Actifit And The Upvote Economy

It is really fascinating to watch the development of the Steem ecosystem develop and the innovations that we are seeing.

I maintain that we are entering a new era of humanity. We are seeing the foundation of our society shaken, which is a good thing. For the last couple hundred years, we operated under an economic system that ended up massively favoring a handful of people. This is all about to change.

Welcome to the new of age of crypto-economics.

Many assert that cryptocurrency has no value because it is "created out of thin air". While it is true that the currencies are created out of thin air, that does not make them worthless. In fact, those who are casting the accusations are usually the ones benefiting from the present system. What is rarely mentioned by the mainstream is that fiat currency is also created out of nothing.

Some of the moves be @actifit of late exemplify what is starting to take place. The possibilities of cryoto-economics are endless. I feel we are going to be truly amazed what takes place over the next decade.

Earlier in the week it was announced that Actifit was implementing a program that allowed users to exchange some of their AFIT tokens for an upvote. Essentially, users were exchanging their AFIT for STEEM/SBD.

Source

Let us follow the circular process that is underway.

People earn AFIT tokens for their activity as tracked by the Actifit application. These tokens are not located on an exchange at this point, hence are considered worthless. For the moment, we will leave aside the prospects of the SMT protocol and the addition to exchanges.

Many look at cryptocurrency and question how does it get converted into fiat. This is sensible since we operate in a world that accepts fiat as payment. With the AFIT, this is not possible. Therefore, we see the conversion to STEEM via an upvote.

Of course, this is not a direct exchange since it is swapped for an upvote that carries the value. Thus, we see the "exchange" really being an incentive to do something. In this instance, it is posting on Steem which, in theory, adds to the ecosystem. One of the foundations of crypto-economics is incentivizing behavior.

The AFIT token was something that, for practical purposes, has no value and was created out of thin air. However, by implementing this option, it can now be turned, to some degree into STEEM.

What is STEEM?

This is another cryptocurrency that was manufactured out of nothing. It does have the advantage that it is around a bit longer and is on a few exchanges. Someone could turn STEEM into fiat although, as we know, this still is not an easy process.

That said, STEEM does have value itself. On this platform, it can offer a number of benefits to those who have it.

Powering Up

STEEM can be used to power up in the form of Steem Power. This enhances ones standing on the platform. It also increases the voting power that one has which increases curation rewards. Essentially, the more Steem Power one has, the greater the return one tends to receive for his/her efforts on the platform.

Promotion

Many object to this but it is common on here. People have the option of using STEEM to increase the exposure of posts. It is a form of promotion although most look at it as manipulating the system. Many applications started to do this when they have a major announcement. This gets them on the trending page which creates a bigger following.

All applications, along with individuals, are vying for attention.

Delegation

The delegation mechanism is really a profound function. This allows one to support others by allowing them to "use" one's SP. Initially we saw a great deal of this done to individuals, mostly by Steemit. They delegated some SP to each new account in an effort to assist them in getting started.

Recently, we saw the introduction of delegation to applications in return for an daily amount of that native token. In fact, many delegated to Actifit in return for a certain amount of AFIT each day. This allows for people to increase their holdings of other tokens, growing their cryptocurrency base.

Conversion to other currencies

While moving STEEM to fiat is not easy, converting it to other major tokens is rather simple. There are a number of exchanges that will allow swaps from STEEM to BTC, ETH, LTC, EOS, and BCH. As the crypto-economy grows, the need to roll into fiat will lessen.

We are seeing a growth in the number of places that accept Bitcoin, as an example. Since moving from STEEM to BTC is so simple, as that platform grows, this one is too. The next best thing to having your currency accepted everywhere is to be one step removed from the one that is.

Participate in an IEO

@steemhunt just announced the dates for the first two rounds of its IEO. One of the exchanges, Probit, will allow people to participate using STEEM. This is the first time STEEM could be used to participate in an IEO/ICO. As the Steem ecosystem grows, expect this idea to spread.

That same exchange is going to be hosting tokens for a number of other Steem based applications. Thus, there is a good chance we see something similar with their tokens

I know there are other uses that I missed. Nevertheless, this is not a post focused upon all the places STEEM can be spent. Rather, I wanted to point out that the value of STEEM on this front is increasing with time. As it is tied into the entire crypto ecosystem, as Bitcoin and others find more use cases, that only enhances the options with STEEM.

Thus, we see something that was created out of thin air becoming worth something.

Of course, at the core of Steem is the upvote. Voting power is extremely valuable and that is tied to the amount of Steem Power. Actifit's program is limited only to the amount of SP it has delegated to it. @mcfarhat mentioned that they are upvoting about 40 posts a day to fulfill the swap. There is a need for more but the amount of SP delegated to them limits it. This might be a reason people will want to consider delegating additional SP to this cause. The more SP they have, the more accounts can be upvoted under this program while maintaining the high value on the each vote.

To complete the circle, those who do swap AFIT for an upvote which rewards in STEEM could turn around and delegate that back in the form of SP to the Actifit account. This will enable the individual to earn more AFIT, completing the circle.

This is just one example that is emerging through this new economy. Over the next few years, we are going to see many more innovations using the upvote and reward system. We are truly only limited by our imagination. As cryptocurrency usage spreads, we see how tokens that are part of the Steem eocsystem benefit.

We are all part of a larger whole that is radically transforming things.

The fun is just getting started. Hang on for a wild ride.

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