I've been checking the tokens being created on Steem Engine almost every day. Truthfully, I'm super excited to see this development and I believe it's a sign of great things to come. I don't hold on to this idea, that it's robs SMTs with the opportunity to make a splash so to speak, but even if this was true, the best product should carry to torch anyways, and anyone who subscribe's to the idea of free markets should agree with that assertion.
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Simple is good
As of me writing out this post, it takes 100 STEEM to create your own coin. At these prices, 100 STEEM might not be much to some of our dolphins our whales, but of course that is likely to change depending on STEEM's valuation(I think so, at least).
The simplicity of the process is refreshing I have to say, it literally requires some clicks to create your own token, and without a doubt if we ever want this thing to explode, simplicity has to be part of the mix.
I'm sure that most have already checked out Steem Engine, but I would argue that regularly checking the tokens being created on there is probably a good idea, since doing so can give you insights into what's being worked on at the moment.
The missing fine print
One thing I wanted to say to any entrepreneur issuing a token and creating a serious project, is to not only think of the system of incentives, the gamification and what not, but also the possible legal challenges that could sprout. In other words, some tokens could be considered securities and this could spell disaster for any business built with them in mind.
To put it in plain English; if a token, whether an ENG token, and SMT, or any token for that matter, promised their holders profits, we would be watching a titanic on route towards a legal iceberg, and, just like the infamous ship, it would surely meet it's demise when it does. When this will happen? Nobody truly knows, but I suspect that legal clarity and enforcement is right around the corner, which means not taking this into account is clumsy to put it lightly.
Why X Token?
It's somewhat difficult, at least for me it is, to think of an effective way of creating a solid system of incentives, a reason for people to hold the token, and of course this is attached to the use-case but it's not necessarily the same.
In this aspect STEEM was designed ingeniously. You are compensated with influence on the platform for powering up, and rewarded with more tokens for doing so as well. The social webbing that influence casts is quite elaborate for a short description, but it's apparent to anyone who takes the time to observe. Not all profits are calculated in satoshis and positive impact on someone else surely plays a role as well.
The use-case is not easier either, and for the most part I speculate that most projects will piggy back on the incentives built on STEEM. Not that there is something wrong with this per say, but it's probably more important to know precisely what people want before writing one single line of code for any project. And, in the end Steemians want more STEEM, it's quite simple.
Dividends
I'm going to go on a limb, a solid one, but limb nonetheless, and say that most projects will be built around the idea of paying out dividends to those who hold the tokens. In theory this should work just fine, granted the business idea can generate enough revenue to justify someone holding or buying them even.
It's going to be very interesting to see the way tokens are going to impact the STEEM economy and I fully expect in the next few months to see even bidbots implement some of these ideas as well, since they already have models that work, like it or not, and a user base who would be more than happy to make more STEEM. If the new business models generate more revenue or not remains to be seen of course, but a glance at how @magicdice is running it's business can really give us a glimpse of a future that is not far at all.
Co-ownerships / DACs
I'm sure some communities are already having these discussions, and some I'm sure, have implemented this already. But it seems to me obvious that tokens could be used to democratize communities and their resources, so that all participants and incentivized to get involved, both politically and in the activities of the community.
There's been a couple of articles about DACs (decentralized communities). A must read in my opinion, for anyone who is thinking about implementing this was written by @lukestokes and it's literally proposes this very thing on STEEM but when it was written Steem Engine had not launched yet.
Fun times ahead
I almost can't wait to see what this blockchain is going to birth in the next few months. I mean, STEEM already is a place filled with ideas, dapps, initiatives, communities, you name it, and with this new tools the ceiling, so to speak, just got blown away.
This makes me look at today's prices like a ridiculous bargain, and in a way, as hard and difficult that it may be to keep the lights on with @helpie as witness, I'm somewhat grateful for the experience, and to be here now, when the peak of opportunity is easier to grab.
As I said, fun times ahead...
