RE: Part 3 of Our Plan to Onboard the Masses: Smart Media Tokens
This solves the problem of selling pressure, but takes away a lot from steem. The reward pool and proof-of-brain are used to distribute steem far and wide to anyone. The more people have steem, use steem, the more valuable the currency. This is network effect.
We want communities to have their specific SMT, but we also want steem to be the currency that is everywhere on the internet. It needs to be easy to integrate in any website, and reward its users. Not just witnesses and SP holders.
Eventually, if the steem network manages to grow enough, steem might become accepted in shops, like bitcoin tried (but failed because of scaling).
Removing the reward pool and proof of brain from STEEM also eliminates the potential to be a widely used currency.
The inflation is already going down every year, and it will reach a very acceptable rate in a few years.
Actually, it doesn't take much away from steem. The steem could still be farmed by witnesses and we could make it so node operators also can mine steem and sbd.
Just kill the inflation to below 5% and golden. This doesn't make the token any harder to implement as a currency in sites. It makes it more likely to create buy pressure. As it has on eos and eth.
Especially if people need to buy steem to get smt's and power up for smart contracts.
Proof of brain is much better than mining to distribute a currency to everyone. Not everyone can or wants to mine.
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It would be cheap to mine. A node with mira is like 8-40 dollars to run.
Also proof of brain is easier to abuse. The smt's would still be pob. Also as you said no one want's to mine. Pob is mining, and they could still mine by earning SMT's and trading them for steem.
PoB is a form of human computation where the brain is the mining device.
Steem will still need to be distributed because of the requirement of RCs to use the blockchain. How it gets distributed will need to change though. Honestly, the current method of distribution isn’t the best and with HF21 it is going to get focused on a few top authors anyway, which doesn’t exactly help the situation all that much.
I could make an argument that Steem price stability is what will matter most to venders. A price that fluctuates up and down as much as Steem does is too risky for venders in my option. How do you know how to price items if the next day it drops 10%? Could you imagine if world currencies shifted like that day to day? Steem could be like the “global SMT reserve currency”. It will be trusted more than an individual SMT and therefore will be the currency of choice for traders and merchants, etc
Currency of choice for traders, maybe, for merchants, no. Steem will be hodled by companies who delegate RCs to users. This is the opposite of adoption.
Price stability can be brought to the steem we already have by introducing price sinks, especially using advertising. When the platform is more successful, we can even have a 0% inflation model where the tokens that have been burned go into the reward pool. So there will be a redistribution of steem from advertisers to users, without any inflation.
The solution to our is good sinks, not less inflation at the expense of what makes steem steem.
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