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RE: Vlog #8: Why a STEEM token represent value A.K.A Where does the money come from?

in #life8 years ago

Yes, you are right. The reward pool is fixed and gives out X amount of steem according to the weight of the votes (SteemPower) of the users. This is new Steem. (The inflation of new Steem created in a year is 9.5%.)

I believe when more users join the STEEM blockchain it's going to be tougher to earn Steem tokens. (more people trying to earn from a fixed reward pool). That's why the early blogger (2016) could earn relatively easy Steem.

To earn Steem now you really have to increase the value of the Steem blockchain as a user. Whether this is done with poor vs. excellent content I can't say. Because what someone considers poor or excellent is subjective. The community gets to decide though.

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Thanks. That is very helpful. So as the number of users grows, more quickly than the growth in steem output, an allocation to a contributing user may be smaller or harder to earn. However, the value of a unit of steem, may be worth more in the future (hopefully) so you may earn less steem but more value for a post.

You got it completely right!

I'm catching on. Thanks so much for your willingness to patiently teach newcomers.