My Great Big SMT idea - call for input, advice, criticism, knowledge.

jk6276 (66) in smt • 6 years ago (edited)

View this post on Hive: My Great Big SMT idea - call for input, advice, criticism, knowledge.

6 years ago by jk6276 (66)

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cryptonik (55) · 6 years ago

Interesting idea but not quite clear to me. Is the only purpose of the ASB to purchase a Steem account? And what about existing Steem users. Do you rather propose an online shop where you can use ASB that also gives you a STEEM bonus?

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2 votes

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jk6276 (66) · 6 years ago (edited)

My proposal is that retailers integrate it as a payment option for consumers. The steem account would be created for a new user using the new RC account creation system from the Hard Fork.

So a retailers website would have a "checkout using ASB link", same as other existing payment options. Existing Steemians would be welcome to buy in (perhaps even with a discount).

The point of it is to offer rewards to both retailers and consumers for using ASB (and by default STEEM) as a payment system.

It's just a thinking out loud idea at the moment.

Thanks for taking an interest @cryptonik

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satorid (67) · 6 years ago

good Idea, I like it being tether AUD, I think it's important to have the value stable for reliable retail transaction.

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1 vote

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jk6276 (66) · 6 years ago

Yup, that is my thinking. I have no idea if any of this is technically feasible, just floating an idea for discussion. A Tether makes sense to me to allow for mainstream acceptance.

Thanks for your input @satorid.

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bengy (73) · 6 years ago

It is a great idea, but I wonder, isn't this the purpose of SBD? To be a pseudo stable coin set to peg to the usd?

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jk6276 (66) · 6 years ago

Yup, but I am thinking of a coin with a rock solid peg to any fiat (my idea is AUD to begin with - could be othr SMT's set up for other fiat currencies)

Quote from the SMT white paper:

5 - Arbitrary Assets - Tokens Representing Real World Assets
Let’s examine an instance in which an entrepreneur is looking to provide liquidity in the
Steem ecosystem. The entrepreneur can issue an SMT without inflation properties, and
imply that they will provide structure to peg it to USD (or any other debt, contract, or
asset), making it like an IOU or basic derivative. The structure they provide to the asset
includes buying and selling it near $1, similar to Tether. The entrepreneur sets up bank
wire capabilities for buying and selling, and takes a small % on each transaction. The
derivative trades against STEEM, and also brings capital into the ecosystem to be used
across all tokens.

I propose AUD as the "test case". The purpose is a crypto that is stable, acceptable to consumers and online retailers, with both participants rewarded for using it with STEEM/SBD/SP and onboarded to the eco-system.

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bengy (73) · 6 years ago

For it to be tethered (properly), it would need a 1:1 asset backing? That could be the tricky part!

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jk6276 (66) · 6 years ago (edited)

I think it would not need as much as you might imagine. Most of the tokens would be issued in return for AUD. This is held by the SMT issuer. Customer then purchases from retailer. Retailer converts the SMT back to AUD (could happen automaticly) Both customer and retailer are both rewarded with STEEM.

Some funds would be needed to cover purchases of the SMT made with STEEM or other crypto's. Until all transfers/exchanges happen.

Of course I could have this completely wrong in my head...

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bengy (73) · 6 years ago

Sounds simple enough, but there is the problem of trust and submitting to audits and other overheads like that. Don't get me wrong, the idea is intriguing, but why would the retailer or customer prefer this SMT over fiat (Australian banks work well enough!) or other crypto with a heavier adoption/security or just flat out straight to a dedicated stable coin? The amount of reward in Steem is pretty small and a bit worthless to anyone that isn't already in the Steem economy.

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1 vote

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jk6276 (66) · 6 years ago

Thanks heaps for your input. I have these big crazy ideas quite often. I have decided to put my thoughts out there and see what people think. On this, you are probably right, would the regulation and compliance be worth the risk? Would anyone not already in steem want to be for this. It's a complicated idea with lots of pitfalls.

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2 votes

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jackmiller (66) · 6 years ago

You would probably need to have set up a means to convert other crypto into AUD which would have to be held in an account at a bank that doesn't hate crypto (note, idk if such fiat based banks exist) so that you can issue the SMT ona debit card for them use.

Again, the agent for the debit card is something that you would need set up aswell.

So yeah, your idea is possible and I believe that it could work for Australia, as a perfect example.

With a lot more homework prior to moving forwards.

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jk6276 (66) · 6 years ago

Ah yes, the banks. That's the hard part. This idea would have to fit in with the existing system of regulations and any approved fiat to crypto start point is a massive undertaking. With Aussie banks very anti crypto, hard to do. Getting one of the existing players (eg coinjar) to enable Steem would help.

I guess that there isn't enough scale with the existing steemian base to start this. I'll keep keep thinking and spittball any other crazy ideas I have to see if they stick.

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1 vote

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glastar (71) · 6 years ago

Interesting post and I have to learn about SMTs

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jk6276 (66) · 6 years ago

Hey @glastar, thanks for reading it. There is much to learn but I think SMTs will be a game changer.

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