So, I've read the Smart Media Token Whitepaper. It is written in 'Geekanese' so not the easiest to digest. However I think I've got the gist of the concept and in this post I will attempt to breakdown the Smart Media Token value proposition.
I won't cover my personal views, I'll reserve that for a later post.
I also will not cover the technical details of how Smart Media Tokens are set up. The whitepaper is 60 pages long, half of it (pages 12-42) is an "Owners Manual" really geared towards those interested in the mechanics of setting up a Smart Media Token. I'll leave it to others with a more technical bent to audit that!
I'll try and stick to the value proposition and hopefully do so in simple layman's terms.
Understanding the Smart Media Token (SMT) idea
User Generated Content (UGC)
There are a number of social media, blogging and news platforms in the world today that enable users to submit user generated content (UGC), be it posts or comments. Most platforms provide a means for readers or viewers of UGC to express their approval or disapproval of UGC either through votes/ likes and comments.
Until now there has been no way for users to easily monetise their engagement. Smart Media Tokens aims to be a way of enabling website owners to offer their users just that, in their existing platforms.
Smart Media Tokens - powered by STEEM
Smart Media Token (SMT) will be tokens (created on the STEEM blockchain by website owners) that can be distributed to users of social media and websites. Distribution will be based on the 'likes' or upvotes users receive on their UGC. The tokens can be integrated natively into existing websites.
Vote weighting
The token creator determines how much 'weight' each upvote carries. Each vote can carry the same weight. Or there can be stake weight voting, meaning the more tokens a voter holds the more weight their vote carries.
Token creation
Anyone can create a token and give the token a name. Upon creation the token creator determines (a) the total number of tokens that will be in existence (b) the amount of tokens that will be issued upfront (c) the rate at which these tokens will be issued and over what period of time.
Token allocation
The new tokens issued (e.g. on a daily basis) go into a "rewards pool", the voting will determine how those token will be allocated to users. The initial distribution of coins can be determined by the token creator.
Monetising tokens
It is ultimately for the token creator and the token's community to find new and innovative ways to create demand (and therefore value) for the token. SMT simply creates an out-of-the-box mechanism for tokens to be created, distributed and traded in exchange for other tokens/ STEEM and eventually into 'real world' currency. The whitepaper does put forward 5 potential use cases:-
- Content Publishers - using SMTs to reward subscribers through a comments interface
- Forums - enabling it's communities to tokenise their niche
- Online bloggers - using comment widgets on sites like WP and Blogger to reward commenters. Developers of widget can share in rewards
- Moderators - mods of e.g. sub-reddits or Steemit communities (when they come) can launch tokens for subscribers and to raise funds
- Arbitrary Assets - tokens can be pegged to 'real world' assets
How do token holders trade these tokens?
The STEEM blockchain will have an internal market, where all SMTs can be bought and sold. It is also claimed in the whitepaper that an 'automated market maker' (largely based on the Bancor Protocol) can be created upfront 'providing perpetual liquidity to an SMT community'. I.e. Token holders will always have the ability to sell their coin when they want. (NB: I'm not qualified to substantiate or refute this claim)
Shared Influence
Token creators also have the option to decide whether (and to what degree) STEEM holders/ other SMT holders have influence their token's distribution. Meaning that token creators can incentives holders of other tokens to get involved in their token.
Fund raising/ ICOs
Token creators can, if they so wish, sell an initial supply of their tokens (privately or publicly) in an Initial Coin Offering (ICO). The ability to easily set up an ICO will be baked into the SMT creation set-up process.
Splitting Rewards
There is an option to split token rewards between up to eight (for now) beneficiaries. E.g. Creators of comment widgets and apps can code a reward split into their application. Authors can split rewards with other contributors to their content.
Cost of token creation
1 USD (and a STEEM account) is all that is required to create a SMT. The fee is paid in a Steem Backed Dollar which is then burned.
That's it!
There you have it. An overview of Smart Media Tokens on the STEEM blockchain. This is by no means an endorsement of the concept. I'll save my views for another post! However I did think it would be useful to pull out all the key components of this proposal as I see it.
Let me know anything I've missed out (or misunderstood!) in the comments section below. I hope you find this resourceful.
This is just what I have been looking for. Someone that uses English to explain the core concept and function of SMT. You explained everything very well and even I got it.
The more demand for steem the better, this sounds good to me :)
Thanks for taking the time to breaking it down and explaining it in non geekinese !
Wish you a good weekend !
I just need a video on how the smt is created
Very well thought out and easy to understand explanation. I've read so much on this today my heads spinning, but I feel I have a pretty good grasp of this now.
It seems to me, that all new SMTs are derivatives and essentially backed by Steem, this would create a very significant demand for the Steem token resulting in a much higher Steem price.
I see a plethora of reasons for wanting to do bring this platform to an existing or new website to attract and incentivize users. This will very interesting to see how this unfolds.
Can't wait to read your personal views on it. If it's another nanzo-ned conversation I'm really looking forward to it!!!!
Helpful thanks. I'd be interesting in knowing how easy it would be to set one of these up. Not aimed at a technical person but explained for a layman. Can anyone do it?
Depends on UI. With a good UI it should be easy to setup and manage.
Well, let's hope it's user-friendly. I quite like the idea of having my own token!
I tried reading it last night and failed,guess i was tired or it was written in gekanese hahahahaha
You have given us an overwiew of the whole whitepaper.
According to your analysis,it is a great way many people,businessesa reable to monetize their content.
This is really amazing and it will make Steemit grow massively when the implementation begins.
We should expect massive numbers of new users here before end of this year.
Nice little run down of the increadibly dense whitepaper.
I would personally like to hear your views on it, after reading your runover of snip, you get down and deep ;)
Once again, Im excited to utilize this... curious what you think about tho. Ripoff of eth Erc20?
I think its a great move forward for the steem blockchain as other chains are also working towards this smart token approach.
Great post. Though STEEM is the currency, the network is Steem!
So how does this influence the price of STEEM. I see the increase in the use of the STEEEMIT blockchain and the potential to increase the number of users but price of STEEM. Still a bit lost.
Hi Cody, see my above comment STEEM is the currency, Steem is the blockchain and Steemit is the social networking platform (blockchain explorer).
Re: Price implications - Just like ERC20 tokens, where people have to use Ether to participate in the ICOs, people who wish to participate in SMT ICOs are going to need to purchase Steem :)
Steem will be a far better blockchain for ICOs as the transactions are ~ instant and there are no tx fees.
Interesting distinction between STEEM and Steem. I've just used STEEM as I like the capitalisation!!
A SMT will be exchanged through STEEM, so we won't have a pack of SMTs and STEEM only one of them. We will have STEEM, and after that a cluster of SMTs over STEEM. Market-wise, this will in all probability help interest for STEEM, as a token.
Additionally, the SMT age system is far more mind boggling than only a token issuance on the Ethereum stage. When you dispatch a SMT, you truly dispatch a thin layer of Steem-application-forms over your substance, including your own particular prizes pool, your own particular swelling model, your own particular voting and curation calculations and your own vesting component.
Hope this helps.
If that's the case, then we'll win.
Just like that :D
I heard about this yesterday and I quickly went for the whitepaper. The whitepaper was one I found myself dozing intermittently. But with this demystified analysis up there. I'm sure going back to it. I should lend an input in your next post. Thank you.
Thanks for your time to read the white paper and report on it.
This will take STEEM to the MOON! Thanks for the easy to understand info! Followed!
The future of tokens could bring much profit to those hodling steempower
So SMT are like in-between tokens. To prevent a plethora of different crypto's. Where Steem with be the 'leading' token?
I have read the white paper, and there is only one thing that I dont quite understand, I would like to know if:
Can the token Reserve be depleted by tokens sellers?
I also want to know the answer, or is it a kind of probability statement?
Thanks for summarizing this. I'm sure it will propel Steem to new heights in the near future. Upvoted your blog
I love the term "Geekanese".
During my first look at the whitepaper, I thought it was "Nerdish", but now, I think you can be right, too!
THX for your effort!
Thanks for great post
this is a great breakdown for SMT's
Thanks for this.
This is a great idea from dan
You did well for sharing. Thanks
I started reading about this yesterday on Ned's page and it was sort of difficult to understand . But now that this is much easier , I'd love to. Create a token and give it my own name . This is really good idea
I do not recall seeing this in the whitepaper but since all these tokens run on the steem blockchain would that entail that all tokens also have to be managed by the steem witnesses or is this a totally different topic?
pourquoi je ne peut rien poster sur mon compte steem it ?
Very helpful gist of the entire whitepaper. It makes it so much more easier to understand it.
Ethereum now has a direct competition!
I think I get where ur going...still a bit over my pay grade but u do break it all down well....Thanks for the article..
Thank you very much for your work. You have explained clearly enough))) I wish you a good day)))) And I look forward to your new videos)) You are interested not only to read, but also to watch)))
Thanks for the simplified version of it as i got confused after reading the SMT yesterday thanks a ton :)
Thanks for the update, great info!:)
I invite you also to enjoy my first giveaway, in my last post:) Two Nature Art accessories with Steemit Art logo!
Steem on :)
Sunny day!
Thankyou for sharing @nanzo-scoop . . I like your post
creative post. really helpful. great work!
That's a really great overview Nanzo.
It is REALLY late for me here, so I am going to come back to this.
I wanted to see what you were up to so I came to visit your blog tonight.
Have a good weekend.
The machine and I have translated Your post in german language.
https://steemit.com/deutsch/@chris-iv/smart-media-token-eine-leistungsbeschreibung
Thank you for the post.
awesome write-up! @nanzo-scoop can I share this post on the podcast shownotes?
I didn't had a chance yet to read SMT whitepaper, so I'm very pleased with your summary and understanding of the whitepaper in this post! Low entry to launch a coin, and the basic tools to manage the coin seems to be made available with SMT. I see a lot of potential, especially when integrating this further with existing services and systems already in use by businesses. But, STINC shall concentrate on the social media services and tools to be able to onboard commercial business to make Steem the currency used for many of those businesses who use Facebook and other social media services to run their marketing and interact with their followers.
Thanks for this, its helping me on my journey to become a Steemer!! :-)
Great breakdown. Watched the video that @ned sent out and it was decent too, but left me with a lot of questions. After reading your post I still have a lot of questions and also opinions, but I will keep them for when you write your opinion piece. Thanks for the non "geekanese" breakdown
You've really increased my understanding of the White paper.
You have truly dissected and predigest it for me. Thanks
Looking forward to your personal views on the smt subject is there any chance that that article is already out?
Hello
I am very excited about the launch of SMTs and I have some questions.
Can SMTs use other means that "upvotes" to track Proof of Brain?
Is there a way to set up SMTs so that the incentives do not require people to use voting bots?
Will SMT ICOs only be open to accredited investors in the United States or can any STEEM holder purchase tokens?
Are there any companies that are planning to provide marketing services for SMT ICOs?