Yesterday, I wrote an article on Bitquence's rewarding system, focusing on the issue on how these reward systems can bring healthy values.
I got a lot of feedback on this topic, especially people who want to invest in coins for the long term agree with the idea that, reward systems are great in terms of being beneficial to all parties involved in a coin.
Here is my article on Bitquence, if you haven't read it it would be more beneficial if you check out that article, before you continue on your reading:
https://steemit.com/cyrptocurrency/@arcturian/bitquence-owners-will-get-rewarded-in-bitquence-platform-may-be-better-than-masternodes
The rewarding system Bitquence provides will most likely be more beneficial than Masternodes.
However, not all rewarding systems can bring better value than Masternodes. Therefore, I want to explain the values Masternodes, and Reward Systems bring, and then explain how to assess the difference in terms of value.
Value is always the key element we must focus on when we do our assessments as investors.
Let's take a look at the values Masternodes provide
- Dividends for investors
- Incentive for investors to hold on to the coin for the long term (if coin doesn't crash, because if it does those incentives will be much lesser.)
- The inftrastructure for the transactions becoming stronger
Let's take a look at the values Reward Systems provide
- Boosting the value of the platform and the coin, since rewards are given when inherent value is added. ( In Bitquence, they need great reviews on cryptocurrencies from experts, and they reward coin holders who make accurate assessments. In Steemit, they need great content, people who can add new users to Steemit and an active community of course, and all these gets supported by the reward system. )
- The inherent values reward system brings have a positive effect on everyone: investors, users, platform, coin, etc.
- Incentivizing action from investors, thus bringing greater value for all the other parts of a healthy mechanism.
- Rewarding people who does more to increase the value even more, thus creating bigger volumes of value-providing support.
- Providing solution to a specific problem the platform needs to solve to become successful.
Thinking In Terms Of Value
In Silicon Valley, and global tech ecosystem, best investors are those who are providing more value than just putting money into an investment. You can find hundreds of articles on this topic if you search for "what to look for in an investor, when you are looking for fundraising".
They all stress the fact that, investors should bring more value to a startup than just providing finance. It's pretty common sense.
Because investors who can put more value than just money, will increase the growth and value of a startup in short term, and long term.
If you would have a startup, would you look for investors who are in it just for the money, or who are in it for supporting all the aspects of your growth. Wise investors tend to invest in a startup with everything they can, because that way they can help the startup gain more traction, and multiply their profits.
In terms of Silicon Valley investment structure, and in terms of added value: reward systems can definitely be more valuable if organized and executed correctly.
I wouldn't want to say that all reward system will be greater than Masternodes. However, reward systems that support the platform very well, will indeed bring better benefits for all the parties involved.
So, when you look at a Cryptocurrency Reward System, you should still do your own assessment and see if the reward mechanism brings great value or not. If it does, that's amazing. And definitely more worthwhile than Masternodes.
Although again, I want to stress this note: if the rewarding system sucks, and doesn't bring any value to the platform, but just to coin holders: that might not be a good bet. Because if all parties involved get better benefits, the blockchain technology and the value of its' coin will grow at a much faster and healthier pace.
Sincerely,
Arcturian
I write on cryptocurrencies daily. If you'd like to read my articles, and follow the content I curate on crypto, you can follow me.
P.S. Never invest more than you can afford to lose.