I think that the biggest thing that all of the potential SMT issuers need to consider is this: What will attract people to buy these tokens? I can see a number of Dapps airdropping tokens on their users. Distribution of a lot of these SMT's that are already in the works is being done quite quickly at the moment. However, it is one thing to distribute an SMT to users of your Dapp, It is a totally different proposition to draw people to want to buy those tokens.
Let me explain why this is so important in my view. If lots of users, and Steemian's in general hold tokens in your future Dapp, then that's great. But what are those tokens going to be used for. The Dapp will probably have to keep giving them out to keep encouraging users on their App.
I will use @dlike as an example. I think Dlike is a good App, and has great potential. I would like to see its users put in a bit more effort at times, and provide their own thoughts on the link they share, instead of just posting a link and that's it. However, it has potential as people on social media like to share articles and things they enjoy. At the moment, Dlike tokens are relatively easy to earn. Share a few links each day, and comment on a few links from other people and you can quickly stockpile a bunch of future SMT's. That's great, but what are you going to do with them? When they are converted to real life tokens that have a trading pair with STEEM and an internal market that is easy to use, how many of those tokens will just get dumped on the market? Who will buy them? Why? This is not a criticism aimed at Dlike specifically, just a general observation. I used the case of Dlike purely for example purposes.
I think that many of these Dapp's need to carefully consider the purpose and future use of their SMT's. What will be the draw-card for people to want to HODL your token long term. What will make people want to buy more. If the main draw-card will be that users can redeem tokens for Steem up-votes, then that is just another form of vote buying. The tokens need a value, they need to have a purpose beyond just distribution and as a marketing tool to get more people to use your App.
Again, I believe there is one Dapp that is ahead of it's peers in this regard. And again that is @steemhunt. They are currently distributing tokens, and where one of the first to do so. They are keen to put their tokens in the hands of Steemians and users of their site. Terrific, good stuff. But they have a plan for beyond just distribution. The tokens they are airdropping at the moment will have utility, and a significant amount of utility I believe. @steemhunt is just a small part of their plans,
From their website:
- Hunters earn HUNT tokens by sharing/up-voting cool new products on Steemhunt community. Makers can also be hunters by sharing their own products.
- Makers buy HUNT tokens to post bounties or sell products with discounted prices in Reviewhunt in return for quality reviews. Hunters can use HUNT tokens to purchase products or earn tokens from makers.
- Makers run crowdfunding campaigns in Ideahunt. Hunters can use their HUNT tokens to participate/purchase products.
These are quotes from their site and very illustrative. Two out of three of their stated plans for the HUNT token are about uses of them. They are the utility and the reason why people will want to buy and hold HUNT tokens.
This is the most important aspect I think many SMT's need to put more time into considering, or explain better. What is your SMT's purpose??? What is the economy that you are trying to create for your token. I really believe SMT's are going to drive the future of STEEM. But I also believe many will fail. That is because it is easy to give people free tokens (or practically free, just requiring a bit of effort on your App). What is harder and requires a hell of a lot more planning and foresight is building a use-case that people will buy into and drive demand for the token beyond just free supply.
I hope that you find this response helpful,
Thanks for reading,
John.
Excellent response, very thorough and that is just the beginning. Having to structure their own airdrop and all of that has to exhaustive but incredible work they are pulling off and hopefully the day will be here soon to where we can choose to how our posts are paid in liquid value, that is when the real move begins. It's great that steemhunt is out in the lead on this I personally have not tried it yet due to being immersed in the steemmonsters right now but I have heard some great things already. Yep, exactly the swap for value is the excitement that people can truly get behind. If I issue a token and just airdrop it like a pamphlet or garbage token it will be dust, which is what it's worth. But if I have a token that is guaranteed beyond the transaction of the coin (lol, you hit the nail on the head I think a lot of them will be buy this token because it's new and it's mine and I like money) that will be the key and to not have to always be purely at the mercy of the steemit economy only but also insulated to a degree in a portion of your post payout in something that shares legitimate value and the will of the holder being carried out rather than having a token and creating a will it be the other way around (bidbots, etc).
Hey, thanks for your awesome comment. The use, the purpose is most important. I've gone opposite to you and avoided steemmonsters. I think it is an excellent project that I would spend way too much money on if I got involved. I do believe that their SMT will be strong because it will have a solid use case.
Thanks for your terrific input.
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Great post. Steemhunt's the most innovative product on Steem in my opinion!
Very much agree. I also admire what you are building here with musing @jonching. Thank you for appreciating my post.
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