Should you become a witness on Steemit?

STEEM has in internal inflation rate of 9.5%, which means that a number equal to 9.5% of STEEM tokens in existence is created each year to pay for the technology built into STEEM.

Of the 9.5% created annually, 10% of that goes to the witnesses. Now, let's break that down. since 10% of 9.5% is .95%, this is the amount of inflation solely for payment to the witnesses. Further, since the payout to the witnesses is fixed at 10% of the 9.5% annual inflation, their reward, in the form of STEEM tokens, goes up by 9.5% each year in linear fashion with the total amount of STEEM created annually. Plus, This is compounded yearly, so the effect is even more dramatic.

In summary, not a bad gig to be getting a share of 0.95% of the total number of STEEM tokens on an annual basis with a 9.5% raise each year baked into the equation. I doubt many of us get a 9.5% raise each and every year like clockwork. Bottom line, become a witness if you can. It helps you and it helps the Steemit community by securing the blockchain more broadly.

Thank you for taking the time to read my post. I will be posting educational financial morsels regularly so if you would like to grow your investment wisdom, please follow along.

Have a great day!