I’m still trying to understand it all completely, but from first impressions I don’t believe “branded” SMTs and Steem are mutually exclusive.
I could be wrong on any of this and would welcome clarification, but from what I could glean from the white paper,
- All posts and transactions are still on the Steem blockchain.
- There can be multiple “votable” tokens on a single post. So in most instances users will be earning Steem & a secondary SMT simultaneously.
- SMT markets all transact in Steem and are valued based on it. I definitely need to reread the internal markets section and get to grips with how Steem can be used to backstop or help peg the value of a SMT.
In my head I just imagine it akin to taking 100 Steem and chopping it into 10,000 branded SMT tokens worth .01 Steem each. Any value growth in a SMT would still be capital that is entirely “on chain.” Even though it’s in a separately named account of sorts, value hasn’t left the Steem blockchain in any way. If I transfer 100 Steem to another user then my market cap just dropped, while theirs rose. Of course we know Steem lost no value though. SMTs seem to just be an added level of compartmentalization, rather than a loss of value to Steem. Value will flow between SMTs, exchange rates for each will vary from worthless to many multiples of 1 STEEM, but in actuality it’s all just STEEM... “skinned” STEEM!
If these tokens are only liquid by moving through a Steem internal market gateway then they won’t be flooding outside exchanges, and it could even be possible to calculate them all within a bundled Steem system marketcap valuation.
The dynamics and norms that evolve will be interesting to see.
Very interesting! Thanks for your reply. It's becoming more clear.
Some of my concerns are certainly real and yet addressed already by the awesome steem team.. ty