Steemit explained ► How does the reward system work?!

in steemit •  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. I will answer them. 

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:  

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

Not indicating that the content you copy/paste is not your original work could be seen as plagiarism.

Some tips to share content and add value:

  • Use a few sentences from your source in “quotes.” Use HTML tags or Markdown.
  • Linking to your source
  • Include your own original thoughts and ideas on what you have shared.

Repeated plagiarized posts are considered spam. Spam is discouraged by the community, and may result in action from the cheetah bot.

Creative Commons: If you are posting content under a Creative Commons license, please attribute and link according to the specific license. If you are posting content under CC0 or Public Domain please consider noting that at the end of your post.

If you are actually the original author, please do reply to let us know!

Thank You!

Congratulations @freerool! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

You published your First Post

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!