In this post, wanted to brainstorm the idea of simplifying Steem staking mechanism, if not Steem then could be adopted into some Smart Media Tokens or ESTM.
Right now, we have STEEM, SBD and STEEM POWER and with introduction of SMTs, there will be dozen more tokens, each might have their own multiple tokens (power token, liquid token and stable token).
More complexity for users... Of course, tokenizing web is unavoidable and many users already have many different tokens but what if we can simplify staking or core of Steem.
I was thinking of the idea of having one liquid token which can be used as an influence as well as stay liquid.
Many have argued in a past that we need stable tokens. Market have shown interest in this area as well, year 2019 with creation of many stable tokens. It helps to avoid fluctuations during bear/bull markets also gives user much more confidence holding stable token, stable utility/use. Most of them does stay stable compare to other forms token. In my opinion, when token mature enough, it won't need stable token. Liquid token will be much more stable and slower to move upward and downward when it reaches certain point.
When does token mature, where is that certain point?!
That is another question which I don't have answer for and from looks of it even BTC is not mature enough yet.
But until maturity is achieved user can always use other stable coins or hold plain old fiat/digital cash.
For almost a year, there wasn't any SBD printed and network still continue to function as normal and existing SBD didn't get any traction in terms of utility or use. So one can argue removing SBD will not be big issue and it will help simplifying system.
This is really controversial subject that has been discussed since the start of Steem by multiple respected community members. Pros and cons are weighted in different directions. We have even tried different lockup schedule, new proposal being discussed, which seem promising.
What best utility STEEM POWER gives?
Most agree that major utilities are: a) it gives extra security for user in case of hack, b) influence for allocation of reward pool.
BTC, ETH many tokens doesn't require to be locked in to be safe. Security is built-in in user's behavior, so user is careful to take care of their own tokens. Of course, people learn lessons hard way and same is happening with Steem users as well.
Influence on reward allocation, this can be improved and it is working quite good with recent EIP and doesn't require tokens to be locked, imho. So one can argue this complexity is also unnecessary.
How to improve influence on network without token lockup?
Influence on network can be achieved in many ways with only 1 token. And it is simpler to understand and explain, onboard users without complexity and it also increases liquidity on market for single token, it attracts more users because user can get in and out instantly.
Let's imagine scenario, where we have only one token STEEM. Numbers below are just examples...
User transfers in or earns 3000 STEEM
Liquid token matures daily upto 30 days or at once after 30 days.
- On Day 1, effective influence would be 100 STEEM increase/mature daily.
- On Day 30, effective influence would be 3000 STEEM.
- After 30 days token would reach maturity and influence would be 3000 STEEM right away. This has some complication for RC or user experience. Not sure would improve anything.
If user transfers out all or part of STEEM, it would still continue to calculate effective influence and eventually decay.
This would allow user to stay liquid but influence would still be core of the Steem that decay and mature depending on liquid token moving average balance.
Simplification would, not only improve user experience and understanding of economics in much simpler way, unified utility, etc. but also create demand for single token.
Technically, making this type of change on Steem probably will require quite a lot of refactoring.
So let's brainstorm this for now and see if it is any better or viable. Curious to know what you think, leave a comment...