SmartCash#8 - Smartreward is good, but it can be great!

in #smartcash6 years ago

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Are there any ways to move out SMART without giving up the Smartrewards?

Smartreward is a cool way to award holder of Smartcash and it is one of the big reasons I took dive into running my Smartnode. It encourages investor to hold on SMART coin by awarding more coins if the address with at least 1000 SMART doesn't have any withdrawal record in last 30 days.

This can be a double sword in my opinion. Especially with the current the rewarding mechanism.

Smartreward can be more flexible

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Let say I'm running a Smartnode with 10k SMART in it. Over months I will have around 20k after adding in all the node reward and Smartreward. How can I move out the 10k for another new node without wiping the rewards from the remaining untouched 10k pool?

No way, as of now. It is either you keep the extra coins on the same address and wasting its potential earning power. Or you sacrifice one-month worth reward, withdraw the excess coin for better use.

It definitely spells as a big flaw to me, while I absolutely agree that removing coins from an address should void the reward to discourage devilish PnD activity, such mechanism can be further improved by either:

  1. Adding grace period for fund management
  2. Allowing redirection of incoming reward to a specific address
  3. Instead of taking a snapshot at a specific moment, maybe consider taking snapshot of the average balance of address for last 30 days cycle?
  4. Making 1000 SMART as a unit. If user moving in and out 500 SMART and the Smartreward for the first 1000 SMART will be voided, while the remaining coins on the same address remain safe.

Either one of above-mentioned suggestion could make our Smartcash smarter. There could be more ways of course and I believe there are more bright-minded in our community to make this mechanism better.

Liquidity is key for a cash

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With the downside of losing whole SmartReward, people will be reluctant to move out the 'extra SMART' which could be used in setting up a new node. So the network is at constant risk of losing potential new node which can further enhance our network security.

Furthermore, for someone who has a handsome amount of SMART which entitles for considerable reward especially Smartnode owners, we share all the same feeling that we make sure to think thrice before moving out and fund even for a dime.

This would eventually contribute to a culture that everyone would prefer to hold their Smartcash instead of utilizing it the way it was designed for, a smart currency.

Verdict

I had this discussion with one of the community members in Telegram and he made a good point saying that a lost reward shouldn't be taken as a penalty. Well, it is indeed a penalty when the system takes away more than what user deserve to claim. Moving out 50 coins would void my reward for the rest of my 9950 coins, while I'm adding more liquidity to make the whole ecosystem more healthy?

Sound like almost a bad joke to me.

What do you think about the current Smartreward system? Do you think there is a better way to implement it?


This series is to record my SmartNode journey. This is very much a high risk experimental act and I'm prepared to lose all the fund invested. Do your own research as this is not a financial advice.

Official site: https://smartcash.cc
Twitter: https://twitter.com/scashofficial
Discord: https://discordapp.com/invite/BDUh8jr
Steemit: https://steemit.com/@smartcash or @smartcash

Related post:

SmartCash#1 - My first crypto node setup for a passive income
SmartCash#2 - Acquiring 10,000 SMART
SmartCash#3 - Setting up a wallet
SmartCash#4 - VPS service that accepting STEEM
SmartCash#5 - Start the SmartNode
SmartCash#6 - Smartbot and the weekly prizes
SmartCash#7 - Received the node reward for the first time after 23 days!


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Think of if like a fixed deposit with your bank. You either qualify or you don't. It does not matter it you break your fix deposit to open a current account or another investment account with the same bank. Each product has it's own rules you either meet it or you don't . There is really no grey line here.
PS: I too have had to make this call for every node I have set up. In fact the last #smartreward I got no reward on the node I took out smarts from to set up the new one. Missing the #smartrewards was not too bad as the rules are very clear (no surprises there). It is the initial wait time and the random queue of the new node that was hard - not know how long the wait will be till first payment.

I understand your analogy and it does work like the fixed deposit. But it acts like one doesn't meant it should act like one. And comparing the digital, flexible and smart cryptocurrency to the traditional money system which we wish to beat? Not so appropriate.

What this post about is suggestions for improvement. I know the rule is clear and obvious. But does it has room for improvement? Undoubtedly.

SmartReward is an incentive to hold #smartcash, unless you want all your addresses labelled on the blockchain so movements between both would be disregarded (terrible idea) I can see many ways in which this would be abused. Claiming we should not compare:

And comparing the digital, flexible and smart cryptocurrency to the traditional money system which we wish to beat? Not so appropriate.

I would disagree progress even in technology always starts from the known (old) and it's extended. Your using #Steemit for blogging is a known platform (old) extended to the blockchain.

The fact is nothing is new under the sun.

Yeah, anyway I still think there is a better way to improve Smartreward. And I enjoyed this discussion 😊

Sometimes it is choice between bad and... worse so we need no to wait for changing "rules of the game". Crypto world could be sometimes annoying and can test your patience but all in all it is opportunity to make money :) Very interesting article. Upvote for you!

Yep, users always have a choice.

i think you might be missing the reason SmartRewards exist, for overall stability, not as a means to reward smartnode holders, it is an additional benefit on top of the incentive that is SmartNode payments, they are separate features with separate goals. if you look back to the charts between july and october 2017 you can see that significant dumps were happening due to their being a grace period between payout and snapshot, this lessened alot once the grace period was removed, essentially smartrewards are a loyalty based reward, not a dividend and should not be though of like they should pay like one either. if your loyal to the SmartRewards then you get them.

Well, I get every point you said and you made good points. I would say we have a different perspective. A solid project must be able to survive even with huge PnD activity and relying on a reward mechanism to prevent that is not a long-term solution. But it of course will helps.
And I know exactly what Smartreward is for, what I'm suggesting is the ways to improve it, unless you say it is perfect the way it is now.

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