The wonderful thing about an open ecosystem is the flow of ideas. When you have a bunch of creative people working on their individual projects, innovations emerge that can help the entire ecosystem. This is how we can compound our growth.
Here is a scenario:
You delegate some SP to a particular project which provides some type of return. You get paid at periodic intervals, say weekly, for your delegation. It comes in the form of STEEM. Each week, there is an entry in your wallet which tells you how much you received.
This is pretty common and most projects do something similar to this.
The question then arises, what happens if you want to support the project further? Obviously, you take your STEEM, power it up, and delegate some more.
Again, this is fairly common. I know I delegated to many projects at different intervals as my account grew.
One drawback to this approach is that you have to manually power up the STEEM you are paid. This might not be a big deal since many of us are doing that with whatever enters our wallet.
The other is the 13 week power down period. Whenever you power up, the commitment is being made that those funds will only be available to in 1/13th increments. If it is the delegated amount, add another week for the delegation to be returned to you.
What if there was a way to keep delegating, without having to go through all that?
To start, it created a reinvestment program. This only makes sense. If one likes the project, why take the proceeds out? Just keep them flowing back into that project and have the stake of both yourself and the platform grow together.
What really makes this innovative is the creation of a token on Steem-Engine to tie this all together. Instead of having the payout flow back in the form of STEEM, one gets the TPU token. Each TPU is backed by one SP that
Each token is currently backed by 1 STEEM POWER so if you own 1 TPU, you will receive the same profit as from 1 STEEM POWER delegated.
Essentially, we are being able to delegate without having to go through the hassle of powering up.
And here comes the proverbial "but wait, there's more":
But wait, there's more.
The TPU, which is the same as a 1 delegated SP unit, is traded on Steem-Engine.
This means that the TPU can be swapped into STEEM at anytime. There is no 13 weeks power down period. The payouts that were fed back into the platform were converted into TPU.
Second "But wait there's more" upcoming.
But wait there's more.
The 1:1 ratio of SP to TPU is only the start. Each day that increases 0.1% meaning that this option grows was stake in the platform a bit quicker. It much be noted that this will continue as long as there is the STEEM to back up the increase.
Here we see a way to reward those who are committed to this platform with extra stake through the TPU token, something that does not take place with the usual SP delegation.
The key to this is that we can find innovative ideas in many different places. Whether one is a fan of voting bots or not is not the point. What I find exciting is the potential that can come from an idea like this. Where else can this same concept be applied? And did the
This is one of the most exciting aspects of the Steem ecosystem. By having the ability to create tokens, either via SCOT or SMT when that appears, people can utilize their creativity to find new ways to reward their users. This is a radical shift from the traditional business model we presently see which seeks to get as much as possible from each user.
Under this paradigm shift, the applications that continually find ways to reward their users with added incentives are going to succeed.
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