Is the Smart Media Token the token of the future?
Let’s have a look at SMT’s mission and how it can help businesses and consumers in the future.
Five months ago, @ned made an announcement that he had just finished the Smart Media Token Whitepaper. It was 50 pages long and he’s expecting everyone to interact over it, offer suggestions and even criticisms and share it.
Here are the 5 main points that he discussed in his video I basically want to share with you what I heard:
There's really 5 value flows in Steem especially after the creation of SMTs. This is actually very important.
Bandwidth Demand
Steem actually acts as a sort of bandwidth allocation token which means is that most blockchains need to prevent spam and the way you do that is you have cost or fees in order to process transactions. In Steem, you don’t have to pay fees. All we have to do is to hold Steem and while we’re holding Steem, we’re granted a certain amount of bandwidth so everytime we transact, we don’t have to take anything out of our pocket for a transaction fee. They have designed a cost-analysis algorithm that basically allows great user experience. Steem now gets to act as the bandwidth allocation token for SMTs. Anybody who wants to participate maximally across all the smart media token communities that they get involved with will need to have more Steem to allow them to do all the transactions that allow them to earn all the possible SMT that they want to earn. So there's essentially demand created for Steem to act as a sort of gas or the energy that we are going to need to be profitable. So that’s the key driver of the value into Steem as a sort of bandwidth calculation token.
Exclusive Fundraising
Image Source
In the advent of SMTs, ICOs where people are offered new investment opportunities brings in capital from outside the blockchain ecosystem so there's new marketing going on new advertising coming on that brings you new dollars. And those dollars have to come through Steem, increasing its value. As long as the value doesn't leave after the ICO (since there’s an ICO contract built in to SMT), it’s going to be very easy. Anybody can participate in the fundraising with the click of a button. The money comes into SMTs and for as long as a hundred percent of the value of steam isn't sold by the person who does the ICO, then the value is retained by Steem and there’s a net value and net benefit. And beyond that, there is attention to get paid to the underlying token. So, ICos are a good thing. and I think that the fundraising opportunity is very interesting. Fundraising is usually very very difficult and products need funding. I think ICOs maybe a key to that. You know with the ease of which these tokens on steam are integrated into applications, there's far more reason to actually have ICOs because the token off the back is being used to grow form. -To grow an application. It's got real tangible use. It's not like these other tokens we see on Ethereum like ERC20s that get sold then they do absolutely nothing. They just sit there in people’s wallets. There is no utility whatsoever. There are not growing communities. They do not impact the web and what Steem is going to be offering is something that people will the use off the bat. It will have high velocity, high energy and tons of use.
Automated
Once ICOs are on-going, the third thing can be bringing in value is the automated market maker. So the automated market maker ICO can offer the people who are investing. Coz they can go to them and tell them about doing an automated market maker which means like 10 or 20% of the ico proceeds gets locked up into this trading bot that exists into perpetuity in the blockchain and maintains a certain reserved ratio of Steem to SMT. and it's going to constantly be trading that back and forth to provide liquidity to the people in the smt community. That makes it valuable for all the people who come to the smt. It also extremely valuable to the Steem holder because Steem gets locked up into perpetuity. So supply is decreasing, demand might be staying the same or increasing so when the supply goes down and the demand stays constant, price is affected by gong up. So, hypothetically, this is a value driver.
Influence Sharing
As SMTs get created, there is also this fourth concept called influence sharing. The SMT creator can specify other tokens probably Steem and use this token, Steem, to help bootstrap the new token. And Steem is going to control just for instance a certain percentage or a portion of the rewards pool of the new token, of the SMT. What that does is it gives new utility to Steem holders. They now have another set of tokens to vote on and distribute so there’s more utility. That arguably creates more demand so, that's a really good thing.
Steem: The World’s Advertising Network.
The fifth and probably the most important aspect of the value cycles in all of this is the idea that steam and smart media tokens really are the world's advertising network. These tokens are what get laid across applications and they have this functional properties underneath everything that cause interfaces to basically sort order posts in terms of their value and once you have posts sorted in their order a value, then any blogger, curator, content creator of any sort, video creator or an advertiser can look at that sort order of value and probably buy some more Smartmedia Token or Steem in order to promote their post higher up in that sort order and thereby get more attention which may help them sell more of their products. That’s a good thing for them as a return on investment. So, essentially as if it is a very natural, very sustainable flow of value that’s caused by these tokens where value is coming in. They buy or rent Steem to promote content that causes sales in other places. And that's analogous with the traditional online advertising businesses like Facebook, Reddit and Twitter. So, all of that is happening behind the scenes where there’s no company. -That’s what’s so new about this and what makes it so possibly pervasive across the internet. As SMTs proliferate, as they become ubiquitous companies like The New York Times, established players will use these to basically become the implicit backbone to a lot of their advertising.
So there. I hope I was able to convey the message to you. It's not easy to comment on how exactly things have changed in the last few months so please let me know your thoughts based on these information. Thanks!
References:
Video
SMT To Do List
Please upvote, resteem and follow me, thank you.
Wow, there's a lot to absorb here. In a few years, kids are going to need entirely new Economics 101 textbooks to explain blockchain economics! For example, I'm still getting those dreaded "bandwidth warnings" mentioned in Point #1 - but as Ned explains in his video, it's really a way to avoid charging me a transaction fee. I may be frustrated by having my bandwidth taken away for a short time, but it's a lot more preferable than having to pay a fee...
It's a great Idea! Blockchain should also be taught in computer colleges.
that's great information
upvoted and follow
the advances of the blockchain are indefensible, hopefully the holders of world power accept that the world is changing, otherwise even a war could be unleashed.
dear @hiroyamagishi another nice post
Thanks!
WOW great post !
Thank you for breaking this down. I can't wait for thus SMT to be launched
Mee too! It will go mainstream really soon.
Nice artical, and good information
I'm really amazed how technology is changing faster. A lot of fear, uncertain and doubt. I'd say trust the trend.
For this kind of information, I think Im towards the FOMO side, unless one shows holes in the technology. Thanks for sharing your idea.
You got a 22.07% upvote from @buildawhale courtesy of @hiroyamagishi!
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thank you for sharing