What's the benefit of minting new SP at the same time as dumping STEEM?
If I am not mistaken, the STINC faucet doesn’t mint new SP. It distributes SP they already own to new accounts. The purpose of distributing these to sockpuppets would be to obscure the fact that these sockpuppets are being employed to upvote their own content which pay rewards to the same entity. So in this way a large portion of the minted rewards end up in the pockets of this entity. This helps replenish STEEM that is being constantly dumped for BTC.
Regarding SMTs, the white paper is blatantly pointing out that one goal is to drive more demand for STEEM. And of course what is not spoken but is obvious to astute observers is that the issuers of an SMT can then duplicate this corruption that STINC is allegedly doing, siphoning off BTC continuously while surreptitiously capturing most of the rewards for themselves.
The fly in the ointment for these clever nincompoops, is that the entire rewards ruse is (as admitted in the Steem whitepaper) predicated on the psychology of fooling most participants into doing more effort than they’re equitably compensated for. Thus the success of SMTs is predicated on fooling the users and investors into believing this ruse. I doubt that non-crypto traditional social media sites can get the same enthusiasm from their users for this type of “proof-of-brain” rewards system as is the case for Steem. People come to Steem because they believe in the ruse. Thus I conclude that the SMTs will not be able to obtain sufficient interest except for new ICOs for new projects targeted to crypto audiences. Remember the early adopters of Steem were via word-of-mouth (bfs to their gfs) via those who (bfs) were already very enthusiastic and invested in crypto.
The whitepaper of Steem admits that the “proof-of-brain” reward system depends on being able fool most of the users into doing more effort than they will be equitably rewarded.
P.S. hope you caught up on your sleep. I’m experience that often also.
RE: 25 Reasons Steem Will Replace Bitcoin as #1 Cryptocurrency by 2021!