Hello Friends! Yesterday, I played host to another session of a program with newbies on @redfishpillar's blog that I title - Ask Me Anything (About Steemit) Wednesday, AMAWED. 

Not less than ten (10) questions were posed during #AMAWED in this blog post.  My able team members, @oluwoleolaide, @eurogee, @sweetestglo-eu, @honourmaus, @tj4real, who helped to facilitate the process, were just amazing. I am grateful to them all. All the questions were unique. However, one question stood out, which is the reason why I am writing this post. I hope that we would all get to grasp the major concept of the steemit algorithm from comments that would be got as feedback. 

Credit source

The Steemit Bluepaper

The concern and question of the newbie, @prettycynthia, centers around one main theme: Where does the steemit money come from? When she stated her concern, I quicky remembered that I had read something related, first and foremost from the question and answer (Q&A) section of the steemit website. and then very recently from the  steemit bluepaper on steemitblog released last week. 

Concern And Question of @prettycynthia

 
prettycynthia 48  ·  yesterday

Thanks ma. I have been doing my part if that's the case. But i face this challenge each time i preach the steemit gospel.."they always ask where the money come from"..you know plenty Nigerians have fallen victim to some fraudulent ponzi or the other and that mentality of anything internet being a ponzi is a big problem. Immediately i talk to anyone about steemit the question i always find difficult to answer is "where the money comes from question.What's the best possible way to explain this to a person with the dullest brain? Thanks.

Source: https://steemit.com/redfishpillar/@redfishpillar/ask-me-anything-about-steemit-wednesday-amawed-exclusively-for-newbies-2-join-us-from-10-30-am-today

My Contribution And Response To @prettycynthia

maryfavour 59  ·  11 hours ago 

You are most welcome, @prettycythia. I understand most of the issues with ponzi schemes and the reason why many Nigerians now ask, where does the money come from. I am going to begin by stating that none of the cryptocurrencies are really money. They are cryptographic tokens that people value and that value is what is exchanged for fiat currency(government approved currency) e.g Nigeria Naira (NGN). That said. I will go ahead to paste an excerpt from the recent steemit bluepaper, page 2 below

The Rewards Pool (“Where do the tokens come from?”)
One of the most innovative (and most misunderstood) aspects of the Steem blockchain is the
“Rewards Pool” from which tokens are distributed to valuable content creators. In order to understand
what the Rewards Pool is, one first needs to understand that tokens are produced differently
in DPoS blockchains than they are in PoW blockchains. In traditional PoW blockchains, tokens
are produced regularly but randomly distributed to the people whose machines are performing
work (“miners”).
Different from PoW-only cryptocurrencies, tokens in Steem are generated at a fixed rate of one
block every three seconds. These tokens get distributed to various actors in the system based
on the defined rules of the blockchain. These actors, such as content creators, witnesses, and
curators, compete in specialized ways for the tokens. Unlike the traditional PoW means of
distribution, where miners are competing over raw computing power, the actors in the Steem
network are incentivized to compete in ways that add value to the network.
The rate that new tokens are generated was set to 9.5% per year starting in December 2016,
and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation
will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5
years.
Of the supply of new tokens created by the Steem blockchain every year, 75% of those tokens
compose the “rewards pool” which are distributed to content creators and content curators.
15% are distributed to vested token holders, and 10% are distributed to Witnesses, the block
producers cooperating inside Steem’s DPoS consensus protocol.

@maryfavour for @redfishpillar project 

Source: https://steemit.com/redfishpillar/@redfishpillar/ask-me-anything-about-steemit-wednesday-amawed-exclusively-for-newbies-2-join-us-from-10-30-am-today

This is not the first time that people have asked me this question. I try my best to respond, based on what I have read from the Q & A  section of the steemit website and my experience as a user of the platform. Moreover, Cynthia asks

What's the best possible way to explain this to a person with the dullest brain?

I would like to paraphrase @prettycynthia's question by asking 

What is the best possible way to explain where steemit money comes from to someone who has no understanding of what blockchain is and how it works? 

Design of the lovely banner for @redfishpillar was by @royalfinest and divider by @outhori5ed. The generic footer was sourced from here. 

                         

Follow @maryfavour & @redfishpillar

Thanks for reading and contributing!