SmartCash#8 - Smartreward is good, but it can be great!

Are there any ways to move out SMART without giving up the Smartrewards?

Smartreward is a cool way to award holder of Smartcash and it is one of the big reasons I took dive into running my Smartnode. It encourages investor to hold on SMART coin by awarding more coins if the address with at least 1000 SMART doesn’t have any withdrawal record in last 30 days.

This can be a double sword in my opinion. Especially with the current the rewarding mechanism.

Smartreward can be more flexible

Let say I’m running a Smartnode with 10k SMART in it. Over months I will have around 20k after adding in all the node reward and Smartreward. How can I move out the 10k for another new node without wiping the rewards from the remaining untouched 10k pool?

No way, as of now. It is either you keep the extra coins on the same address and wasting its potential earning power. Or you sacrifice one-month worth reward, withdraw the excess coin for better use.

It definitely spells as a big flaw to me, while I absolutely agree that removing coins from an address should void the reward to discourage devilish PnD activity, such mechanism can be further improved by either:

1) Adding grace period for fund management
2) Allowing redirection of incoming reward to a specific address
3) Instead of taking a snapshot at a specific moment, maybe consider taking snapshot of the average balance of address for last 30 days cycle?
4) Making 1000 SMART as a unit. If user moving in and out 500 SMART and the Smartreward for the first 1000 SMART will be voided, while the remaining coins on the same address remain safe.

Either one of above-mentioned suggestion could make our Smartcash smarter. There could be more ways of course and I believe there are more bright-minded in our community to make this mechanism better.

Liquidity is key for a cash

With the downside of losing whole SmartReward, people will be reluctant to move out the ‘extra SMART’ which could be used in setting up a new node. So the network is at constant risk of losing potential new node which can further enhance our network security.

Furthermore, for someone who has a handsome amount of SMART which entitles for considerable reward especially Smartnode owners, we share all the same feeling that we make sure to think thrice before moving out and fund even for a dime.

This would eventually contribute to a culture that everyone would prefer to hold their Smartcash instead of utilizing it the way it was designed for, a smart currency.

Verdict

I had this discussion with one of the community members in Telegram and he made a good point saying that a lost reward shouldn’t be taken as a penalty. Well, it is indeed a penalty when the system takes away more than what user deserve to claim. Moving out 50 coins would void my reward for the rest of my 9950 coins, while I’m adding more liquidity to make the whole ecosystem more healthy?

Sound like almost a bad joke to me.

What do you think about the current Smartreward system? Do you think there is a better way to implement it?

This series is to record my SmartNode journey. This is very much a high risk experimental act and I’m prepared to lose all the fund invested. Do your own research as this is not a financial advice.

_{Official site: https://smartcash.cc}
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SmartCash#1 - My first crypto node setup for a passive income
SmartCash#2 - Acquiring 10,000 SMART
SmartCash#3 - Setting up a wallet
SmartCash#4 - VPS service that accepting STEEM
SmartCash#5 - Start the SmartNode
SmartCash#6 - Smartbot and the weekly prizes
SmartCash#7 - Received the node reward for the first time after 23 days!