The basic principle of Smart Media Tokens, and why they will force the price of Steem to rise.
Edited from source
I have been reading a few comments recently in which bloggers have been stating, with zero supporting evidence I might add, that the forthcoming Smart Media Token (SMT) to be implemented onto the Steem Blockchain will not increase the price of Steem.
Honestly, when SMT were first announced by @ned, my first thoughts were to wonder if and how they would be beneficial for my investment in Steem and Steem Power. It is now my firm belief that when these SMT implementations start to appear, we (Steem and Steem Power holders) are potentially in for one hell of a ride.
First, a basic example of how SMT could be implemented. I'm going to use a few extracts from a blog I wrote last month, the example and use case being the Vango.com website.
Simple SMT Use Case
With the inception of Smart Media Tokens (SMT), companies like Vango now have the opportunity to monetize their online content and community with ease, thus providing economic incentives to drive subscriptions, which will in turn increase customer loyalty and sales.
The problem a company like Vango (they sell bags, tents, and other outdoor gear) may have:
- A highly competitive market with numerous global brands
- Low customer loyalty
- Lack of engagement on blogs, as shown below (zoom in required)
(Edited from source: vango.com)
10,341 Visitors to the 6 blogs listed above in which no comments have been made
So, how to change this?
Issue a Smart Media Token, and embed the a similar Votes/Comments interface that we see at Steemit/Busy.org/Chainbb/dTube/dSound/etc.
For me, this will have the dual effect of increasing customer loyalty, and more obviously, increase interactions on their blogs.
Imagine seeing an offer for a new Tent - perhaps you've been sent a link by a friend via Whatsapp.
You are a registered customer of Vango.com and you know that interacting on the site will earn you some 'VangoTokens', or Steem (more on that in a moment) - where are you going to go and check the price, and ask questions, before making a purchase?
The benefits to the price of Steem
The two key advantages I see right now are:
- Using STEEM to up-vote comments on other websites
What? You'll be able to use Steem to up-vote on these sites? Yes
Page 41 of the SMT Whitepaper says so:
At most two tokens may be specified in votable_assets. This means that each post is voted with at most three tokens (including STEEM) SMT Whitepaper
Remember, there is a finite amount of Steem. I don't think i need to tell you what happens when demand increases and supply decreases.
- The increasing use and solidification of the Steem Blockchain
What's good for the Steem Blockchain is good for Steem, and Steemit: As the number of applications and SMTs that appear on the Steem Blockchain, the more indispensable the Blockchain becomes.
It is for these reasons that I intend on holding onto my Steem Power and attempting to steadily increase it via blogging, and purchases.
There may come a time when blogging on the Steem Blockchain becomes unpopular, or it becomes a fruitless exercise for most to try and 'blog for Steem'.
Hopefully by then, the Steem Power holders wont need to.
We could be sitting in a hammock on a Fijian island, commenting on news of interest (at the websites of biggest online newspapers) and up-voting with our (then) huge Steem Power.
The following week, we can look forward to curation rewards to cover the coconut milkshake, and then some.
See you there!
Asher
If you are reading this blog and have 100,000+ Steem Power but do not care to curate, delegate it to me and I will send you 'your' weekly curation rewards having supported 100's of up and coming authors.
Projected rewards for 100,000 Steem Power 150/200 SBDs per week.
The author will receive comments on potential improvements to future blog, and a message relating to their supporter (you) if you wish.
Find me on steemit.chat or discord to discuss further.