We all know there are many advantages to holding STEEM in your account as Steem Power (SP). SP is a great hedge against the 9.5% annual inflation rate that exists with the creation of more tokens. At the same time, it allows us to grow our accounts and those of others quicker since our voting power increases. SP helps to take STEEM out of circulation which could have an impact on the price it trades at. Finally, SP helps the stability of the STEEM blockchain since a great deal of STEEM is essentially "reinvested" .
Now me might be able to add one more advantage to holding SP.
Could it be possible that SP actually gets you more tokens? Essentially, your STEEM holding could multiply your token holdings.
Most of us are aware of Smart Media Tokens (SMTs). That is a protocol that is being designed to create other tokens that go on the steem blockchain. These tokens are created to give the owners of content creation sites a "turnkey" operation through which they can implement the same curation/reward systemused here on Steemit.
I read a comment that was made the other day by @robert-call in a post done by @honeydew2002. Now some of this is speculation yet it appears we are seeing some consistency with these projections.
At present, there are two tokens that being created to participate on the curation/reward system. Both have announced that they are giving STEEM holders some of the new tokens. While the details are a bit sketchy as to the who, how, and how much per, we do have a few things outlined.
The first is from the article by @honeydew2002 who pointed out Vice's 400M airdrop of its new token to STEEM holders mentioned in the white paper. Again, we do not have many details other than knowing that STEEM is going to entitle some holders to the new Vice Network Token.
Here is article:
https://steemit.com/steem/@honeydew2002/steem-holders-get-free-money
Vice is really confusing to me since their white paper reads like the Steem Smart Media Token White Paper. I am not sure if there is going to be a fork, if Vice is going to set up on top of Steem, or they just hijacked the entire protocol (open source makes that easy) and is doing it on their own. Of course, the fact that 400M tokens are going to STEEM holders means there is some agreement.
One that does not confuse me was the first token announced using the SMT protocol, called Appics. This is an application that is meant to rival instagram.
Here is the article announcing that token:
By the way, for those interested, the ICO pre-sale starts today:
Here is that announcement:
https://steemit.com/dtube/@sirwinchester/b3ordsbi
Getting back to what @robert-call posted in the comment section, here is a partial quote:
Not quite. I believe they plan to take one or several "snapshots" of the STEEM blockchain and distribute tokens based on how much SP you hold. @appics announced a similar plan at Steem Fest.
Now I admit I have do not know what @appics announces at Steem Fest personally. However, based upon what is written here, it sounds like SP holders will receive Appics' tokens when they become available. Why would they do this?
Think about it for a second, it makes perfect sense. If you have an app that you want people to use, what better way to increase the number of users than by giving the token to an already established community who understands the curation/reward system AND showed itself to be very active. Plus, if you created an Instagram competitor, wouldn't it be good to get together with a group of people who have little hesitation in announcing their distaste for Facebook?
Obviously, this is not something that came from nowhere. Another part of @robert-call's comment was a link to a 6 month old article written by @furion. This article (and the comments) proposed some ideas for not having tokens end up in the hands of only a few people. @furion put together a concept with a few parameters as to get tokens distributed to as many Steemians as possible while also cutting out spammers and accounts created in hopes of getting free tokens.
Here is the article:
https://steemit.com/token/@furion/giveaway-as-a-token-distribution-strategy
The reason I bring this up is not to discuss the merits of any of these ideas. Rather, I wanted to show there was some conversation 6 months ago about this. Was this just an individual who put together a post or were there conversations that extended to the developers too? Were there ongoing discussions at many levels of the steemian world about this subject? I doubt very likely this was an isolated article created because @furion needed something to write about. I surmise there were discussions somewhere about it.
Here we have two tokens announced under the SMT program which will be put in the hands of Steemians. Since they are the only two announced, should we presume that all tokens created under the SMT protocol will net SP holders additional tokens? I think it could be a logical conclusion.
STEEM is the most important token on this blockchain because all bandwidth is priced that way. There is no other avenue to acquire bandwidth other than to have STEEM. At present, over 70% of all STEEM is held in SP. That means that SP holders are really the ones at the core of this blockchain. Holders of SP are not solely investors but also active participants. That means anyone joining this ecosystem will benefit from the efforts of the SP holders. Of course, SP holders have a huge incentive for helping make a tokened app successful since it only increases the value of STEEM (a more successful app will require more bandwidth, priced in....STEEM).
In closing, there is some speculation here as to what is really going to occur. However, there were some facts delivered from both a white paper and directly from the creators of a token themselves. I think it is safe to say these two tokens are going to be given to Steemians and you can expect more in the future. How this all pans out remains to be seen.
Nevertheless, it appears this is a huge bonus to those holding SP.
STEEM is the gift that keeps on giving.
If you found this article informative, please give it an upvote and a re-steem.
Pictures by Google Images.
That is okay...we dont shoot the messenger for being mistaken. LOL
It is a difficult situation to figure out. At first, I thought it made sense for them to be on the Steem blockchain then I read the white paper and realized it was a fork....why?
I guess they figure they can do it better....
Maybe they can...or maybe they will look to close the fork in 6 months.
"If it ain't broke."
Once they get further along maybe VICE will see the light on SMT tokens.
Reading the Vice white paper, it seems they already do...they are using the protocol to develop tokens on their blockchain..it is identical to the SMT white paper (the vice one that is).
That said, I doubt a site like the Huffington Post would want to be on the Vice blockchain...not exactly the image they want to promote.
Something odd happened there...not sure what it is....
Oh well, we might never find out.
Great comment that inspired this article though....We are all kind of searching in the dark.
I could see a use for both. STEEM Light... and STEEM Dark. Nobody is going to use their primary account to upvote porn anyway. hehe 😁
I contacted the Vice Token team and they confirmed that they are NOT using an SMT. They are creating their own fork of the steem blockchain code.
This is potentially a huge blow to steem since they seem like they will have much better marketing than we do and will bring a huge audience to Vice instead of steem.
I think they are airdropping us some tokens to try to placate us.
Thank you for the confirmation. From reading the white paper, it appeared they were doing something like that. It read too much like the SMT white paper when explaining other tokens being created on top of it etc....
Yes I agree it is a blow. It appears that Vice is doing the same thing as STEEM. The Vice token will provide the bandwidth. I am not sure Vice will be ultra successful attracting the general sites like they discuss but there is a chance they clean up on the adult sites which are large numbers of people.
That is the risk in blockchain...everything is open source.
Still stand on your $100/ STEEM price? It doesn't seem reachable of no one uses SMTs.. or if they just copy the technology.. fork the chain.. or whatever it is they're doing
I still believe $100 is pessimistic. They are giving up on network effects just to have more greedy control. And that is the purpose, control. Im not going to direct link unless someone sqys they want me to since its nsfw, but if you go over to dlive crypt0hoe (@canditits95) has a good discussion on it.
EDIT:
Actually, no reason to weird about linking, you can make your own choice on whether you are comfortable learning about a porn coin from a naked girl:
https://www.dlive.io/#/video/canditits95/2f3601b0-e86c-11e7-a1f3-03b38c48dfd2 NSFW
Trust me I'm comfortable #grownassman
Absolutely.
Look at bitcoin and eth forks and what happened to the main blockchains...they kept going up.
Not all are able to fork a blockchain...plus people have to use the new blockchain and if they dont, what happens? Look at BTG...is anyone using that?
Few realize how difficult blockchain technology is and the barriers encountered. Being involved with manna I see what takes place with the tech people and how it is a challenge to keep these projects from falling apart. Lots of coders and programmers out there, few blockchain/cryptographic experts in comparison.
This is why a lot of the ICOs end up collapsing...the non-scam ones do not realize the challenge ahead and what it takes to successfully pull it off.
Ok.. that's why I'm asking.. I have read 100s of posts about it and still barely understand basic blockchain... you start talking about forking and I get hungry or horny... sometimes both lol
Porn to placate us hahaha. I am very interested to see what the price will be though.
Is it to placate or seduce us?
Both!
I've already discussed this withan adult actress trying to make the move to STEEM. They will likely have short term success, but the "steem of porn" is just called steem.
It will be very interesting to hear steemit inc's take on this.
As I understand it they are focusing a very large proportion of their development resource on SMT's - and in turn staking a large chunk of the future prosperity of steem on the success of SMTs.
I am guessing the idea of another organisation just picking up the idea and walking away with it was not in the screenplay of "Steem to the Moon - the SMTs are coming".
Hopefully APPICs will be storming into action very soon to demonstrate to the world the power of the steem based SMTs.
I would believe that the development team was aware that any organization could enter and fork the blockchain. What might be of help is that while Vice has intentions of doing what was written about in the SMT white paper, how many non porn sites want to use a blockchain associated with that? This is especially true when you have the exact same options with steem.
I would love to hear @ned's thoughts on this.
Yes I do not particularly see it as a bad separation.
There might be 'social baggage' associated with Vice that could in some arenas be a negative for steem. So an air gap between them would be no bad thing.
Pocket (@pocket-a) by @biophil was the first token (not SMT) that airdropped on the STEEM users who claimed it. POCKET is also traded at bitshares.org exchange against BTS. Whoever with a Steemit account claimed within the time limit, got 1M POCKET tokens. I think that this is the fair distribution since it is going to the active users rather than skewedly dropping on inactive large SP holders.
That is a good way to do it @riseofth. As I stated, no idea what any of this will end up looking like.
Who made the decision to airdrop it that way? I presume @biophil.
Yes.
Oh wow! If that's the case then that's truly a wonderful thing! Really though, it does make sense to airdrop to SP holders, that way, they're technically forking from STEEM and branching out on their own. I wonder though, how would the indivual tokens' price be dictated? Is it based off of STEEM or would it just act like some sort of bottleneck like what BTC and ETH is to many cryptocurrencies. Truly an amazing time to be active on the STEEM blockchain. So many amazing developments under way!
I imagine the Vice people set the price of their pre-ICO campaign and then the ICO price to see if they get it.
Most ICOs I saw advertised have escalating phases....maybe a 2-4 campaign for each phase.
We should now in a month..I think it kicks off the beginning of Feb.
What I found was that there really isn't something called SP. There are VESTS and on the wallet interface the value of your VESTS is shown in SP. It's much like how reputation is reduced to a simple number while it's really a huge number like 5,352,931,561,655 (My current reputation).
Over time with more VESTS get created, the price of VESTS also increase. So your SP increases over time. Holding your STEEM in SP (AKA converting them to VESTS) is actually a way to earn tiny amounts of passive income.
That is very true @vimukthi SP is really MVests.
It is also the reason why powering down now and then powering up at a later date with the same amount of STEEM does not net the same. After 6 months, the vest rate per STEEM will have changed. The UI puts it in SP which is a bit misleading...but then again, payouts on posts arent in USD either.
Can you imagine the confusion if we started talking MVests? This place is a difficult enough transition for most newer people.
It'd be nice to make them slowly understand those things. Maybe someone could clear that up in the FAQ. When I first read about the 3 currencies, I was like "what the hell?" so maybe you could write few articles on the subject :-)
I would although that is something I saw many write...it seems to be a well covered subject....
Plus I am like you...screw the easy stuff, lets drill down into the rabbit hole....fuck researching the three currencies, lets find out about MVests. LOL
WTH is right!!! I'm less than a week in and I'm mostly lost. Participating and learning, but it's confusing
WTH is right!!! I'm less than a week in and I'm mostly lost. Participating and learning, but it's confusing
I'm one of the fast learners and considerably tech savvy. But it still took me some time. Just hang around the platform and you'll eventually figure everything out. Don't feel bad if you are confused. Many of us intially were a little confused.
Happy steeming!
Thanks. Does it glitch often? It said there was a transmission error when I initially posted this comment so I tried again. I appologize for the double comment. Thanks for being encouraging.
Few months ago there were some problems. I also had few glitches last few days. But they are not that common. We are going to be seeing several new upgrades soon. So things will get better.
Good stuff here!
I think you and these writers could be on to something, and the point you make about distributing to a community already active and knowledgeable of how things work could be really important.
I'm aware that (unless the SMT apps. choose otherwise), we should be able to support this content with our Steem Power as well, so I'm not sure how that fits into things.
Really liking the idea of SP holders being given a bunch of 'local' tokens though to get the ball rolling right away. Cheers!
Thanks for the comment @abh12345.
That is my understanding also; that SP will apply to those apps created using the SMT protocol. That would make sense since an app like that, even with another token, is still reading the same blockchain (similar to DTube etc...). Of course, the app can choose the percentage of reward and alter things like that but I think the basic system is in place for any token creator.
Perhaps, since every SMT created token is paired with STEEM, SP can be used since there is an instant conversion rate available. Have none of that token but 1000 SP, if it is a 3 for 1 swap on the exchange, it is like you have the VP of 3000 of that token. Just speculation on my part.
I believe that we are doing great way, I do not understand everything, I expect some answers as you do
Great post as always @taskmaster4450... i just dont quiet understand, does this have anything to do with EOS?
I think the Steem creators are more intented to create block-chain software to build on... will keep reading about Vice...
Steem, Bitshares and EOS were all started by the same developer.
Outside of that, there is no connection between the blockchain although there is word that BTS and EOS might join forces in some form.
As I understand, steem is now totally separate especially since @dan moved on to work on other projects.
I saw an interview with @dan explaining there were not separated, that Steem need growth in User Expirience terms and design concepts, which he is no longer really needed, so he went to create EOS in good terms to create a Crypto-App that can link any programmer (many code sources) to the crypto-currency world...
Thanks for this post, @taskmaster4450, im really going into this new release... just for curiosity, are you getting into the ICO?
Cheers!
I think if we truly believe in steem we should have most of our holding in steem power.
Very interesting article. You told me a lot of new things for me. My faith in Steem has become even greater. Resteem, let me, and my followers, learn this great news. Happy New Year holidays. Good luck to you and good.
Do all SMT-using applications have to give their SMTs to SP holders or is it a voluntary action? And for this ICOs, can you participate with Steem or SBDs? And why would you, if you get the tokens for free anyway?
I don't think are required to.
Hi @taskmaster4450 thanks for sharing! The media token aspect with steem is quiet new to me so it's nice to read about it. If the media token market evolved and each user will need more and more bandwidth, wouldn't the bandwidth cap be a bottleneck? Today maybe 1 gb is enough for me as I only need to use steem. What would happens when I use 10 sites built upon steem that all use my total bandwidth? I love your informing articles and would love to read more about bandwidth and how the bandwidth cap scale (scalability issues?)
Thanks!
The white paper said that the steem blockchain can handle 10K transactions per second while I saw headlines that people believe it is already able to handle 100K.
With data packets flying through so quickly, it enables steem to handle a ton of traffic. I am not sure at what point scaling is required but, for now, it looks like there is still a ton of room left.
Thanks for getting back to me. I was thinking more about how the system work per user. Like the bandwidth I got? Do this bandwidth scale? I just think that each user will user more and more bandwidt so it would be very nice to have a better understanding about how the steem blockchain regulate this.
I dont know how they operate. I do know as you contribute more to the steemit site and this blockchain, your bandwidth grows. So over time, you will garner more bandwidth.
As for the technical dynamics, I am not aware of the specifics.
If we will get free SMTs this will be very nice, but I'm still not sure I understand how they will distribute them equally and prevent the steem whales in getting the majority of them.
I am not sure that has been determined or if it will be.
The article I linked was just a suggestion...there is nothing that says it will be embraced.
At this point, many of the particulars are being speculated upon....we honestly have no idea what the breakdown will look like.
Anyways, to keep it simple: I hope you're right and we get free stuff :)
And here I wad thinking you were gonna give me a simple explication lol.. I was asking about it yesterday on someone's post how that worked.. wether it was people holding STEEM or SP... no one seems to know for sure.. although SP makes more sense..
You think I achieved 128K words in comments in a week writing simple?
That isnt in my DNA LOL
Trust me I know.. whenever I see you have posted a article I might like to read I put on a put of coffee and roll a fatty..
The multi-trillion crypto question is what is done first, coffee on or fattie rolled?
Always the coffee.. gotta be alert when rolling.. otherwise you'll rip the paper... and nobody wants that
Ripping rolling paper is a major party foul there.
That might get you put in time out. :)
I hate time out 😔
I'm still confuse about SMT.... simply ..you are saying that it the best time increase SP before the release of SMT?
Good question, I would love to know the answer also. As far as I can tell SMT = more demand= increase price. But the fork is confusing.
The best time to increase SP is whenever you are able to increase SP.
There are simply a ton of benefits to having more SP at your disposal.
SMT released tokens, one the protocol is finished might come out rapidly. There is no telling how many will be created in a week or a month.
Plus as was mentioned by @robert-call, the app creators take a snapshot of the blockchain at different points....they might not use the information from a week before the release...they might use a block two months old.
I wouldnt try to rig the system.
Let see...
According to my opinion, one of the most difficult problems in steemit is that most people enter to make money only. This means that there is no real added value. For those who write for money only, they will not provide real value!
Why I Love Smart Media Tokens?
Smart Media Tokens are one of the most exciting developments of the Steem platform yet!
Thank you for this post. I didn't have enough on these stuffs
Is is not usefull to hold STEEM? Better to convert it to SP?
SP enables you to have more voting power.
I convert all my SBD and STEEM to SP.
Could you explain why having more voting power is better than holding more steem? I vote and comment yet my steem power is falling. Kind of a bummer, tbh.
Good post bro
i love cryptocurrency.....
this is changing of life....
thnx for share this post about cryptocurrency
nice post i love smart media token it is good for steemit.