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RE: What is Bitcoin? - "A Simple Guide for Non-Technical People."

in #bitcoin7 years ago

It's not silly. It is generated in a similar way to how bitcoins are generated using something called delegated proof of stake.

Regular proof of stake generates new coins or tokens according to how much each account holds, DPOS is similar but uses a combination of elected "witnesses" who run the network (like nodes) and in the case of Steem, voting to allocate the rewards.

So to put it simply a certain amount is produced every day and the majority of it is allocated using votes (depending on how much Steem Power the voter has, more SP = more money).

A small amount also goes to witnesses for running the network.

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Very helpful ! Thank you! :)

You're welcome!