steemit a quick white paper summary

in steemit •  7 years ago 

What is a white paper and why is it important?

The white paper is an effective way to communicate the bigger idea of a project or a company overall mission. The core content is meant to educate, not sell. In other words it gives a glimpse into new ideas, the culture and most importantly it immediate and provoke innovative reasoning and thinking.

•The blockchain prevents the debt-to ownership ratio from getting too high, by reducing the amount of STEEM awarded through SBD conversions if the debt level were to exceed 10%.

•If the amount of SBD debt ever 1032 exceeds 10% of the total steem market cap, the blockchain will automatically reduce the amount of STEEM generated through conversions to a maximum of 10% of the market cap.

•The percentage floors used to compute STEEM creation are based on the supply including the steem value of all outstanding SBD and SP (as determined by the current rate feed).

•steem holders do suffer from increased dilution if the price falls.

•With a high-interest rate paid on an asset pegged to the US dollar many people will bid up the limited supply of steem Dollars until they are no longer valued at $1.

•In economics, there is a principle known as the Impossible Trinity 4 which states that it is impossible to have all of the following at the same time An independent monetary policy: If steem feed producers aim to have an independent monetary policy allowing it to create and destroy Steem Dollars while simultaneously having full control over the interest rate then they will encounter problems.
The primary concern of steem feed producers is to maintain a stable one-to-one conversion between SBD and the U.S. Dollar.
•If SBD trades for less than $1.00 USD and the debt-to-ownership ratio is high, then the feeds should be adjusted upward give more steem per SBD. This will increase demand for SBD while also reducing the debt-to-ownership ratio and returning SBD to parity with USD. Assuming the value of steem is growing faster than steem is creating new SBD, the debt-to-ownership ratio should remain under the target ratio and the interest offered benefits, everyone.
The consensus in steem Conceptually, the consensus algorithm adopted by steem is similar to the consensus algorithm adopted by companies throughout the world. People with a vested interest in the future value of steem vote to select individuals responsible for including testimony in the public record. Initial Allocation Supply: The steem network started with a currency supply of 0 and allocated STEEM via proof of work at a rate of approximately 40 STEEM per minute to miners, with an additional 40 STEEM per minute being created to see the content and curation reward pools.

SBD operations: - SBD rewards: A percentage of SBD value is created at and set by the witnesses and paid to SBD holders as SBD. The overall supply picture is complicated by the effect of SBD operations, which may result inlarge-scale creation or destruction of STEEM through feed rate following and SBD rewards, as discussed in the SBD section current Allocation Supply Starting with the network's 16th hard fork in December 2016, steem began creating new tokens at a yearly inflation rate of9.5%. The inflation rate decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. For the first 2 years of Bitcoin's life, the network sustained an annual inflation rate of over 100%. For the first 5 years it was over 30%, and for the first 8y ears, it was over 10%. All told the total "Spending" steem does to fund content, curation, and block production amounts to less than 10% APR.

•The price of a digital commodity, like steem, is driven by both supply and demand •Steem recognizes that the value of all user contributions is greater than the sum of the parts. •Steem bypasses micropayments completely because when a user up votes a post, it is the community that pays the bill. Micro-payments: A Viable Busines Model micropayments are paid to the content producer, but those who vote for the content do not pay.

•In other words, the micropayment solution provided by Steam provides a user-experience similar to many widely used websites that have user moderated content. •Steem rewards users who are among the first to find and identify new content Censorship.

•Steem is a decentralized network that is operated by witnesses in jurisdictions around the world.While a time stamping service can be built on almost any blockchain, and several efforts exist to build this kind of service on the Bitcoin network, steem has a useful advantage in this realm because content publishers are "First class-citizens” .

•The steem blockchain is built from the ground up around the use case of content publication, which allows content creators to have the blockchain to validate their content
at a certain point in time simply by writing their post using the same authoring tools used by other steem users.

•Creators posting to social media outlets that are connected to steem may monetize merely by having their work recognized by the steem community. •Conclusion steem is an experiment designed to address challenges in the cryptocurrency and social media industries by combining the best aspects of both.

•Steem presents earning opportunities to content creators and internet readers in ways that have not existed within the social media industry. Within steem, individuals earn real rewards online that are directly correlated to their contributions.

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