Steemit explained ► How does the reward system work?!

in dtube •  7 years ago 


You get paid by participating in the steemit network. Participiating means commenting, upvoting, new blogposts and more. There is a money system behind it and it is based on 2 network token,which are called steem and steem $.

Both of them are based on a blockchain technology like Bitcoin is.
Steem is the basic token,or in other words it is the financial foundation of the steemit network. The 2nd token, the Steem$ is built upon the Steem Token.

Unlike popular fiat currencys like US- $ or € the steem token does have a predefined inflation each year. In 2016 it was 9,5% inflation and its reduced by 0,5% each year. A big difference to other Crpytocurrencies is, that the blockchain doesnt pay the miners who generate the coins, it does pay the community which interacts on steemit. 75% of all new generated token go into the reward pool for everyone, 15% are payed for holding steem power and 10% is the rewarded for to the witnesses of the blockchain who have the same function as miners would have on bitcoin.

But not to make it anymore complicated. You get your share of the reward by interacting with other users.The amount of the reward differs on the amount of influence an account has. Basically its a point system and the more steempower an account has, the more it can reward to other Accounts out of the steempool. To a certain point it doesn't seem fair, but consider that this is a key element. You can build your way up to increase your influence. Its great opportunity for mainstream adoption as well. Companys can buy into having influence, which will help the network to prosper and attract new Steemians.

I hope that sorts it out a little bit. If you have any question, just post them in the comments section.


▶️ DTube
▶️ IPFS
Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Thank you, that you generally created such a structure as the style. And you let us communicate and earn online

Thanks for explaining this. I think more people need to know how the system works before start using it. But well we are all kind of impatient creatures :) . Welcome to Steemit. God Bless. Peace.

Hello i am a new user can u explain every thing for me pls

Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://steemit.com/steemit/@mouadzeyoune/steemit-explained-how-does-the-reward-system-work

I can't view the video.