Steem is blockchain database that supports community development and social interaction in exchange cryptocurrency. Steem combines the concepts of social media with the lessons from building cryptocurrencies and their communities. An important key to inspire participation in any community, a currency or a free market economy is a fair accounting system that consistently reflect the contribution of each person. Steem is cryptocurrency first to try to accurately and transparently in exchange for unlimited number of individuals who give subjective contribution to society.
Steem is the basic unit of account on blockchain Steem. All other tokens are getting value from the value Steem. Generally Steem must be held for a short period when liquidity is needed. Someone who wants to enter or exit the platform Steem will have to buy or sell Steem. After Steem have purchased it should be changed to SP (Steem Power) or SMD (Steam Dollars) to reduce the impact of retailing over the long term.
Steem Dollars designed as an effort to bring stability to the world cryptocurrency and individuals who use the network Steem. Dollars Steem created by a mechanism similar to convertible notes, which are often used to fund startups. In the startup world, the convertible notes are short-term debt instruments which can be converted to ownership at a rate determined in the future, usually during a round of funding in the future.