Also, there are a couple possible downsides to this, which need to be considered. One being that it will likely entrench the current witnesses in their spots forever. As they continue to collect inflation while no one else does, it will get harder and harder for them to ever be removed, not a deal breaker, but something we need to be aware of. EOS faces the same problem. A reward pool helps with this.
Then there is also the problem of exactly how much value an SMT will actually bring to steem. With Ether there are gas fees that ERC20 tokens pay to transact. Steem won't have these, which means beyond the one time steem purchase to setup the SMT and then needing a relatively small amount for resource credits, will there be enough of a 'tie-to-steem' to boost steem prices if the SMT does well?! Something I am not sure of at the moment.
I am not for or against at the moment, just trying to brainstorm a bit.
Stakeholders would receive inflation as well. But the inflation witnesses receive isn’t merely enough to keep them in their spots forever.
People would want to have it for SMTs, RCs, staking inflation and as a means of payment. There should be sinks added for SMTs which go hand in hand of decreasing the supply of Steem.