RE: A Steemy Dream…SMT's for me the complete dummy!
Great analogy, Nigel. Very apt.
Anyone with an account will be able to start their own SMT under that account name, just by filling out a webform.
The more SP in that account, the more bandwidth/Resource credits it has.
An account with only 1000 SP might be able to support 2000 transactions a day, for example.
That would mean that account holder could comment on 10 posts, upvote 20 posts, write 2 posts himself, and holders of his SMT could send those tokens to each other 1968 times before they all started getting 'transaction error' messages. (this assumes all actions; voting, commenting, posting, sending the SMT, would each cost 1 resource credit).
A big use case for SMT's would be for somebody credible in a subculture to start their own currency without having to run their own blockchain.
Dr Dre fires up LAHipHop token and adds the appropriate widgets to his site, LAHiphop.com.
Performers will want to buy or earn these tokens, as they carry a lot of street cred (do the kids still say that?) and hodlers of LAHH get to decide what's hot and what's not in that scene/on that site.
Part of staying credible would mean he'd want to make sure transactions happen without issue, so he'd buy and hold 10,000 SP, to ensure LAHH can support 20,000 transactions a day.
A year down the track, his site is huge, and people love the tokens.
He's hitting 18,000 transactions a day and wants to buy 10K more STEEM to power up and support 40,000 transactions a day, but the price has increased to $50.
He doesn't have a spare $500,000.
He goes to the market and leases an additional 20,000 resource credits from you at 1% per month/$5000.
This is all gravy for you, since you keep all the voting power and only delegate out your spare resource credits/bandwidth.
Honestly Matt, what would this platform do without you?
P.S) I don't think the kids say 'street cred' anymore, they communicate solely through memes... if they were to use actual words I reckon it'd be 'ste credizzle'.
I lost my ste credizzle when I suggested he doesn't have a lazy half mill to spare.
Thanks Matt - seems like we are on the same page.
Wow! that would be super sweet and definitely my hopes are for this outcome for SMT's :)
Can't see why it won't work that way.
Imagine how many people want to get involved in blockchain tech, and have the ego to want to name a coin after themselves (or their brand) but lack the technical skill to build their own chain.
The smart ones will buy their SP.
A lot of others will wish they had, as the price of leasing Resource credits climbs.
If Dr Dre is a big hodler of LAHH tokens, he'll need to either find that half mill or keep paying you, otherwise his customers can't use his currency and it loses its value.
The feature of leasing the credits makes a heck of allot of sense and would drive the price of Steem.
I could see medium-large sized companies being attracted to the rental option, it makes good financial sense for them as they aren't increasing their assets (buying Steem at full price) and as you said don't need to invest in the technical for their own (doing it yourself generally means risk and sunk costs).
So they Just pay a fee once a month - you give them some excess bandwidth/credits and win/win! as long as the ability to lease again is a definite and access is definite, then its a great low cost/risk way to get yourself cryptofied. hehe is that a word?
Thanks for your comments Matt; bring on SMT!
Nice - bandwidth pools! (this is sweet) Certainly it hints at this...
The other thing we haven't looked at much with this post so far is the reward systems with SMT.
@ned's previous post tells of a new concept "oracles", which looks like a move to a single account vote reward system. If they do this they must do it in conjuction with bandwidth/Resource credit loaning or it would weaken the benefits of being a major shareholder.
It's implied that an oracle...which is a thing that determines if an account is an individual and are who they say they are also checks the attributes of the voter to ensure they are a good voter (not necessarily a rich voter, like currently).
Just from top of my head, I'm thinking if I created an IBT token, that I might be able to set some generic properties for the oracle to check?. For instance if I wanted to reward IBT players, then an enroled players, the oracle checks for this and they might have a stronger upvote (and get a large reward payout). I might also say, if you have a high Steemian reputation, then you have an even stronger vote OR it could be more binary.i.e. Your vote is paid back only when you meet all the criteria of the oracle and your pay back is stronger if you voted early.
To be honest the whole thing gets confusing when you try to think of how tokens might work with content on Steemit...chances are it wouldn't work at all and token will be exclusive off steemit platform, and application designers who use the tokens need to do API calls or something to an Oracle.
My understanding is that an Oracle is just a holder of a list.
I might advertise myself as a Never powered down Oracle and publish a list of those accounts.
You might decide IBToken should be issued to.
Committed, quality authors who've previously won the IBT.
When you launch the IBToken you choose that it'll go to posts by authors on these lists;
Unique individual.
Good actor.
Never powered down.
IBT winners.
Token holders will vote for an Oracle to be checked for each requirement. If I'm crap at updating my list, you and those who've previously earned or bought IBTokens will vote a competing NPD Oracle into the role and he'll earn payment in IBTokens instead of me.
Some oracles, like unique individual and good actor will be hotly contested and very lucrative, being paid by dozens or hundreds of SMTs.
Others, like previously won IBT will just be referenced by a single SMT.
Fantastic! cant wait to hear more about oracles, thanks Matt I certain have a better handle on it now. I hope others who were a bit lost also have a read of this post and its just as useful. Cheers