Not easy to understand the overall concept of Steemit because its economic fundamentals quite different from other cryptocurrency. Reading the document whitepaper Steemit 44-page thick is also quite confusing head especially if not impatient. The purpose of writing this article to share an understanding of Steemit so far. It should be understood that sy is also just beginning to learn it and not a Steemit expert, if there is one please understand and more happy if you want to help correct it by commenting below this article.
Steem & Steem Power & Steem Dollar
To understand the fundamental concepts of the Steemit economy, we must understand the functions of these three values. First ... Steem is a unit value that we can buy directly on the Bittrex platform exchanger, and note that it does not work like a BitCoin where it is stored as a value asset because every year Steem's total supply increases 2x.
How is Supply Steem created?
The answer is from Proof of Work when solving a block. Steem can be mined through Windows and mining power is determined based on your Processor, not GPU like Ethereum. So ... Steemit Network starts from 0 supply and based on what's written on its whitepaper: there are about 800 new steems created every minute.
Second ... Steem Power is the value of a convertible unit of Steem. For you to re-convert from Steem Power to Steem takes 2 years, gradually as much as 104x payment. Why 104x payment because steem power you convert to steem will be paid every week .. Due to 1 year there is 52 weeks then 2 years equal to 104 weeks. This process is called "Power Down"
The advantage of having Steem Power is that we get Steem every time New Steem is created (still remember the above mentioned point that steam supply will continue to increase every minute?) In other words ... by steem conversion to SteemPower ... we are guaranteed to get Steem quantity (in Steem form Power) over time running rather than storing your Steem.
Each new Steem creation: 90% of the steam will be distributed to the Steem power holder in the Power Steem unit. While the remaining 10% will be distributed to those who contributed in posting articles / upvote and comment. In addition, when we are voting on a post ... the bigger the Power steam we hold, the greater the rewards that will be generated during the creation of the steam.
Third is Steem Dollars. Stability is very important in any company's economic success. For that, Steemit has a unit value we call Steem Dollars, which has a fix value (equivalent) with 1 US Dollar.
Is a Double-Blend Supply Steam 2x Fold Then Steem Value Will Drain Over Time?
Really! Only the value of Steem will drain as time passes but the value of Steem Power and Steem Dollar units is not drained. Except in the case of certain cases where very many new entrants buy Steem which triggers steam values soared mainly in the first 2 years where 90% steam supply is locked in Steem Power. Also note that every 3.32years, split reversion will occur 10: 1, every 10 Steems change to 1steem.
So ... what's the next question is the purpose of the spelling process? The point is that the value of Steem distributed to Steem users who are actively committed to blog posts and holders of Steem Power units are maintained. All these complexities aim to:
1 We can buy and sell Steem easily as cryptocurrency
2 We can commit to the long term and ensure cability so there is no panic sell that can lead to market destruction.
3 If we commit to the long term, then we will get the rewards.
4 If we contribute (Post, Voting, Comment), we will also be declared
For that .. indirectly, every Steemit user will ensure that the Steemit site is always lively, making it a great success including introducing to people about Steemit and encouraging them to participate
