This might sound a little weird, but they're paid out of the value of the overall system. Overall, the Steem system is worth something; this value comes from all the content that is generated and propagated on Steem. Right now, the market is valuing this at about $250 million US, but this number is changing rapidly. The developers of Steem figured out a clever way to pay a small fraction of this total value to content creators and upvoters. This is done by creating new STEEM (which is basically a currency) and putting it into a pool that's distributed to content creators. When you create new STEEM, you dilute the old STEEM, and it's like you took a very tiny slice of that $250 million and shifted it around so that the creators have more of it than before.
The big question is whether this can possibly continue. I suspect there will be a robust discussion emerging about why STEEM should have any value at all.
So my understanding is they are not us dollar they just emulate us dollars. I dont understand the technical part but for example poloniex has a usd tether as well.
when you deposit 100$ into a bank account your balance shows up as 100$ however the bank loans a portion of the money you gave them to personB for example 80$. Now personB has 80$ in their balance and you still have $100 in your account. Now there is 180$ more in circulation, the bank created $80 US dollars out of no where.
but it gets worse, personB uses his $80 loan to pay personC. PersonC then deposits this $80 into his bank... and the cycle continues over again. And that's only one way of how USD is created.
There are ads. Consider ever single post an advert (even though its not technically an advert). Content providers are given money by the crowd/whales for content that the crowd/whales deems appropriate. In the future advertisers might become whales in this system rewarding those that advertise content relevant to them, or they could pay whales to upvote their content. However the major difference will be that the crowd will be able to see if content is being promoted as those who upvote and their SP are publicly available. Thus resulting in a sort of free market for advertisers, content providers and users. How this free market will play out and whether this will work in practice we have yet to see.
Also this is also dependent on how large the user base is on steemit. The larger the user base the more likely that marketers, advertisers or even propagandists will use money to promote their content.
Essentially steemit is like a facebook without the zuckerberg. It has the opportunity to connect advertisers with users directly, without a third party such as Facebook.
One more thing is speculators, investors and market makers that provide liquidity for people to actually cash out/in. And also the inflation mechanism which incentives people to convert their STEEM into SP and SD locks up a lot of the supply, thus driving the price up and consequently getting more people to buy STEEM for speculation/investing, which in turn allows people to cash out from SD/STEEM.
In conclusion advertisers, marketers, speculators, investors, market makers and casual people buying into the system are the ones that pay content creators.
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This might sound a little weird, but they're paid out of the value of the overall system. Overall, the Steem system is worth something; this value comes from all the content that is generated and propagated on Steem. Right now, the market is valuing this at about $250 million US, but this number is changing rapidly. The developers of Steem figured out a clever way to pay a small fraction of this total value to content creators and upvoters. This is done by creating new STEEM (which is basically a currency) and putting it into a pool that's distributed to content creators. When you create new STEEM, you dilute the old STEEM, and it's like you took a very tiny slice of that $250 million and shifted it around so that the creators have more of it than before.
The big question is whether this can possibly continue. I suspect there will be a robust discussion emerging about why STEEM should have any value at all.
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So there is no plan to stop making new Steem so for the price to stay at current value, the market cap has to grow every day?
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How are US dollars created? That's the real question.
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So my understanding is they are not us dollar they just emulate us dollars. I dont understand the technical part but for example poloniex has a usd tether as well.
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when you deposit 100$ into a bank account your balance shows up as 100$ however the bank loans a portion of the money you gave them to personB for example 80$. Now personB has 80$ in their balance and you still have $100 in your account. Now there is 180$ more in circulation, the bank created $80 US dollars out of no where.
but it gets worse, personB uses his $80 loan to pay personC. PersonC then deposits this $80 into his bank... and the cycle continues over again. And that's only one way of how USD is created.
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There are ads. Consider ever single post an advert (even though its not technically an advert). Content providers are given money by the crowd/whales for content that the crowd/whales deems appropriate. In the future advertisers might become whales in this system rewarding those that advertise content relevant to them, or they could pay whales to upvote their content. However the major difference will be that the crowd will be able to see if content is being promoted as those who upvote and their SP are publicly available. Thus resulting in a sort of free market for advertisers, content providers and users. How this free market will play out and whether this will work in practice we have yet to see.
Also this is also dependent on how large the user base is on steemit. The larger the user base the more likely that marketers, advertisers or even propagandists will use money to promote their content.
Essentially steemit is like a facebook without the zuckerberg. It has the opportunity to connect advertisers with users directly, without a third party such as Facebook.
One more thing is speculators, investors and market makers that provide liquidity for people to actually cash out/in. And also the inflation mechanism which incentives people to convert their STEEM into SP and SD locks up a lot of the supply, thus driving the price up and consequently getting more people to buy STEEM for speculation/investing, which in turn allows people to cash out from SD/STEEM.
In conclusion advertisers, marketers, speculators, investors, market makers and casual people buying into the system are the ones that pay content creators.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
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