I wrote this article to be used outside of Steem. I want to learn how to write to the point for people not in the 'know' about Steem. It will take me some time to get it right, any feedback is welcome. This article I made because I can't for the life of me understand why anyone wouldn't want to have some staked STEEM in their portfolio. It comes with so many benefits, one of them being able to risk free invest in projects by delegating STEEM while keeping ownership. How different that is from ETH where you have to part with it to receive a token in return.
Staking STEEM.
When you stake STEEM (staked STEEM is called STEEMPOWER) you get access to so many benefits on the network.
For instance: You get more to say over the inflation distribution of new STEEM.
Staking STEEM is instant. Unstaking STEEM takes 13 weeks in instalments of 1/13 a week.
Staking STEEM offers options for a nice Return of Investment in STEEM or other tokens. It is probably one of the most underestimated benefits of STEEM in the crypto space.
You can use STEEMPOWER to invest risk free in projects by delegating, a process where you lend someone your STEEMPOWER but you never lose ownership.
1. More Resource Credits on the Network.
Transacting on the Steem Blockchain is free. THERE ARE NO FEES! But you need RC's (Resource Credits) to do so. The amount of RC's you have is dictated by the amount of STEEMPOWER you have.
RC's replenish over time.
Example: mine will be full in 2,5 days.
So, all you need is an amount of STEEMPOWER that is equal to your RC's usage on the network and you will be to transact always for free.
You can add more STEEMPOWER if you need more RC's and you can un-stake some (and sell it) if you have too much.
Or even better you can use the leftover STEEMPOWER to invest:
2. Ability to invest risk free by delegating to projects on the blockchain.
It is possible to delegate your STEEMPOWER to other accounts.
The ownership of the STEEMPOWER stays with you while you allow others to use your STEEMPOWER.
Example:
I have delegated a 1000 SP to a project called @steemhunt.
In return they have given me 400-500 HUNT tokens every week.
HUNT tokens recently sold for $0,02 in two different IEO's (Initial Exchange offerings).
I could take back my 1000 SP at any time. It's still mine.
Now that's safe investing!
Example 2:
My dad is a passive investor in STEEM. He has delegated his STEEMPOWER to @smartsteem and @therising. He's looking to make about ~15% ROI in STEEM (1000 STEEM --> 1150 STEEM) this year passively.
The ownership of the STEEM is always in his hands.
3. More say of the distribution of the inflation and governance of the platform.
Staking STEEM makes you an investor in the platform in more ways than just economically.
It gives you more say over the distribution of the inflation of new STEEM and it gives you more say over who governs the platform.
When voting for witnesses (block producers) for instance voting from highly invested accounts count heavier than smaller invested accounts. The weight of your vote counts even if you have delegated all your STEEMPOWER.
Voting for Witnesses is important because you wan't this place governed properly when you are not around. Witnesses are the safe keepers of the blockchain.
When it comes to inflation distribution: this only counts over the STEEMPOWER you haven't delegated.
Example:
The 1000 SP I have delegated to @Steemhunt gives them the right to dictate inflation with that 1000 SP but I get 400-500 HUNT tokens back in return.
Investing in STEEM
There are many opportunities on Steem still to be discovered by investors.
It's not easy understanding Steem, it takes a couple of hours of research, but it's a sleeping Giant.
Steem is now 3 years old and it's bursting with development by the people that get it.
Just look how well Steem is represented in the top 10 of State of the Dapps for instance:
https://www.stateofthedapps.com/rankings
Those are dapps with real use cases!
And once you dive deeper into the those Dapps you will see some of them have FIAT entry points and real revenue streams outside the crypto space (check out @steemmonsters for instance).
That's the start of real world adaptation.
Exciting times on Steem. Keep on eye on it!
I am part of witness @blockbrothers.
Please consider us for your witness vote if you think we deserve it here:
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