The SMT's WILL be built on the Steem blockchain, but will allow people to create their own tokens, that can grow diverse and focused communities. The benefit for Steem holders will be that all these people will have to go through the Steem blockchain to do it, as well as use Steem to trade in these newly-created tokens.

I suggest that you read the SMT Whitepaper - it's 60 pages and it blew my mind with all the possibilities it presents for Steem.

I think it has the potential to make Steem the number one blockchain in the world, and I do not say that lightly!