To understand the fundamental concept of a steemit economy, we must understand the functions of these three unit values in the Steemit. first (1) Steem is the value of a unit we can buy directly on the Bittrex platform exchanger, and note that it does not work like a BitCoin where it is stored as a value asset because every year Steem's total supply increases 2x.
How is Suppy Steem created? the answer is from Proof of Work when solving a block. Steem can be mined through Windows and mining power is determined based on your Processor, not GPU like Ethereum.
So ...Network steemit starts from 0 supply and based on what is written on its whitepaper: there are approximately 800 new steems created every minute.
Second (2) Steem Power is the value of a unit that can be converted from Steem. for you to re-convert from Steem Power to Steem takes 2 years, gradually as much as 104 times payment. Why 104 times the payment because the steem power that you convert to steem will be paid every week ..because 1 year there is 52 weeks then 2 year equals 104 weeks. This process is called "Power Down".
The advantage of having Steem Power is that we get Steem every time New Steem is created (still remember the above points mention that steam supply will continue to increase every minute?)in the other word, by converting Steem to Steem Power ,,, we are guaranteed to get more steem quantity (in Steem Power form) as time goes on rather than storing Steem.
Each new Steem creation: 90% of the steam will be distributed to the Steem power holder in the Power Steem unit. While the remaining 10% will be distributed to those who contributed in posting articles / upvote and comment. Additionally, when we are voting on a post, the larger the Power steam we hold, the greater the rewards that will be generated during the creation of the steam.
Third (3) is Steem Dollars. Stability is very important in any company's economic success. for that, Steemit has the value of the unit we call the Steem Dollars, which has a fix value (equivalent) with 1 US Dollar.
For that ,,, indirectly, every Steemit user will ensure that the Steemit site is always crowded and lively, making it a great success including introducing to people about Steemit and encouraging them to participate.
If we spend time on the forum Reddit / Kaskus or other social media, not necessarily everyone can enjoy the benefits. But unlike users who spend time in Steem, they they will get rewards only because they actively contribute in social media. one interesting thing before I end this article is, to start in Steemit, should not be required capital to buy Steem. You can start for free, just by signing up, we've been given free Steem Power that is worth $ 3- $ 10.
So much that I can describe may be useful for us all, thank you.
This is an EXCELLENT tutorial! Man, I wish this would have been available for me when I first started STEEMIT. I am going to RESTEEM just to make sure the people connected to me see this and hopefully benefit from it.