What has changed since the completion of the initial rewards pool distribution and the conversion of Scorum rewards over to Advertising revenue shares?

My version of a Scorum Coins Flow Chart Diagram

What follows is my own interpretation of our Current Scorum economy and has not been reviewed by or approved by any of the Scorum developers, anyone with better information is welcome to correct me in the comments section or write a blog with a better explanation of how things are currently operating here on Scorum.

  • I have confirmed that Advertising revenue alone is now supporting all of the rewards being paid out on Scorum for Delegate services and for member activities on the blogging platform. Most of this revenue is used to purchase SCR on the open market and a smaller portion comes through joint advertising agreements and OTC purchases.
  • Knowing this then we can assume that incoming SCR from the Exchange being purchased with Ad revenue moves through one of the Scorum Inc. wallet accounts and into the rewards pools, which I have combined in my diagram.
  • Rewards are then paid out to member's wallets from the rewards pool for the service that they provide and for their activities on the blogging platform. The rate of payout on the blogging platform initially was 0.0914 SCR per member per day, and until the White Paper has been updated and reposted we will also have to assume that this rate remains unchanged for now. But you should also understand that as membership numbers rise above 100K these payouts will be reduced even as the value of the payout is rising due to SCR becoming more scarce.
  • Once the payout is in a member's wallet one of four things happens 
  1. The coins remain in the wallet as liquid SCR The coins get converted to SP and are staked for12 months or more.
  2. The coins are transferred to another member's wallet.
  3. The coins are sent to the exchange and offered for sale

If you now look at the diagram above and trace the path of value through the system you see that it makes a loop from the Exchange through the Rewards Polls and member wallets and back to the Exchange.

So now when you think of the value of SCR you can see that it is mainly the members themselves that set it. If all of the coins bought on the exchange were from Ad revenue and if that revenue all made the loop and went back to the Exchange for sale, then the price of SCR would remain within a tight margin much as we have seen over the last few weeks.

But we all know that more SCR is being purchased by members and investors along with what is being purchased with Ad revenue. Also, it is apparent that members are selling coins that were purchased or earned before we went to an all Ad revenue supported system. Even so, the price has remained in a fairly narrow range.

Disregarding, for now, the fact that new members are joining Scorum and beginning to hold SCR in their wallet or to convert it over to SP for future earnings, let's just see what it would take to raise the price of SCR.

  1. More members could hold or convert the SCR that they earn thus more coins would be leaving the exchange from Ad purchases than is returning to be cashed out.
  2. Members could stop sending SCR that was earned over three months ago to the Exchange to be cashed out. (Before the Ad revenue took over)
  3. More members could start purchasing SCR from the Exchange or new investors could start buying and holding SCR on the Exchange waiting for the price to rise.

There are of course plenty of reasons to believe that any or all of these things could happen and that the price of SCR will begin a steady rise in value. But the fastest way to see some real value added to Scorum coins is for our memberships to grow and outpace all of these other metrics.

This is why I have been preaching for at least a year now that all Scorum needs to succeed is adoption. New members mean new wallets and new wallets tend to hold a certain amount of earned or purchased coins. If Scorum received 100,000 new members tomorrow then that would take hundreds of thousands of Scorum coins out of circulation, and the price would rise dramatically, even without more demand from members and investors. With added demand and an ever more scarce supply, the price soars!

Why Convert SCR to SP?

The more SP that a member has in their wallet the more SCR they can earn and the better they can reward their subscribers who read and comment on their blog. Scorum is designed to pay both authors and commenters well for carrying on debates and sports conversations. The more comments that you receive the more SCR you are going to earn, and the best way to get people to comment on your blog is to have the ability to reward all good comments. These payouts are scoffed at as if nothing right now, but what about when SCR is $1, $10, or even $100? By then it will be too late to cheaply build up your SP and you will be missing these potentially large rewards in the future.

It is also important to build up your SP for the future of Scorum governance. The more SP that you have the more say that you will have in the future of the Scorum blockchain. Members who hold SP vote on Delegates, and the more SP that you own the greater your voting power. Members with large amounts of SP will be courted by members with the desire to represent them for decisions on future development and direction of Scorum, and they also want to be the ones to earn the Delegate rewards.

These Delegates are the members who will be the ones to actually implement any changes to the Scorum blockchain, wouldn't you want to have some say in who your delegates are? Heck, you might even want to be a Delegate one day yourself, good luck with that if you are not holding a lot of SP. Certainly, you must show yourself to be committed to the future of Scorum first before others are going to vote for you.

Surely even now there are people lining up at the beginning of this bull market to start mass adoption and to board the Scorum Train. I know how fast it can happen because I watched Steem gain a million new members and they did not have as much going for them back then as Scorum has going for it right now, and we still have a lot of development ahead of us!

I hope this simple presentation helps someone understand the way our economy is functioning and to see how easily and quickly progress can be made.

Just remember that I'm not a professional economist nor am I qualified to give out financial advice. What I have written here is for your reference and entertainment. If you are thinking of opening an account on Scorum or investing in Scorum coins then please research it for yourself and find out if you believe, like I do, that Scorum is one of the best hidden gems with the highest potential for success in all of crypto land.