Thanks TM... there is still a gap I'm not quite understanding...
If the NY Times releases a token using SMTs... what stops it from purely being a sticker? A cute thing with no value? Does NY Times have to then offer products or services using those tokens? If NY Times has a blog on Steem, and I make a great comment and they award me 5 NYTs... surely they have no value until either someone else wants it, or I can get a product for my NYTs, or they offer to exchange NYTs for cash?
Sorry, I realise I'm being annoying, I'm just not quite sure how it all fits.
The 5 NYTs can be exchanged for STEEM....that is where the liquidity comes in. If you had to wait for a buyer of the NYTs, it wouldnt be liquid.
As for the value, NYT could have an ICO and then have it traded on external exchanges or only STEEMs....either way, there is a price set.
Since NYT (and all tokens) can be exchanged for STEEM, you will technically be able to buy whatever you can with STEEM using those other tokens. It might require a conversion first.
Realize not every token created is going to have value. NYT and HUFFs might but Bobs Bread Making probably wont unless that type of site has a ton of traffic I do not know about.
Ahhhhhh, that's the gap I wasn't getting. I completely forgot that the SMTs would be easily exchanged for Steem... it all makes sense now.
Basically NYT would invest $50,000 USD into Steem... then create and buy their own NYT tokens to give out to their readers, that say, contribute a photo. Their readers could exchange those tokens back to Steem to power themselves up or buy goods and services.... we all better get those Steem shops up and running!
Thank you Taskmaster for taking the time, once again, to explain everything to me. I really, truly appreciate it.