I would always go with unlimited supplies, but it seems that I'm quite lonely with that.
(I don't get why most of the people in the crypto area are thinking that fiat with a central bank adjusting the money supply and the interest would be such a bad thing.)
Having a tool to actively print or destroy tokens gives you the ability to adjust the token to every upcoming change from Steem, @tipU or the Steem engine. This is so much more worth than the chains from the limited supply.
A SP delegation still has the 5 days cooldown period, tokens don't. So it would be an interesting way to see the price difference between those two options.
Unlimited supply gives the token (and with the fiat system every economy) also one very important thing: liquidity.
The token will always be accessible and not some overpriced, inconvenient token due to a limited supply.
With a limited supply, the change in the SP regarding price or amount will always affect the price of the token, which is only based on the supply and demand. But with a limited supply there is basically rarely enough liquidity in the market to get fair prices. Same thing at the stock market, stocks with only one sell per day are so bad in terms of liquidity it is never possible to get a fair working price. That is way better with blue chips where the liquidity is the foundation for a good working price mechanism.
Based on that:
PS2. Of course there's gonna be an airdrop for @tipU delegators :)
With the unlimited supply there would also the possibility to issue tokens based on the delegation on a day to day basis. As an incentive for the delegation, some extra bonus, like the airdrop in the beginning.
This could be also be perfect to keep the peg. Issuing more or less token, based on the increase of SP.
Something else: I like the idea of auto-reinvest, gaining more and more per day is always a perfect opportunity. But I don’t like that it’s only possible with a deposit of Steem on the @tipU account. Okay, I’m sounding that I’m not trusting @tipU, I know that and I don’t want to be rude, I’m just a little bit concerned. What happens when the system is failing and the bot is not working anymore? The keys to the account are lost thanks to some incident (Whatever the case may be)?
I can only think of two ways to counteract that, a trustee (but where to find a good trustee on the Steem blockchain managing everything?) or an increasing SP delegation from the account which is delegating.
I don’t if it would possible to just send the Steem in form of a power up to the account and then adjusting the Delegation, so that the account is left with a specific amount of SP. For instance I just want to run my account with 100 SP and @tipU would increase the delegation once a day/week to a point where the account will have 100 SP and the rest delegated away.
Would that be possible through Steemconnect or Keychain and some sort of website? (I would already be happy with a simple question from time to time “Do you want to increase your delegation to X amount? Click here and sign it with keychain.”)
That is a very valuable input :) You're right about the liquidity. The way I want to resolve this is to issue 10 000 000 tokens so every tokens is backed by 0.0014 SP (around). I hope that with this amount of tokens users will be more willing to trade them. Plus is cooler to receive 3 tokens than 0.003 token :)
Exactly. Wonder if I can somehow find the middle ground here...
I think I would need users active keys to do that :/
Even a high amount issued in the beginning will run into the same problems based on the fixed supply. The owner/buyer of the tokens know that the amount is limited and they will speculate that the price will rise so they have a decent gain. So they will hold it just for that purpose.
Reduced velocity, reduced volume, bad liquidity.
I might be wrong, but most of the comments are already pointing out that they like the value increase, which means they want that and not to move the tokens around.
This can be appreciated, if you want to limit the amount of token holders instead of creating new ones along the way.
Also I would think of an exit strategy in the case of the limited supply just to be on the safe side and to be able to pull the plug without getting the whole anger of the token holder. We never know what will happen to Steemit, @tipU or steem engine.
Exactly and I'm still trying to figure a way around that. I know that steemconnect needs the active key once to create a token which has the same posting abilities like the posting key. But the app never gets the keys.
https://steemit.com/steempeak/@steempeak/how-to-use-steempeak-with-your-posting-key#@jpphotography/re-steempeak-how-to-use-steempeak-with-your-posting-key-20180707t072337039z
I don't know if that would be possible like an active token. So that @tipU gets an active token to be able to delegate stuff (and would actually be able to send money around).
I guess it's just a Steem blockchain issue, that we are not able to give @tipU permission just for delegating to @tipU which would be exactly enough.
For the time being: I know that @tipU can deliver automated replies to comments with steemconnect delegation links.
How about two opt ins:
One for @tipU sending directly SP instead of Steem (and with that converting the SBD into Steem for SP, the swap feature seems to be there for that).
And another Opt-In for a reply/message after the SP reached a level that a update of the delegation would be useful with a link to steemconnect for exact that amount.
For instance: Someone has 1100 SP and is delegating 1000SP to @tipU, he gets then 100SP out of rewards etc., @tipU informs him on his next post/comment or per message that he should update his delegation to 1100 SP to increase his profits and to get some benefit for having more SP now.
I have no idea how popular that would be, how much programming it would take or how good the idea is overall. (Maybe it has a flaw, or that I'm just too lazy to do it myself.)
But I would certainly use the latter option so I can just forget about it until @tipU informs me with a handy link to update the delegation, whenever it's appropiate so I don't bloat the blockchain with daily delegation updates, just to put 0.4 SP to work.
An idea - what if reinvested part would be paid in tokens? It would increase the share just as it's doing now and users would be able to sell them. Still less secure than powering up users.
Edit: Nah, it's a bad idea - if the token's price drops, users who use auto-reinvest would loose money - and we don't want that :)
wouldn't that be pretty much staking?
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Kinda yes but still I don't want a possibility for users to loose their money (the reinvested part of profit) in case of token price drop.
What do you think about auto-reinvest paid in STEEM POWER (@tipU would power up users).
The idea to make the auto-reinvest part to be paid in STEEM POWER (powering up users) is a really nice one because it would free up a lot of @tipU own SP. Also every day more and more SP has to be used to support it, which "cuts" the amount of SP that could be used to support tokens. Not to mention the standard "deposit" functionality.
On one side it's a good moment to completely redesign those two services, on the other - I always liked the fact, that users can just deposit some SBD/STEEM and get an interest from doing so.
I think that many users use those because they can withdrawn the funds at any moment. Probably I'm gonna make a post about it to ask how the investors would feel about the possible change but something tells me it's a too big shift in how @tipU operates.
Also - because it looks that people would prefer to keep the tokens, what are the cons of lower liquidity? Apart from higher possible price coming from speculation (which is not such a bad thing?).