For a long time, I said I was not really interested in launching an SMT, however, one is free to change their minds right! Woman’s Prerogative and all that.
Well over the last while I have been thinking a little different about the possibility of launching an SMT but I am really stuck on formulating the idea. I have all these bits going on in my head but for some reason, I just can’t seem to tie the bits together. So this post is some random thoughts I have been having, without giving away my idea. Although most of you will probably be able to guess.
The economic model for steem is not the most successful model in the world. It’s extremely innovative and has some fantastic pros, but it also has some cons too. It's hard to see how steem can increase in value when there is always more money going out than coming in. And if you don’t want to power up, there is little else you can do with steem other than selling it. There are only a handful of products and services that you can buy with steem and so there is not economic recycle of liquid steem. There is no steem economy. But then steem is not a payment token.
I like the idea of payment tokens
When I look at Steemmonsters success, I wonder to myself how much of this is down to the fact you can buy cards with Paypal? Accessing Crypto is a barrier to entry. It's way to complicated to go mainstream.
Buying tokens and in-game currency with fiat is the norm for the younger generations. This is not limited to gamers as both Andriod and Apple apps have built-in purchases. Children are exposed to this from an early age and it is normal for them.
A consistent inflow of fiat is necessary.
Buy a token with fiat but unable to sell it for fiat.
People need a reason, other than speculation to buy tokens. A benefit (that is not exchange for cash)
I like that you can delegate power with smts.
I like that new tokens can be distributed via upvotes.
I need to start some sort of whitepaper.
I am missing a lot of skills. What other skills do I need to make this a success?
Will my technical inabilities hold me back?
How will communities and SMTs tie in together?
I need to start asking questions about SMT options and possibilities. But I don’t know what questions to ask.
I have no.idea where to start witb this. Maybe we need a working group for us chicas trying to figure it out. And yes we can change our minds. I said I wouldn't do nitrous condenser but I did..
Paula... you definitely have a market. You are respected there. If you create a SMT you will likely have no competition (at first).
But you are right asking how should you define your SMT (the whitepaper, the community rules - yes, if you create a SMT you would likely tie it up with your community for the PoB part), to become a thriving SMT ecosystem.
You also identified a great example and the biggest problem, from this point of view: lack of functional economy.
Will you have enough "sinks" to compensate for the "faucets"? If there aren't many and big enough sinks, you need smaller faucets. Otherwise there will be selling pressure on the SMT.
In theory, you don't need technical skills to be able to create a SMT. In practice, the ongoing process will probably require at some points the aid of someone who knows the inside of SMTs (and maybe exchanges).
Dear @gadrian
Interesting comment.
Question I would ask: is it good? Lack of competition = being pioneer, which is difficult and expensive and hardly ever pays back.
Indeed. However this can be reduced by lack of airdrops (the worst marketing method out there I can imagine). It's crutial is to make long term believers to get involved as an investors. People who want to support your project and idea. Not those who care about ROI.
I would value 10k usd raised from strong supporters way more than 100k raised from users focusing on returns.
Yours, Piotr
Competition is healthy, maybe it would push all parties to do better things and reduce marketing costs for awareness of the niche. But should we push once again the SteemMonsters example? First game on Steem, launched unfinished, where is it now? It's true, it took a great partnership and tons of work to make this happen. None of them separately would have had the same success, in my opinion.
Few care only about the project and idea, maybe except the creators themselves, because it's their baby. Eventually all will want to see some ROI, the only difference is the timeframe. If they want to see it in 1 month, 1 year, 5 years, 10 years, ongoing (residual) income after a certain term etc.
But I understand what you are saying. In the initial phase, before the project really lifts off, it's way better to have long-term oriented investors in it instead of people looking for immediate return or daily income.
If people (i.e. investors) would understand that, maybe the price of STEEM related tokens would catch up to development.
Good morning @gadrian
Would you mind if I take few minutes of your time? (I hope I'm not asking this question to often ;)
Anyway .... together with few core members of project.hope team - we'te trying to promote our recent publication: an article explaining economy behind our non-profit community project build on STEEM blockchain.
Perhaps I could ask you to spare few minutes and check it out and share your feedback with me.
I would absolutely appreciate it a lot. I read all comments and I drop solid upvote on each valuable one.
Link: https://steemit.com/hive-175254/@project.hope/3-ways-of-joining-our-efforts-project-hope-economy-explained
Yours, Piotr
"Will you have enough "sinks" to compensate for the "faucets"? If there aren't many and big enough sinks, you need smaller faucets. Otherwise, there will be selling pressure on the SMT."
I was thinking something on the lines of this, but it went out of my mind when I was doing the post.
Dear @paulag you are a very wise and able person. You will be successful in your mission if you launch any smt. It is up to you what you want to do and what your plans are. Others can only help you to make things better.
Best of luck?
Im not sure what my plans are, but Im open to trying new things, and this is new.
Dear @paulag, frankly speaking i cannot tell you what Is right and what Is wrong in this idea, i see too many coins in steem-engine are going to be shit coins even they have good base behaind, anyway i would like to consider to contact @crypto.piotr which Is a very wise guy can help you on this critical decision.
If you want you can use @steem-bounty service too in order to get qualified answers...
Posted using Partiko Android
yep I also see too many flops and obviously want to avoid that for sure :-)
Ya I’m on the fence with SMT’s. They seem ok in theory but if you keep talking about and saying ‘wait until SMT’s!!!!!.....’ it tends to get hyped up, and kind of a let down. Especially if they take forever to come out lol, as the mythical tokens have.
hi @cmplxty
What does it mean?
well there is that all right, but I think smts will happen and from what I understand it will be early next year
Why not hey... Fiddle around with the smt's atleast hey... After all they are there for the community.
I like your list. What economic activity will your proposed SMT tokenize? How does value flow in that economy that needs tokenization? Do those value flows need decoupling from the outside? How will the circulating token supply be regulated? To what extent do you care about exchange value of token with the outside?
"To what extent do you care about exchange value of token with the outside?" for this part the answer is I dont care. they will have an internal value only but I dont know if that can exist
I have to admit I've started buying untamed booster packs using paypal.
Why?
A. Because I haven't found a more convenient way to enter the crypto space using PayPal.
B. I know the value of the booster packs will eventually go up (unless splinterlands falls apart for some reason) and I can sell it for some nice Steem with very little upcharge (I think 1% to remove from Steem-Engine).
I think the largest part of starting a successful SMT is figuring out what will give it value.
value seems to be the hidden key
@paulag
I understand only part of what you've said in your post, i.e. that SMTS is a way of building Steem. I think.
I am not of the generation of in-app purchases and nor am I a gamer. Perhaps that's why I don't get SMTs. I'm also unsure about communities and perhaps that's the salmon in me.
That said, @gadrian makes some interesting and valuable points. I would also suggest that if you did go that route, as with all projects, it'll require time and managing. I shall follow with interest as I'd really like to understand the concepts and the rationales behind both.
Good luck!
Hi Fiona!
If you are involved and understand tribes, you will understand SMTs + communities. They are similar, with some differences granted, but still, the jump from one to another should be pretty smooth.
I think I gotta understand the concepts and rationale behind my own thinking too heheheheheh
Hahahaha! @paula, I get you. Very interesting comments on this post. Some confirm my confusion / validate my skepticism.
I have to say @gadrian - I'm neither involved in, nor understand tribes...instinctively I stay away. I'm not a herd animal.
Hi @paulag, firstly there is a small but growing group of tokens that can earn without powering up - like MAPR token - so there are the seeds of steem-based fintech.
From my POV, as you seem unsure (or not saying) what the purpose will be, then focus on the structure - how the money flows. There are many vibrant communities with token prices that tank. How does that happen? just bad economics.
Feel free to come chat on discord.
Ah man I never heard of MAPR token and tokens on steem that are not powered up. now I have more to find out about. Dohhhhh!
You recall, ages ago, I ran the MAP community, then it slowly morphed into a fintech venture as I noted that the community needed to earn more in order to give out more to its members. Many members went on to build their own niches but MAPR carried on, then became a token once SE started. Been generating some 17-21% APR ever since. Coming up to its 2nd birthday!
I know, I need better marketing - not my strong point :-(
With SMT coming to Steem, you will not need to be a technical skil to launch a token. You do need to understand ICO funding and build a community around your project.
Dear @paulag
I'm quite amazed that you think about launching your own SMT, since noone seem to yet know how and when will SMT roll out.
Personally I'm full of doubts if this product will be usable right away, or will it require some extra work and will be buggy (considering that STINC is behind SMT isn't very reassuring - if it would be team building steempeak.com then I would have more faith).
Correct me if I'm wrong - I believe that it's important to focus on building solid token economy. One that would bring some usage and value to your own token (something that current SE tokens greately are failing at).
Such a good point. However I got confused once I've read those words:
Would that mean that mostly payment tokens need to have an economy implented? I'm wondering what did you mean.
Great read. Upvoted already :)
Yours, Piotr
A payment token would be a token use to pay for goods and services. First, you need a product to sell. Steem is more of an equity token as it represents vests and gives benefits to holding vests.
hi @paulag
I was just going through some older comments and I noticed your reply (for which I never thanked you).
So .... late (but honest) thanks :)
Cheers, Piotr
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