This post is to call for feedback, suggestions, technical knowledge and input into an idea I have had. Particularly interested in Witness, Developers or coders input as to the feasibility. Also need people with knowledge of how the proposed SMT's will work to provide input.
Source: Pixabay
Proposal for creating an SMT as a transaction currency.
- The STEEM blockchain is one of the leaders in the Cryptocurrency field in transactions per second. When SMT's are implemented, many new use cases become feasible. I propose the creation of an SMT that is tethered in price to a fiat currency (for the purposes of this idea - Australian dollars (AUD)).
- Online commerce and transactions are growing at a rapid pace - this trend is set to continue. New payment technologies and methods are disrupting the status quo.
- As an example, Afterpay has grown rapidly in a short period of time in Australia. In a couple of years, it has developed a payment system that has gone from nothing, to a million plus users and thousands of merchants, along with international expansion. It's growth has been consumer driven - customers have demanded retailers provide Afterpay and retailers have obliged. For more information see Afterpay's website I use this as an example of how quickly new payment systems can disrupt the status quo.
My suggestion would look like this:
- A front end/website that consumers can start at. An AUD tether SMT (lets call it "Aussie Steem Bucks" for now - ASB) would be available to purchase. Purchase of this would create a new STEEM account for the consumer through the RC account creation process.
- A back end for retailers to implement ASB payment into their website. Retailers would also have a STEEM account established for them.
- A reward system for both consumers and retailers for using ASB's for transactions. Perhaps the system that @steem-ua is using to reward large delegators. As I understand it, a post is auto generated that then receives a steem-ua upvote for large delegators. In my proposal, a post could be auto generated for a transaction, auto voted by the SMT's account (It would need a lot of SP/delegated SP). Reward payout from this post could be split between consumer and retailer. All of this process would be automatic, and behind the scenes. All both parties to the transaction would need to see is an estimated reward for the transaction to be received in 7 days.
- At post payout, both parties would receive there reward (SP and SBD/STEEM) The liquid component could be set to auto convert back to ASB if desired.
- The consumer and retailer front end would need educational information regarding steem, SP and so on, on-boarding to the rest of the steem eco-system. All parties could be incentivised to delegate SP to the SMT account through a profit share arrangement.
Benefits for consumers:
- Fast payment system with ability to earn rewards for transacting.
- Build an account that shares in the profits of the SMT.
- Introduction to Crypto via an easy to use AUD stable coin.
- Earn crypto by shopping online.
- Other SMT's could cross promote via advertising on the front end.
- Possibility for referral bonuses.
Benefits for Retailers:
- A crypto payment system with a AUD stable coin.
- Broader customer base.
- Use earnings, profits generated to advertise on the consumer front end.
- An account earning STEEM/SP from each transaction - encouraging acceptance as a preferred payment system.
- Fast/free transactions - all permanently recorded on the STEEM Blockchain.
Benefits for Delegators:
- Profit share could be paid in ASB or STEEM as desired.
- Helping grow the overall ecosystem.
- More demand for STEEM makes SP more valuable.
So that is my idea, I would love to get as much feedback as possible. Genreal, specific, technical (I don't have much tech knowledge and no programming/coding skills at all) Dumbed down layman technical would be great. Also, general feedback as to if this is a system you could see consumers/retailers wanting to use.
I look forward to everyone's input.
Regards,
@jk6276 - John.
Banner thanks to bearone
Banner thanks to Baa
Interesting idea but not quite clear to me. Is the only purpose of the ASB to purchase a Steem account? And what about existing Steem users. Do you rather propose an online shop where you can use ASB that also gives you a STEEM bonus?
My proposal is that retailers integrate it as a payment option for consumers. The steem account would be created for a new user using the new RC account creation system from the Hard Fork.
So a retailers website would have a "checkout using ASB link", same as other existing payment options. Existing Steemians would be welcome to buy in (perhaps even with a discount).
The point of it is to offer rewards to both retailers and consumers for using ASB (and by default STEEM) as a payment system.
It's just a thinking out loud idea at the moment.
Thanks for taking an interest @cryptonik
good Idea, I like it being tether AUD, I think it's important to have the value stable for reliable retail transaction.
Yup, that is my thinking. I have no idea if any of this is technically feasible, just floating an idea for discussion. A Tether makes sense to me to allow for mainstream acceptance.
Thanks for your input @satorid.
It is a great idea, but I wonder, isn't this the purpose of SBD? To be a pseudo stable coin set to peg to the usd?
Yup, but I am thinking of a coin with a rock solid peg to any fiat (my idea is AUD to begin with - could be othr SMT's set up for other fiat currencies)
Quote from the SMT white paper:
I propose AUD as the "test case". The purpose is a crypto that is stable, acceptable to consumers and online retailers, with both participants rewarded for using it with STEEM/SBD/SP and onboarded to the eco-system.
For it to be tethered (properly), it would need a 1:1 asset backing? That could be the tricky part!
I think it would not need as much as you might imagine. Most of the tokens would be issued in return for AUD. This is held by the SMT issuer. Customer then purchases from retailer. Retailer converts the SMT back to AUD (could happen automaticly) Both customer and retailer are both rewarded with STEEM.
Some funds would be needed to cover purchases of the SMT made with STEEM or other crypto's. Until all transfers/exchanges happen.
Of course I could have this completely wrong in my head...
Sounds simple enough, but there is the problem of trust and submitting to audits and other overheads like that. Don't get me wrong, the idea is intriguing, but why would the retailer or customer prefer this SMT over fiat (Australian banks work well enough!) or other crypto with a heavier adoption/security or just flat out straight to a dedicated stable coin? The amount of reward in Steem is pretty small and a bit worthless to anyone that isn't already in the Steem economy.
Thanks heaps for your input. I have these big crazy ideas quite often. I have decided to put my thoughts out there and see what people think. On this, you are probably right, would the regulation and compliance be worth the risk? Would anyone not already in steem want to be for this. It's a complicated idea with lots of pitfalls.
Posted using Partiko Android
You would probably need to have set up a means to convert other crypto into AUD which would have to be held in an account at a bank that doesn't hate crypto (note, idk if such fiat based banks exist) so that you can issue the SMT ona debit card for them use.
Again, the agent for the debit card is something that you would need set up aswell.
So yeah, your idea is possible and I believe that it could work for Australia, as a perfect example.
With a lot more homework prior to moving forwards.
Ah yes, the banks. That's the hard part. This idea would have to fit in with the existing system of regulations and any approved fiat to crypto start point is a massive undertaking. With Aussie banks very anti crypto, hard to do. Getting one of the existing players (eg coinjar) to enable Steem would help.
I guess that there isn't enough scale with the existing steemian base to start this. I'll keep keep thinking and spittball any other crazy ideas I have to see if they stick.
Posted using Partiko Android
Hi @jk6276!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 1.930 which ranks you at #25859 across all Steem accounts.
Your rank has improved 353 places in the last three days (old rank 26212).
In our last Algorithmic Curation Round, consisting of 285 contributions, your post is ranked at #25.
Evaluation of your UA score:
Feel free to join our @steem-ua Discord server
Interesting post and I have to learn about SMTs
Hey @glastar, thanks for reading it. There is much to learn but I think SMTs will be a game changer.
Posted using Partiko Android
Hi, @jk6276!
You just got a 10.05% upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in here to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.