Steemit is, without question, one of the most innovative social media platforms I have ever been part of. Where else can you freely share your interests and checkout quality content while being paid in cryptocurrency? As a fellow Steemian, I feel we all have some form kind of a bond, as a member of this community. Therefore, I don’t think I speak for myself when I pose the question, “How exactly does the payout work on this?”
Let me first say, it is Saturday, October 7 3:17pm. I woke up at 9:15am, had breakfast, stopped by the laundrymat; then started reading the Steemit White Paper at 10:21am and still digesting it.
It is very thorough. However, it presents a sound proposition of what this platform has to offer. What you are about to read is my attempt at explaining, “How Exactly does the Payout Work on this?”
The 3 Currencies
- There are 3 forms of capital used on the Steemit platform; Steem, Steem Power (SP) and Steem Blockchain Dollar (SBD). Think of the Steem of the basic foundation that supports the other two forms. It is exchangeable and liquid.
- Steem Power is steem that is vested. This vested steem allows the user to have special privilege in the community to have influence in how much others would be rewarded when the users votes or curates their content. The level of influence they have is directly proportional to the amount of Steem Power. If you vest your steem for steem power, you have “Powered up” and if you trade the Steem Power for Steem, you have “powered down.” When you power down, the payout begins the following week, in 13 weekly payments in Steem. This provides stability to the platform.
- When you think of STB, think of an “IOU” that steem is giving you. You own steem debt! The amount of this debt grows interest at 15% inflation on the year relative to the total STB of the community. You are able to avoid depreciation or appreciation of your steem in the form of stb. You are ble to trade it out for the market price of steem when it was given. The white paper went into great detail to explain how regulated it is with price control and preventing market abuse by speculators with this particular form of payment to sustain confidence in lenders to the community! Interest paid on a fixed principal sounds safe to me!
Vote
If you didn’t exercise your vote in the past election, Steemit is giving you the platform to do so. As your surfing your feed and come across videos, you may pass out a few likes here and there but don’t get crazy. The upvotes is the median for reward distribution and the power of your upvote (its reward worth) decreases the more your vote on video. Steemit’s logic is that the best content should win out the first upvotes from curators. Besides that, you would need to wait until your voting power recharges to add monetary value to videos again. The reward distribution from upvotes is 50% in SP and 50% in SBD with the option for 100% SP. Niceee.
Go Create
Basically, I understood that tippity top quality content is essential to receive any reward distribution aka “pay out”. As more users enter the community, there is more creative content and the bar is constantly ascending. The Steemit white paper is truly empowering. The mention of rewarding people with ‘sweat equity’ the same as those who contribute monetarily wow’d me. I imagine the mic being dropped after that one.
That is understanding in a nutshell. Please drop a line if there is anything you can add about "How exactly does the payout work on this?" Hope this helps someone out there with this question.