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Ways of Contributing On Steemit
This section of steem white paper shows the concepts of how steem rewards the members of its great community that provides meaningful content.
CAPITAL CONTRIBUTIONS
According to the Steemit white paper, contributions can be held in two ways of ownership which includes liquid and vesting. Vesting ownership ensures a long term commitment and cannot be sold until a minimum period of time. In liquid ownership, it can be sold at anytime as it requires no long time commitment. It mostly consists of STEEM, STEEM POWER (SP), and STEEM DOLLARS (SBD).
Let’s discuss a little about these contributions:
STEEM
Steem is the basic unit of account in the Steemit community. In other sense, all other tokens used in the blockchain gets their importance from the value of STEEM. Since it is a liquid currency, you can always purchase more of it and you can likewise sell it or transfer to others.
Steem Power (SP)
Just as companies require long-term commitment rather than short-term commitment so as STEEM. STEEM that has been committed to a thirteen-week vesting schedule is called Steem Power (SP). SP are non liquid so it can’t be withdrawn until you have made a conversion request.
Steem mostly helps with your voting power, its influence over your reward is kind of proportional to the amount of SP that you have.
Benefits of STEEM
Holders of high STEEM have power/ strength within the Steemit platform.
They earn new tokens based on the SP they have.
The amount of SP you have is equal to your reward pool.
#POWER-UP:
This mainly known as when you transfer your STEEM to SP .
#POWER-DOWN:
This is when you transfer from SP to STEEM. Note that SP that is powered down is returned over a period of 13 weeks ( 13 equal weekly payments, starting a week after the power down is confirmed).
STEEM DOLLARS (SBD)
According to the steem white paper,
Stability is an important feature of successful global economies. Without stability, individuals across the world could not have low cognitive costs while engaging in commerce and savings. Because stability is an important feature of successful economies, Steem Dollars were designed as an attempt to bring stability to the world of cryptocurrency and to the individuals who use the Steem network.
Steem Dollars are represented by the symbol SBD, from the acronym Steem Blockchain Dollars. This was created by using a combination of a reliable price feed and rules in preventing abuse. Three factors are considered when providing a reliable price feed. This will be considered in my next post so stay tuned.
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