How important is a stable coin in tokenized social media?
1 Discussion

Very very important in reality. Stable coin is key to the success of a tokenized social media. Keeping that in mind steemit invented SBD concept to pay its authors and content creators with a stable coin. Unfortunately the underlying algorithm failed to keep SBD as a stable coin. That is also one set back. But if you read the whitepaper of steemit and try to understand the whole concept behind steem and steemit, then you can realize that the concept, the framework has taken every thing what requires for a sustainable social media platform. Primarily steem is market driven and the market will decide what the price of steem will be. That is fine. SBD is ideally a USD pegged currency as per the white paper, but unable to remain in that peg in last one year and before 1 year it was doing its role of a stable coin and hence the ecosystem was quite stable regardless of what the value of steem was.

There are many professional bloggers, who always want their money in stable coin, as that is their profession and they want their money for managing their live. So whether you pay it fiat or crypto they eventually sell it and pay for their bills, rent, food and many other thing which a person require in life. With that being said, a social media actually require stable coin, either you keep it in USD or TUSD or USDT or SBD or anything, but make sure that it is a stable one and not volatile.

SBD pushed up to as high as 18 usd last year, every one made some money, but did the platform as a whole retain those active authors, cerainly not. The moment the price reduced to 0.6 usd, the authors switch to other source or other paid social media platform. That is due to the fact that it was not sustainable for those who solely rely on their professional blogging for monthly earning. SBD may rise tomorrow above 1 usd or may be 2 or 3 usd. That is not a matter of discussion. But you can not keep the volatile behaviors in sync with the platform activity. The platform has to have the regular and active people every day regardless of what price the underlying currency of the ecosystem is. That is why a stable coin is an ideal solution for a sustainable social media platform.