How STEEM's price can rise in steep way: Reducing STEEM's inflation by launching Steemit SMT or growing STEEM users at exponential rate?

There is a recent talk that STINC can launch their own SMT and STEEM can be limited to inflation and compensation to witnesses.

Therefore, STEEM's supply will drastically reduce to 2% from current 8.7%.

Demand from STEEM will come from bandwidth purchases from the companies behind the SMTs.

In fact, EOS and ETH are based on this policy. However, EOS was a crowdsale through ICO and ETH is mineable through PoW miners. There is talk for ETH's future switch to PoS.

The advantage of SMTs will be that all the platforms can have their own policies on how reward pools for SMTs can be distributed among the contributors. The SMT distribution policies will go through trials and errors same as evolution.

Some SMTs will use the similar stake-weighted voting as it is used now in Steemit with STEEM. Some SMTs will use one account one vote (1A1V) policy to reward their contributors. Some SMTs may use linear curve for voting, others may use super-linear. It will be wild wild west but breeding ground for best adapting algorithm to reward the contributions.

There was a talk about in DApps, devs can still use STEEM as a reward along with SMT, in some cases, multiple SMTs.

However, in that case, to increase the price of STEEM, users should also be risen exponentially to consume new STEEMs through investing. There will be more STEEM produced in next 20 years than currently available. It is stark different than other top, popular currencies where most of the coins are mines or sold as a crowd-sale. For example, only 4 millions of BTCs are left to mine while 99% EOS are already sold as a crowdsale.

Therefore, STEEM blockchain needs high growth to sustain higher price. However, it is quite possible that some of the DApps with SMTs will see huge success (e.g. DTube can compete with Youtube), can bring in millions of new users. If big number of new users rush in through new SMTs, then STEEM's current inflation rate will not be a problem.

In that case, STEEM's demand will rise both from bandwidth purchase fom SMT launchers and new investors or content creators who want to earn STEEM through staking and blogging.

However, in that case, conversations will continue how the reward pool can be optimized to discover better contents and reduce abuses.

It is not clear which path STINC and community will take.

However, one thing is already achieved by the process of initial PoW mining of STEEM and blogging phase with Steemit and other apps, STEEM got distributed to millions of account.

STEEM will not struggle with future regulatory issues that EOS can. Due to ICO nature of EOS, it will fall under future stickier regulations. It is a hard decision to make: how to launch a cryptcurrency- PoW or PoS with initial crowdsale.

Even though any direction STEEM goes, it will be interesting time for STEEM blockchain. STEEM is already building future highways for the 1000s of DApps (i.e. cars) to ply through it.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@riseofth
Cryptominer since 2013, occasional trader and tech blogger