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Discounts are good, but I don't think you should give it away on Smashwords for one simple reason -- once you have bought something, even if you bought it for $0, it won't let you buy it again. So you have the same problem as people with "set your own price" books -- people won't really know how much it is worth to them until they have read it, at which point it would be too late to revise how much they paid.
Whereas if you put it somewhere else for free (eg on your own website?) you could put something at the end saying they could go and buy a copy if they enjoyed it enough to want to do so.
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