell their steem to get fiat to pay rent and buy food) you need to BALANCE that with an equivalent BUY pressure or else the price of STEEM WILL go DOWN.
The key is to have a dynamic equilibrium between those buying steem and those selling steem.
To get people to buy steem you need:
- compelling goods and services which can be acquired only with STEEM (e.g. STEEM POWER - you need steem for it) or which are much cheaper in steem than in fiat
- competent, skillful marketing
For your idea to work, we need to work on increasing the demand for STEEM
You're right. However, in theory, the massive buy pressure of the company buying and powering up 33 million Steem should help with that.
But you've raised another issue in my head. We all HAVE to sell Steem eventually at some point. We're not going to HODL it to the grave I guess.
Selling per se is not a problem. The key is to have an equilibrium between the quantity of steem being sold and that being bought. Think of a bank: if everybody comes to ask for their money at the same time, the bank goes bankrupt. Steem is the same: if we all sell at the same time, the price plummets and confidence with it and selling begets selling and the whole "value convention" collapses.
So in a sense the key is "timing" - decreasing the "velocity" of STEEM (a term from monetary theory)
thanks for the feedback man. wow never knew that’s how utopian worked.
and yeah you are so right. people need to eat. and the local grocery stores aren’t accepting steem.
i would hope that this future could be a reality when steem becomes more attractive to the every day person. but i’d ask...what do we need first. more people using steem and acquiring it or businesses investing to bring those marketing minds over?
or both lol
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Let me play the devil's advocate too. We have about 109 million liquid STEEM and roughly 307 million STEEM in all. A startup buying over 30 million STEEM is... almost impossible. We are simply not that liquid. Because that startup is not going to wait for months or maybe years to have their buy orders filled in, even if the price spikes.
The interesting part of such a move is that they won't need 30 million STEEM if the price spikes.
And Sorin's arguments are valid. There needs to be a constant balance between the buyers and sellers, otherwise it will be an initial huge spike, afterwards sellers will dominate.
By the way, seems politicians see potential in the Steem blockchain even before startups (are you kidding me, free money, what's not to like??):
https://steemit.com/eftg/@pstaiano/the-european-financial-transparency-gateway-eftg-pilot-project
Your idea is great, and should be possible when we have more balance in the market, but that's why we need to see it from both sides!
lol oh you knew the politicians would salivate at the opportunity here lol
yeah the numbers aren’t there yet for sure. but the frame work i believe is there for companies to look at this option for paying salaries.
maybe not 30 million steem. but i know i’d work for upvotes lol
Yup, the model already works for Utopian.io, as Sorin mentioned, but I think they want to add a new dimension to their rewards with the upgrade they are working on. We'll see.
I would rather want to see a start up or a bigger company create their own SMT, and partially pay their willing employees with that. But we're still waiting for SMTs first...
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steem engine is pretty brilliant. and those SAVVY tokens are flying off the shelves!!!
not really lol but yet at least.
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Yes it is, but it's not a replacement for SMTs. There is no reward pool, no delegation etc. to allow the creation of an entire ecosystem.
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you think smt’s are ever coming? i mean...they are rarely mentioned these days from the powers that be?
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