There is going to be a survival of the fittest Dapps on the Steem blockchain soon.
One of the biggest topics of this Steemfest is sustainable business models for Dapps.
The Dapps that solve this the first will benefit the most.
What has become clear is that relying on a delegation from Steem inc or big stake holders is not the way to grow a long term business.
The moment this delegation is taken away the business will end when the earned funds (self votes or beneficiary rewards) run out.
As backup for this 'problem' another revenue stream needs to be found for all Dapps that rely on delegation.
That's why I am so impressed with Steem Monsters because they are showing a way to generate revenue on the blockchain without delegation by selling cards and taking a small cut from the market place.
But there is more. They can now use the earned Steem(power) to reward their users and incentives them to create content about Steem Monsters for upvotes.
They are growing a community from scratch. It's very impressive. Even if you don't like the game this should impress anyone. (I am not counting a Steem Monsters fest out in the future).
But this night in the Uber on the way home I got a cool thought. It's very simple.
Even though Steempower delegation is not the way for a long term business model it is the perfect way to incubate projects without risk. (you can always take it back).
A delegation for let's say a year can go a long way to get the project started and functioning.
To receive this delegation a project can produce a business plan with a revenue model and present it to investors (SP holders).
Now, when these projects are up and running after a year 2 things can happen.
- They have found a second revenue stream and can stand on their own feet. (awesome!)
- They have a working project with future potential/business plan but need more funding and they can launch a SMT ICO to attract more investors. (We have a lot of these projects already right now!)
And if not successful after a year the delegation can be pulled and the project will most likely fail.
I think there is going to be a survival of the fittest dapps on the blockchain soon.
The ones that can grow a community and find a successful revenue model will succeed.
It's very exciting and interesting and I can't wait what the future has in store.
I want to talk about it more in a vlog tomorrow if I can finally find some time.
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Good stuff, Mark. I have yet to commit to learning about Steem Monsters but maybe I should do so now. At least familairize myself a little bit with the game as it will be adopted by new users who come aboard down the road.
So it would only benefit me to know something about it
i absolutely, totally agree with you. i think steemhunt getting listed on an exchange in early 2019 is gonna be huge.
I'm speaking with a lot of people, almost everyone agrees that Steem is a great tool but majority thinks it cannot compete favourably with other coins especially in terms of value.
What's your thought?
Can you explain further? Why couldn't they compete? They have the fastest chain right? Look how eth went with that bird exchange game. Steem blockchain holds good with steemmonsters right? So why couldn't they compete. What is the downside on steem.
I think this should bring up the importance of something that many have notnpaid attention to in that investors are also needed here. Many investors that were attracted here have been attacked in the past given that they trended towards vote selling and bots for passive income. This could help and fill in the gap as SMT come closer. However, we need to make sure that they have a place within the community as well.
It's great that more and more people are starting to think about sustainable business models. The SP delegation thing is actually kinda similar to ICOs (just smaller in size and impact):
You get initial funding but have to find a way to sustainably run the project in the long run. Hardly anybody in the entire blockchain space has solved this, yet.
I would very much welcome such a contest. You could even enhance it by paying back a little bit once the project got profitable by delegating back, to another startup project or by setting beneficiaries.
Thanks for bringing this up, enjoy the rest of Steemfest!
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Crypto is survival of the fittest!
All this sounds very promissing. Although the surviving of the fittest conceptmay be discouraging for most minnows
Steempower delegation "is the perfect way to incubate projects without risk. (you can always take it back)."
I think this is the main advantage of those projects being developed on the STEEM blockchain, because not everybody feels comfortable to invest their money in projects that don´t have any credentials and/or experience. (let's be honest, although we have some interesting ideas, we don´t have all stars teams creating projects here)
By delegating SP, everybody can invest safely and based on the amount of research you put into that project you will find out what´s the best amount to delegate and make you so profit on the long run.
@exyle, Sounding really Productive and beneficial too. And in my opinion every project will not going to make it but for sure in this Economy they have an chance to survive in this Economy through Delegations if they have an promising road map and overall implementation plan. I am really excited to see how everything will going to open up in the future.
Wishing you an great day and stay blessed. 🙂
Great article @exyle. Lots of info and gives some ideas to mull over. I for one love Steem Monsters and been having a good time with it so far. Different and more Dapps will be a good idea and introducing ways of incorporating steem into them can only benefit the platform and blockchain. In my opinion anyways.