HUNT ERC20 token transfer cost shows the need for zero cost SMT transfer.

Today I have transferred 20 HUNT tokens to my ethereum wallet (MetaMask) experimentally, it costed me 10 HUNTs. Basically, 10 HUNT is taken as gas-price (i,e, transaction cost on ETH network) for a ERC20 token (HUNT) transfer. Proactive HUNT devs have launched ERC20 due to delay in SMT release. Moreover, ERC20 token has infrastructure in most of the exchanges, therefore, they want HUNT to be listed as many as exchange possible. HUNT will begin trading soon at @daybit exchange.

Imagine, SMTs are the competitor for ERC20 tokens, how transaction numbers for Steem chain could increase. Moreover, SMT transfers will be free similar to Steem or SBD. Transactions will only require Resource Credit (RC). RC can be acquired by powering up the Steem.

Cost-wise, SMTs will be much more cheaper than ERC20 tokens. In that case, if HUNT was an SMT, then I would have received 20 HUNT instead of paying 10 HUNT as a transaction cost.

However, nothing comes as free. To maintain free cost of transactions for future SMTs, nodes by STINC or witnesses/DApp have to be run sustainably. It means that a Steemd node owner has to earn enough money from Steem chain or other sources (e.g. Ads on DApp or Witness reward) to maintain the free service of SMT transactions. It is where MIRA comes in. MIRA is supposed to drastically reduce the hosting cost by moving most data from RAM to Disk (e.g. SSDs). RAM is extremely costlier than Disks.

It is a wise decision by STINC to release MIRA before SMT. Since SMTs will be ERC20 competitors in steroid due to its free cost, it can also increase traffic in Steem chain. Transactions in Steem is currently using only 0.1% of the capacity. However, millions of transactions with SMTs, this scenario can change very quickly.

If you look into the following figure from HUNT's main ERC20 account, transactions are exponentially rising, so does cost paid by users. In case of SMT, there will be no cost but will require lots of RC or powered up Steem (SP). Therefore, big DApp owners or exchanges have to load lots of SP to support such transactions.

Overall, it also shows that demand for SMTs as a no-cost transaction token technology. It now seems wise that RC based transaction and MIRA are logical releases before SMTs. We all love to see SMT as soon as possible, but SMT would have been incomplete without RC-switch and MIRA.

If STINC can release full version of SMT this year and make proper marketing strategy to show goodies of SMT to the world, both Steem and SMTs will have really bright future.

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