Hello Steemians! Like so many new members of the community I have spent the past week diving headfirst into Steemit and discovering how incredible the platform is. Steemit is an unprecedented technological advancement that will have massive implications in media, advertising and personal finance on a global scale. This is my first Steemit post I would like to take the opportunity to share what I have learned about Steemit and the fundamental components that make it such revolutionary social experience.
A Community
Steemit is a community that rewards contribution with economic incentives. It is the first decentralized, peer-to-peer social media economy where members receive merit-based financial rewards for creating content and voting on content created by others (curating). Members get paid to post and vote; contributions are recognized in proportion to the value they add to the Steemit economy. The more value a community member creates, the more they are paid. Steemit utilizes state-of-the art blockchain technology to distribute and secure rewards without the complexity typically associated with holding and transacting in crypto-currencies. Steemit is the first functional crypto-economy accessible to the mainstream internet user regardless of age or ability and more importantly, makes earning and using cryptocurrency friendly, easy and fun.
With Smart Rewards
Contributions are valued by voting; more votes equates to higher value. Members that create higher value content are allocated proportionally greater rewards. Rewards are denominated in units of Steemit’s native crypto-tokens: Steem, Steem Power and Steem Dollars. Each token has very different properties and together they form a powerful set of tools with which to create meaningful wealth.
All Steemit tokens are secure blockchian-based crypto-tokens similar to Bitcoin, Ether, Bitshares etc. and ownership of the tokens is stored on a public ledger. Steemit tokens are used to determine the voting ‘power’ of community members. One token enables one vote; the more tokens controlled/held by a community member the greater the voting power they possess. Consequently, community members contributing greater value to the Steemit economy earn proportionally greater voting power.
And Smart Finances
The most revolutionary feature of the Steemit platform is the use of blockchain technology to distribute rewards and secure the wealth of the community. The Steemit blockchain is used to create, transfer and track ownership of reward tokens and does so with stunning speed and efficiency. There are three different types of Steemit reward tokens: Steem, Steem Power and Steem Dollars. Together they form a trinity that may be one of the most powerful wealth creation tools in modern financial history.
Steem (STEEM) is the primary token of the Steem blockchain and is comparable to bitcoin (BTC), ether (ETH) or bitshare (BTS) tokens. STEEM tokens can be purchased on external exchanges in the same way BTC/ETH/BTS are purchased, or can be earned directly by contributing to the Steemit economy. STEEM tokens are created continuously and the supply of STEEM increases at rate of 100% per year. STEEM is the most liquid of the Steemit tokens and is designed primarily for transactions into and out of the Steemit economy. STEEM is the token traded on external exchanges in currency pairs (ie. BTC/STEEM) and is used to determine the market capitalization of the Steemit economy (ie. Coin Market Cap ranking). Holding STEEM as an investment is not recommended due the high dilution rate (0.19% per day).
Steem Power (SP) is an investment token that enables community members to earn passive income. SP tokens cannot be purchased directly on an external exchange and generally are earned through contributing or curating content. However, members can purchase SP within the Steemit platform by converting STEEM tokens to SP tokens. Converting STEEM to SP is termed “Powering Up” and is a simple procedure involving two clicks of the mouse – there are no complicated order entries, stop limits or brokerage fees needed to invest in SP.
Income for SP investors is generated via the creation of new STEEM tokens. For every 10 new STEEM tokens created, 9 are converted to SP tokens and distributed to SP investors, similar to a dividend in conventional investing. The 9:10 conversion ratio is fixed and will not change – currently the yield on SP is incredibly lucrative. Dividends are paid out in real time and deposited directly to the member’s account – simply refreshing the wallet balance every minute will show an increase in the number SP tokens held in the account. I am guilty of refreshing my wallet frequently just to see my SP balance increase. It is the most inane of actions and yet incredibly satisfying. Community members will sleep well knowing that their SP is working around the clock to make them wealthier.
SP investors can choose to withdraw dividends or reinvest them. If a member chooses to withdraw (termed “Powering Down”) weekly payments are made to the member’s account over a two year period. Investors can redeem any amount of SP at any time, but the payout period is fixed at 104 equal weekly payments spread over two years. This is a crucial feature of the Steamit platform that stabilizes the economy by damping big movements of value and limits the effectiveness of market manipulation strategies that are rampant in conventional crypto (ie. BTC) and fiat (ie. SP 500) markets. The SP withdrawal mechanism encourages members to build a stable recurring income stream that can be used to pay the bills without having to grind it out at the office every day.
Should the investor choose not withdraw SP, all SP tokens received as dividend payments begin earning dividends as soon as they are deposited. This is similar to a Dividend Reinvestment Plan (DRIP), but automatic and in real time. The importance of this financial innovation cannot be understated: SP dividends are paid to investors continuously; all newly received SP tokens automatically begin earning dividends immediately upon deposit and continue earning dividends until withdrawn. Continuous real time compound interest is baked right in. This is an incredibly powerful yet simple financial tool that will change lives and create massive wealth for the Steemit community.
Steam Dollars (SMD) are a savings token that enable community members to hold wealth in a stable currency while earning interest. SMD tokens can be obtained through contributing, converting STEEM tokens to SMD tokens and via external exchange. Whereas the value of STEEM and SP are determined by market forces the value of SMD tokens is 'pegged' to the United States Dollar (USD) via a mechanism involving witnesses and price feeds. For all intents and purposes, 1 SMD = $1 USD. In addition to providing a price-stable store of wealth, SMD deposits earn interest and are liquid (ie. there is no requirement to tie up funds for months or years to receive interest, as is required by CDs or GICs). SMD is like a bank account that pays interest… minus the bank.
A Revolution
Steemit is poised to become a sweeping revolution in social media and personal finance. It is a dynamic and global community that rewards hard work and participation, but it is also a village with the tools and resources to provide income and financial security to its members. Steam Power is an awe-inspiring financial innovation that is the beating heart of the Steemit community, funding the freedom to pursue dreams, create change and… retire in comfort. I have never come across a technology that combines interaction, creation, contribution and reward as seamlessly and effectively as Steemit does. It is easy to forget Steemit is still a beta release and has only been around for a few months - it feels like an established and thriving community. Word is getting around quickly and the next few months are going to be very, very exciting. Steem on!
If you’ve made it this far, thank you for your time! Feel free to share this post with anyone you feel would benefit, and questions or comments are always welcome and appreciated.
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Welcome at least my hero-friend...
OldMan !!!
Thank you - great to see so many of the Bitshares folks here!
Thank you for posting. Hope you get ever more to snowball to the top!
I up-voted you too... BTW, should steemit let us steemers advertise using steem? Be sure to tell everyone you know to come vote here at: https://steemit.com/steemit/@kingtylervvs/if-steemit-ever-does-decide-to-advertise-there-is-only-1-way-it-could-work-in-my-opinion-debate
This is a democratic community decision.
SCREW YOU ALL!!!!! https://steemit.com/investments/@resten/so-i-finally-realized-i-m-a-total-useless-idiot-on-steem-i-m-leaving
Actually Steem Dollars can now purchased on external exchanges !
https://poloniex.com/exchange#btc_sbd
https://bittrex.com/Market/Index?MarketName=BTC-SBD
PS Abbreviation of SBD = Steem Backed Dollars
or just SD = Steem Dollars (not SMD please edit)
Yeah I've already converted back and forth multiple times into the different currencies. It works very well and is simple on the first platform named above. The second platform named above I've had some difficulty with but I think it was on their server side.
Great catch, thank you! I've updated the post accordingly. This is moving incredibly fast...
Ha, thank you again. Fixed the dollars, think I got SMD from the whitepaper or could have just been the 2am mental abilities. Either way, thank you!
@oldman "Steam Dollars (SMD) are a savings token that enable community members to hold wealth in a stable currency while earning interest." Does it earn interest? My understanding is that only Steem Power earns interest. It's one of the incentives to locking it in the ecosystem for 2 years.
Steem Dollars earn 10% annual interest right now (interest on a stable currency)
SP is like a share in a company that is protected from STEEM dilution, not the fluctuation of STEEM price...
Just so, thank you!
What's the use of buying a Steem Dollar? Isn't it just a USD $1 worth of Steem? @liondani
Steem Dollars don't go up and down in value like Steem or Steem Power does (ie. up 45% today, down 45% tomorrow on the exchanges). Steem Dollars allow you to protect your wealth in a price-stable asset. Plus it pays you interest. Plus it's liquid, meaning if you need the money you can get it in a week.
Can you help me and explain how to transfer them from Poloniex? https://steemit.com/steemit/@decrypt/how-do-i-send-steem-or-sbd-from-poloniex-to-steemit
btw I was mining pts in early november 2013 :)
I am new to Steemit, and this was the most comprehensive and clearly written elaboration of the platform. After reading this, I believe I understand how the system works a lot better. Thank you.
Agree . Very very well writen . I'm new to Steemit as well and it hard to find any source about steemit on youtube or other website beside in Steemit. I think most of the source are lay out here because mass majority of people are writing about steem at Steemit.
Thank you for your feedback! You are probably right - people are choosing to put their time and effort into Steeming rather than other social media platforms because they can get paid. Probably a trend here...
Great to hear this helped you along, thank you for your comments! It took me a while get my head wrapped around the basics and I'm still not sure I've really got it yet.
Thanks for the quick response.
I have one question I have been pondering. In the first post that I made I received about 20 votes and the post says I have earned about 90 cents on it. However, another guy has a post in the same category, and he has about the same amount of upvotes, yet he has a potential payout of 20 dollars on it so far.
I have a sneaking suspicion this has to do with voter influence and STEEM power, but I am not quite sure the specifics and dynamics. Mind clarifying this for me?
SP is dynamic throughout the day. The more SP a person, the more value they bring. But the more they vote that day, the less each of their vites is worth. Also the timing of their vote relative to others who vote on a post affects the value.
Pheonike nailed it - it is the voting power of individual votes, rather than the total number of votes, that determines the payout.
Your post was featured on:
https://steemit.com/life/@gavvet/daily-pick-of-hidden-gems-2-featuring-dragonslayer109-s
when it was still a baby.... congrats.
That's awesome, thank you for the heads up!
I like this post.
I'm glad to be of service!
Nice to see you here!
Yes, a bit late to the party but no time like the present. This is going to be an interesting ride...
Welcome oldman!
Hi Tuck! Thank you, and great to be here. There's so many of the Bitshares folks around it's like a reunion...
SMD is also SBD from what I've seen on the exchanges. I really like how you emphasize the importance of the passive income component to what has been brought to Market. This truly is revolutionary and you did an absolutely fantastic job describing that in your article. I really enjoyed the read.
Yes, the whitepaper calls Steem Dollars SMD. But SD is much more intuitive and will likely dominate.
Passive income is freedom - the wealthy know this but it is like a dirty secret. I don't know why we aren't teaching our kids about passive income in grade school. The revolutionary concept is that members will earn substantial income without needing to understand investing. It's going to change the world.
Thank you for your kind comments, it's great to hear such positive feedback!
https://steemit.com/steemers/@livetofly/addicted-to-steem-you-need-to-see-this
Great post, upvoted. I can confirm lost sleep and distraction that is directly attributable to Steemit....
As we all have!! :)
It's ridiculous. It really is.
thats what STEEM is https://steemit.com/steem/@nioctib/400-000-000usd-marketcap-steem
Upvoted!
Excelent post - Resuming your post - Steemit is simply a social revolutionary media
Yes, it is a revolution and I think we are seeing the tip of the iceberg.
ps:
How to withdraw Steem from SteemIt? :)
I'm actually not sure as I don't yet have any Steem to withdraw... ;)
You sell it on the exchange. Click on the menu and then Market.
I am also new! I actually only joined today :)
Welcome, you will find the community is very supportive and there is a great vibe. Throw down a post and see what the world thinks! It's a great experience.
Wow what an awesome read....I'm new to Steemit and really didn't get it until reading your article...Thanks
This make it all worth it. Thank you, and welcome!
Welcome! I am also new here and have been trying to figure our steemit on my own during the last couple of days here. After reading through your post I must say that I think it is a great summary of how steemit works. Hopefully more people will take there time writing posts like yours to educate the community. Since it is very hard for new people to wrap there head around how everything here works. Especially when there are not many resources available at least not from what I have found.
Welcome! Steem is a confusing and moves very fast when you're new, but folks seem to be catching on. Thank you for your feedback, it's great to know the post was helpful. I agree there's not a lot of conventional documentation, but I think that is intentional. Forces us to have these conversations! ;)
Coin could all overtake easily, it is really a good thing to blokcheyne, all promise to do something about raising money and pulled, and everything is done and went public with the finished product, the main thing that no problems with hackers) Fly to coin odnaznachno up IMW .
Steemit cryptos are so much easier to access and use because they integrated into the social media experience. I think many will stay within the Steemit economy out of sheer convenience, and there is nothing that drives adoption more than convenience.
I'm new here, thanks for the post was helpful
perfect
:D
Thanks, as a new user I appreciate articles like this one.
You are welcome, and thank you for your feedback.
I am also new to steemit, as well as many other crypto start-ups and am grateful for your blog and amazed and what is being produced and launched on a daily basis around the blockchain possibilities. Thanks:)
Welcome! I've been in crypto for a few years and it is a fascinating and rapidly moving industry. You never get bored... Thank you for your feedback and I share your amazement in how quickly crypto is evolving.
Steem is the crypto, or not?
Correct, STEEM is the unit of account on the Steemit blockchain
By Goerge! I think he's got it!
Getting there, it's quite a thing to get. Cheers!
Welcome to Steemit. Nice to see you again!
It's a been a while, great to see you're hear as well!
This might help too :)
https://steemit.com/steemit/@cultura.bitcoin/steemit-decentralization-of-the-paradigm-of-writing
Solid post, and interesting. Upvoted!
Thank you for this great summary! Very helpful for a newbie like me! ;-)
I think it's a very exciting journey to come...
You are quite welcome - thank you for your vote and your feedback. Yes, this is just getting started - we are at the Facemash stage right now, not even out of the dorm room yet.
welcome
Thank you!
upvoted, gj @oldman 8]
Good work, I enjoyed reading that. Loving Steemit and been Spread the word. Up voted for you oldman.
Thank you for your feedback and you vote! I'm actually surprised at how many people seem to be making it all the way through, maybe Steeming will be a retirement hobby. Cheers!
well that's a great info..i like it!
Thank you - there's lot of good stuff packed in there, happy people are getting something out of it!
Hi. Is there a set interest rate you earn on Steempower?
and
How did you figure out that the dilution rate is .19% per day?
"Holding STEEM as an investment is not recommended due the high dilution rate (0.19% per day)."
The 'interest' on Steem Power is 9 out of every 10 new STEEM units being divided among people holding Steem Power, so the interest rate changes constantly. You can estimate your interest by writing down the number of Steem Power you have, waiting five minutes and refreshing the wallet page. You SP balance will have increased - if you subtract the two numbers and divide by 5 you get your interest rate in SP per minute.
STEEM dilution rate comes from the whitepaper (100% dilution per year).
Congrats @oldman, even though you are an old man :) you made a very detailed and great post!
Could I have your permission to translate this post to italian to help those Italians who don't speak english (and unfortunately there are many) to have an idea of what Steem is?
Take care
Francesco
Grazie per le gentili parole! Sarei onorato se si può usare questo articolo per diffondere la parola in italiano, non esitate a utilizzare l'articolo in qualsiasi modo si vede in forma. In bocca al lupo!
i read and read articles here but anyway still can see the whole picture how it works.
Post -> Get Paid Steem and Steem Dollars -> Buy Steem Power -> Retire
:D
Thanks for alot of usefull information :)
You are welcome! Thank you for your comment and you vote!
Please somebody reply a number 3.
https://steemit.com/steemit/@site/lets-go-to-count-and-see-what-happens-experiment-on-steemit
Thank you!
I am a total newb at this. Lets just call me an investment idiot. What you wrote was amazingly well put together! Great post. Unfortunately, Im basically to dumb to understand it. Hey, at least I admit to m dumbness but I bet that will all go away once its time to cash out. I have a way of finding my brains quickly.
Thanks for the info .. I'm new to STEEM and this was a great place to start the journey .
Thank you for this great post! Will definitely share this when inviting new users.
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hello... please vote my blog, coment your blog and i vote too
https://steemit.com/steem/@ahay/awal-mula-saya-mengenal-steem#
You are welcome, great to be here!
So much happy in so few words, thank you!