Yesterday I posted an article detailing how STEEM is the ultimate compounding machine. Everything we do on here builds upon what we did before. By the same token, the activities we are taking today will net us results tomorrow. As SP goes into our accounts, we realize an increase in VP which helps to further increase the SP we receive.
For those who missed that article, here it is:
The amazing aspect of STEEM is you can get paid in many different ways. Just focusing upon the system itself, we know that the secret is to post, comment, and upvote. This allows us to get curation rewards for our upvotes, compensation for the articles we post, and payment for the comments we make to others. For those inclined, there is also the possibility of becoming a witness or a developer which also has additional payouts.
But wait there is more.
On Steemit, along with some of the other apps, you will find things such as contests which enable one to "win" or earn more SP. These are often given by different groupings in an effort to promote these sites (while having some fun). At the same time, individuals also will host a contest with a few SBD as the prize. From what I understand, some of these contests can have some pretty healthy payouts.
Before going any further, let me ask you a question:
Have you ever had your bank come to you and say, for having your dollars in our bank, we are going to shower you with different currency as a way to say "thank you"? I know I have not.
Does this really happen?
The closest I can think of is when an investment bank puts together an IPO. At that time, it will go to those companies that do a lot of trading with the bank (ie pay it a lot of commissions) and give them a piece of the action. With the prices these entities are getting in at, it is free money. They get to buy in at a below market price and sell it as soon as the bell opens at a much higher price. It is a nice thank you.
Did you realize the same thing exists on STEEM? There are two instances which have stated this is going to happen and I surmise many more down the road.
Under this scenario, Steemians are literally going to see tokens multiply before their eyes. I have stated the Internet is a giant copying machine and now it has come to the world of money. What do you think is going to happen? Money gets copied.
The Smart Media Token protocol could generate a great deal of abundance for the holders of SP. So far, both Vice and Appics announced they are setting aside tokens for Steemians.
Vice is, I believe, forking the blockchain. In doing so, they are taking what is presently available on here and doing it themselves. This is akin to Bitcoin being forked resulting in Bitcoin Cash. Like the holders of Bitcoin, holders of STEEM will be compensated. According to their white paper, they are setting aside 400M tokens for STEEM holders. If this applies to all STEEM, that equates to about 1.5 Vice tokens for each STEEM token one is holding. However, this amount could be greater if they are only offering it to holders of SP.
Either way, that is what I call multiplication.
It is also called free money.
Another project is called Appics. This is one that was going to be designed using the SMT protocol but, since it was delayed, they are doing their ICO on Ethereum and them moving to the steem blockchain. Again, like Vice, they have a portion of their total distribution allocated to Steemit. According to their information, 5% of the total 240M will be given to Steemit. This equates to 12M.
While a much smaller amount than Vice, it is still free tokens. According to my math, each STEEM equates to about .04 XAP. While this does not add up to much when you take the $.15 ICO price, there is the possibility that this token heads much higher. It is an app that is going directly on this blockchain and is designed to take on Instagram. With such a small total distribution, 240M, if this gets any type of activity on it, we will see the price move into dollars.
My point here is not to forecast the price of these tokens. I just wanted to illustrate how holding STEEM will actually multiply the number of coins you have. As I stated earlier, I expect this to continue when there are more tokens made via the SMT protocol. It would only make sense to give those who are already using the system tokens to interact with those sites that are just adopting it.
These "airdrops" are literally free money and show how STEEM really compounds your earnings. Just holding what is given to you carries a good possibility of creating wealth for yourself. It only takes one or two tokens becoming popular for it to really increase one's wealth.
What better compounding mechanism is there than being handed free money?
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