Steemit is a social networking website, a blogging and social news community based on blockchain that was developed to both take the outlook and seemingly, functioning of Reddit. Although some other differences may be noticeable, there is one particular difference that characterizes steemit as unique: On Steemit, the situation is win-win. There is monetary reward that can come in three ways when your works (posts and comments) are upvoted. Also, those who have taken their time to upvote your comments and posts are not left behind in the reward time. Then, users also are greatly rewarded for discovering what seems to be the best and popular contents on the site. It is called curating. It takes voting for the popular votes and submissions and then the reward for this is influenced by the amount of Steem Power that the voter has.
Rewards in the Steemit social news community has been developed to be run around a new type of digital currency just like the popular Bitcoin. Steemit uses a digital currency based on the Smart Media Tokens (SMT) protocol called Steem, also, there is the Steem Dollars, and then, there is the Steem Power. Like the name comes across. The Steem power seems to give the user more strength on Steemit, it is used exclusively only on Steemit, but the other two can be used to store value and also for trading purposes.
Apart from the fact that every participant is rewarded, another great piece of intriguing and catchy information is that it is absolutely free to get started on Steemit. There is no charge whatsoever. With the rising of each day, new units of currencies are generated and created as scheduled by the network. The users can then make moves to convert these digital currencies into real money which they can handle on the open market.
The above is just a general introduction into the world of steemit, however, it is now necessary to help you understand the totality of how Steemit works. How does Steemit work?
Steemit has some of the similitude that is expected to characterize every digital currency. For example, all digital currencies can be traded. They can be purchased and sold even on a open market and it is exactly the same here with Steemit.
Although this doesn’t come across as the major way of making money on Steemit, just like with other digital currencies, currency mining is also allowed here on Steemit. With the coming of each new day, new currency units are generated and distributed across to all the users on this website. It is simple, the proportion of the distribution follows the pattern of your participation. You earn the more only when you engage the more.
Everyone is allowed to have a share. Users who create contents have their share, those who upvote these created contents are allowed to have their share too, so also are those who curate the best contents, posts and discussions on the page, also, those who take their time to react to contents by commenting and engaging in discussions are all rewarded as well.
Now that you are now enlightened about how steemit functions, it is the right time for you to learn more about the three Steemit currency units that are in use.
Again, you are getting to know another difference about Steemit. Although it is just one social community, three different currency units co-exist there at the same time with each having its different uses. These three currency units are Steem , Steem Dollars, and Steem Power.
What is Steem?
Steem is developed by Steemit. It is based on the Smart Media Tokens (SMT) protocol. It is the cryptocurrency that is used to power Steemit. It is the basic unit on this blockchain. They are units that can be traded. They can be exchanged for actual money on the open market. They can be sold as well as purchased.
One thing that you must note at this time is that you should try as much as possible to not hold steem in its raw form for so long. There is no other reason for this than because new Steem units are generated each day and should you hold too long to it, it will lose value and get diluted.
What then is Steem Power?
The Steem power is the token that indicates how much strength you have in this social community. You are not allowed to vote when you don’t have Steem Power and your vote counts more when you have more Steem Power.
What is different about this particular Steemit token is that for two great years, you can’t sell Steem power units. This simply means that accumulating it is having a long term investment in the currency.
With time, you will eventually be able to make great money along the long run by keeping your money in this form because it simply means you have ownership in the network. As the network grows, your imminent reward grows as well. With the way things are run now, of all the generated currency units each day, 90% are shared to those who have Steem power, and that is in the form of Steem power as well. Only 10% are made available to content creators and curators. Out of the pay you get for your content, 50% will be in the form of Steem power units, and then, your curation votes count the more with the number of steem power units you have. All your participation on the website will have more value if you have more Steem Power units. Reward for your vote will increase, the works you upvote also will have more reward.
What is Steem Dollars?
This was simply created so that users will not be affected by the fluctuating exchange rate of Steem. They are never diluted, neither do they lose value. When users post and curate contents, they are rewarded with Steem Dollars. Upon creating any popular content, half of your reward will come in the form of Steem Dollars. Rewards also are put in place for holding on to Steem Dollars, although, this can never be compared with that of holding on to Steem Power. Holding on to Steem Dollars attract 10% interest.
Handling Steem Dollars depend on the user. You may decide to convert it to Steem and sell it for actual money, you may decide to withhold it as Steem Dollars till you are ready to use it, and you may decide to convert it into Steem Power to have more gains.
Having understood what Steemit is and how it works, if you want to get started, visit Steemit.com
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