Steem is a blockchain-based social media platform. It's similar to Reddit except you're paid for your participation. It relies on three virtual currencies Steem, Steem Power and Steem Dollars.
- Steem can be traded like any cryptocurrency. By purchasing Steem and powering it up it into Steem Power, the holder will earns more Steem in rewards and voting power. The total number of Steem doubles each year. Every 3.32 years, a 10:1 reverse split occurs (10 Steem becomes 1).
- Steem Power rewards long term holding. Steem Power is non-transferrable and will require 2 years and 104 payments to convert back to Steem. 90% of the new Steem goes to anyone holding Steem Power. 10% of the new Steem goes to anyone voting on a post or contributing.
- 1 Steem Dollar = 1 dollar value stored. Can be transformed back to Steem after 5 days. Holding Steem Dollar pays interest.
Steem rewards you for Posting, Curating, Holding, Saving, Mining, Market making
1) Posting: Creation of new upvoted content (50% Steem Power, 50% Steem Dollars). Create meaningful, original content. Post often. 25% of the total payouts allocated to a top-level post will be split among all comments proportional to the votes the comments receive.
2) Curating: When you are among the first to upvote future popular content (Steem Power). Users with vesting STEEM have the ability to vote on posts. If you vote immediately after a post is made, then 99.94% of the curation reward will go to the author. If you vote after 15 minutes, then 50% will go to the author. Any votes made 30 minutes or later 100% will go to the curator. This only applies to the curation rewards. The author still gets at least 50% of the total rewards. Voting Power is rate-limited and decays by up to 5% every time a vote is cast. Voting Power regenerates to 100% over 24 hours. To maximize total Steem Power applied to posts, users should vote on at least 20 posts per day. You can check the rewards of a post by going on the post and changing "steemit.com" to "steemd.com" in the adress bar. Then click advanced mode, Vote details.
3) Holding (long term): Steem power earnings, need to commit for at least 2 years.
4) Saving (short term): Steem Dollars interest. 5 days to turn back to Steem.
5) Mining: Steem can be mined (Ubuntu, Windows). Mining requires operating a full node and building Steem from source. A witness is any full node that processes and validates blocks. This is a necessary prerequisite to produce blocks. Once your proof of work is accepted by the network it is critical that your node stays connected so it can produce a block at the scheduled time. Each round (21 blocks) one miner gets to produce a block. A round can take at least 63 seconds if everyone produces a block. The miner queue length is proportional to the difficulty. Difficulty doubles with every additional 4 miners in the queue.
6) Market making: Free trades and subsidized liquidity providers. In the long run, 1% of market capitalization is awarded to liquidity providers each year. Every hour the account with the highest accumulated points is paid 0.000114% of the market capitalization and then their points are reset to 0. Any liquidity provider who is inactive for over 1 week also has their points reset to 0. In the short term 1200.000 Steem is paid every hour until 1200.00 Steem is less than .000114% of the market capitalization.
Detailed rewards info:
https://steem.io/getinvolved/
update 0.8
I'm new and may have missed something. Also, there are often updates. I would be happy to hear your feedback, all help appreciated. Thanks!