I’ve recently become a 'Steem' Evangelist.
“You should start a Steem blog as quickly as possible!”
“What?!! We get compensated just for a short posting?!”
Let’s go and do it!
And then…
Everyone’s having a mental breakdown.
Why is this blog concept so difficult to understand..?
Hence, I’ve spent some time to explain the concept of 'Steem'.
If you happen to be a Steem coin holder, you should read the explanation below.
I’ve held Steem coins for more than six months. This is my way of understanding Steem and
please refer to other member’s comments if my posting is not sufficient to understand.
So, what the heck is a Steem coin? That's actually very simple. If you hold this coin, it's like a company stock. To exercise your right as a Steem shareholder, you have to go through a process of 'Steem Power Up'.
Proceeding with Steem Power Up for the first time
Steem power = You can exercise your right as a Steem shareholder
If you just hold a Steem coin, you are not able to exercise your right as a Steem shareholder.
For instance, there is a general meeting of stockholders in the stock market, and they have voting rights for deciding the direction of a company. Speaking of this as a Steem version, if a Steem coin holder converts their coin to Steem power, they can participate in 'SteemIt; and exercise their voting right.
You should be aware that if you exercise a voting right on SteemIt, you can only sell your Steem coins through a three-month power down process. Naturally, you would get a high compensation if you have high Steem power.
If you want to check your accumulated compensation, you should check the website below.
https://www.steemnow.com/upvotecalc.html
- Check voting with your Steem power with ID
https://www.steemnow.com/@healings - Check your account evaluation with ID
Newbies might be thinking like this.
Is my Steem coin used for each voting that I make?
The answer is: No
If you do voting (like), it will bring you a fortune! (Money)
It’s called 'Author Reward' or 'Curation Reward'
If 5 dollars is shown when I press 'like' (voting) for a posting that is posted within 15 minutes, all compensation goes to the writer. If a user presses 'like' (voting) after 15 minutes, 25% of the compensation amount goes to the Curator.
Where does the compensation come from?
The company does mining and makes a buffer for its compensation.
Steem coin issuance increases slightly every year.
Therefore, we do not need to worry about the compensation
Compensation system
There are 3 ways of getting compensation when the user makes a posting.
- Steem power 100%
- Steem Power 50% + Steem Dollar 50%
- No compensation
There are those three functions.
I used to choose the first way, but the 2nd way is the right choice for a Steem It user.
Why is that?
Ironically, the Steem dollars have been pumped dramatically.
Here is an example.
Let’s calculate an actual reward of posting where 15 dollars has been written down as a reward.
Among $15, 25% of the total reward amount will go to the curation (people who voted for the posting), and $11.25 will be split into two rewards that are $5.625 dollars of Steem power and $5.625 dollars of Steem dollars.
So, if Steem power is $5.625, and Steem is $7, 0.80 Steem power and $5.625 Steem dollars should be distributed as rewards. If we convert this amount to the current Upbit market price, 0.80 Steem is $5.625, and 5.625sbd is $73. In total, $15 reward will be converted to about $78.625 at the end.
The actual reward is 5 times higher than $15 of the stated reward on the posting because the value of the Steem dollar is 8 times higher than $1.
Oh…. Then we just pump Steem power up, do voting and then celebrate?!
The answer is.. of course not.
http://steemd.com/@healings
If you refer to the above posting, there’s a voting power.
What is voting power??!
Whenever people make a vote, it decreases with a certain %. It recovers 0.8% every hour, and decreases by 1.85% when the user make a full voting. If the user make a voting with 100% voting power, loss and recovery will be offset.
What would be a problem if voting power decreases?
The user can only exercise their voting right depending on the voting power, and if a value of voting is $5, then 90% will become $4.5 and 10% will become only 0.5 dollars
That’s why I cannot overuse it.
Uh..? So then the user can only vote for 10 people a day?
The answer is.. No. From 500 Steem power or more, the user can adjust their power for voting.
This gives you a choice for choosing voting power between 1% and 100%. That means 1% of voting power could give a vote for 1000 users, 10% for 100 users and 100% for 10 users.
This question might come up.
If I do self-voting 10 times every day, it would make 60% compound interest annually..?
Yes, the above problem has been criticized, but if you, the user, does that continuously, it can be restricted as 'down-voting'. Down-voting can be initiated by putting the flag next to the article. So, the user cannot do bad things such as continuous self-voting.
Of course it allows you to do self-voting once in a while if you spend lots of time posting a great article. However, please make sure that you do not make a 'voting alliance' and give voting to each other continuously. Who is voting for other users can be searched because Steem is a block-chain technology based blog.
In conclusion, if you want to make a long-term investment, convert your Steem dollars to the Steem power regardless of its usage. Either you post an article or just vote for other users.
If you only want to make an investment of Steem dollars, do not convert your Steem dollars to Steem power because it takes approximately 3 months to re-convert the Steem power to Steem dollars.
It's all up to you, but I would recommend you to convert your Steem dollars to Steem power, and then start voting or posting. Who knows? It could become a very famous Steem blog and make you a fortune!!
For newbie only this time use introduceyourself