Hi Steemians, Happy Holidays and Happy New Year!
This post/Chapter #3 is thought to help new people on steemit, new visitors & minnows to "Understanding Where the Funds from Upvotes come from, the importance of Steem Power and other helpful information" . It is a part of the 11 Chapter series of Posts/Chapters,(Full Guide) to help new people make their way
Before starting this new chapter, in case you would prefer to read the introductory (1st Chapter), here is the link to it:
Chapter 1 of 11: Have you recently Sign up on Steemit and Don't know what to do First - Basic Things for New People make their way easier on the Platform - Part 1: What you need to know to be more confident & get rewarded on the platform?
https://steemit.com/steem/@gold84/chapter-1-of-11-have-you-recently-sign-up-on-steemit-and-don-t-know-what-to-do-first-basic-things-for-new-people-make-their-way
And also, you may also be interested on reading Chapter 2 of 11: Focusing on the Details of the Steem Wallet to learn as much as possible How to use it - Transfer Steem SBD - Convert it to ETH LTC Bitcoin or other Crypto - This is part 2 of the 11 Chapters (Full Guide) to help new people make their way.
https://steemit.com/steem/@gold84/chapter-2-of-11-focusing-on-the-details-of-the-steem-wallet-to-learn-as-much-as-possible-how-to-use-it-transfer-steem-sbd
Special Thanks for Important People that are supporting to make the 11 Chapter Steemit Guide be reached to the most people hands
Before starting I wanted to add 1 last thing. I am very thanful for all of my followers, and several steemians, as well as @blocktrades , @lukestokes , @steempower , @timcliff , @starkerz , @cryptographic , @teamsteem , @stephenkendal , that are supporting with all their best to make this posts/chapters be reached to the most possible hands.
[Important Note: At the end of this Post you will find the Chapters Index, were you can find detailed information of any of the topics you would like to learn]
My main aim here with this full Steemit guide of 11 Chapters is to give new visitors, new users on steemit, minnows, (and for the ones that have been here for a week or 2 and are struggling to earn some rewards), all the needed information to help them understand the steemit platform and steem blockchain as much as possible and as easier as possible, and thus help them make their way on steemit. This means at the end, more people achieving success on steem, more stories for the world that steem is achieving freedom and empowering people, as well as returning the power to the hands of people. This are the aims of its creator @dan Larimer, which is mentioned by @teamsteem in his welcome to steemit post.
So, for those of you who have been here for less than 20 or 30 days, on behalf of the steemit community, let me extend in a LOUD VOICE, a big WELCOME to you.
My aim is to help people understand: the most important concepts, the actions they will do on the platform, the things that they will interact with, learn about the entire ecosystem were steem is being developed, as well as give them some personal advice on how to contribute with the steemit community by adding value, and thus earn rewards.
Since there are lots of things to learn on Steemit and the steem blockchain (and you will see its a never ending learning process), below I will enumerate the learning topics I will be discussing in the series of 11 posts/Chapters.
All this topics I will be talking about are things I have learned from the very first day I signed up. There are many things to learn in order to make our way on the platform, and for sure I will miss some things.
This is because when we start doing things on repetition, we forget about them, and we just do them automaticaly, so feel free to ask any questions on the comments section. Also if you are a Plankton, Dolphin or Whale reading the post, your contribution, suggestions here will really help new People (Minnows) to make their way, and thus make steemit grow and make it a better platform every day.
So, lets get started with Chapter/Post #3, and learn what is Steem Power (SP), How can we get SP, and How important it is
Chapter/Post #3: Understanding Where the Funds from Upvotes come from, the importance of Steem Power and other helpful information
1- What is Steem voting power?
2- What is Steem and SP (Steem Power)?
3- What happens when we power up? And what happens when we power down?
4- How much votes can we do per day so that it can get recovered at 100% again in 24 hours?
5- Steem applications to check the steem blockchain transactions + check voting power remaining
6- Where do resources for votes come from?
7- What does the reputation number next to your username at the top of your blog means, and what is it for?
Special Credits on this Chapter for: @tuck-fheman , @inventor16 , @blocktrades , @cryptographic , @dantheman (the brilliant blockchain visionary), @penguinpablo , @boxmining , @donkeypong , @rulesforrebels , @steevc , @roadscape , @dan-atstarlite , @cerebralace
1- What is Steem voting power?
So from the first day on the platform, it is very probable you have noticed people speaking or posting about the voting power. If not yet, I believe you will start hearing more and more about it.
To explain this I would like to use a great post that @tuck-fheman made asking about this about 2 years ago (when the platform was starting). The fact I want to use this is because we have a reply from a primary source which is @dantheman its creator. Thanks Tuc Fheman for asking this so early when many things were starting on the steem blockchain.
In the very first comment of this post, @dantheman explains technically how steempower is calculated. ( https://steemit.com/steem/@tuck-fheman/how-is-voting-power-determined-in-steem ).
Now, a simpler explanation for the user to understand its everyday usage, is very well explained by @inventor16 . He states that: "Steem voting power is the weight that your votes have based on how much you vote in a 5 day rolling window. So if you don't vote at all in 5 days, it'll be reset to 100%, so that your votes will have full weight again". Thanks for this great contribution!
So, if you have 100% of steem voting power, the SBD value of your vote will be higher than the value of your vote at %85 and so on. Each vote you make will take around 2% of your voting power, so if you make around 10 to 12 votes a day, and wait 24 hours, your voting power will comeback again at 100%.
With a steem app called Steemnow.com (developed by the very know @penguinpablo ) we can track the amount of Steem voting power percentage remaining. By the way this is a huge contribution made by @penguinpablo for the entire community. Really appreciated!
Once you are more on the platform you will start noticing of several steemians that ae continuosly helping and developing new functionalities to make the steem blockchain improve, and also make steemit a better place for all of us.
I'll explain more on Steemnow.com application on Chapter #10 in a few days.
You can also see the comparison @inventor16 made here between "steem power", and "steem voting power".
https://steemit.com/steem/@inventor16/what-is-steem-voting-power
2- What is Steem and SP (Steem Power)?
As @boxmining explains in his video, Steem Power is your social influence, is how much your vote is worth. You will earn more from curation and your upvotes will value more. For great details I definitely recommend you to watch his video on the link below.
Just as his blog mentions, @boxmining is looking to help everyone understand how crypto works, and update us on the latest new and stories. Thanks for all your contributions to the steemit community!
Here is the video with the explanation: ( https://steemit.com/steemit/@boxmining/steem-explained-steem-steem-power-and-sbd )
One way of getting Steem Power is by buying steem in an exchange, transfer it to the steem wallet (something we learned on Chapter #2: https://steemit.com/steem/@gold84/chapter-2-of-11-focusing-on-the-details-of-the-steem-wallet-to-learn-as-much-as-possible-how-to-use-it-transfer-steem-sbd), and then use the function to Power up, in the STEEM section of the wallet.
Another way is borrowing Steem Power from @blocktrades , which you pay a certain amount of Steem to blocktrades, or a certain amount of BTC, and other cryptocurrencies accepted, and @blocktrades will delegate you Steem Power to your account for an specific period of time. Here is a full article from the very known @blocktrades explaining how to borrow Steem Power (SP) from Blocktrades: https://steemit.com/blocktrades/@blocktrades/blocktrades-now-offering-steem-power-delegations
Thanks for this great service and contributions for the platform @blocktrades !
3- What happens when we Power up? And what happens when we power down?
When we power up steem, we are commiting for a long term on the platform. And the more we power up, the more influence we are getting to be heard on the platform with our posts and upvotes on comments.
If we wanted to get this investment back, before (some months ago) we needed a total of 104 weeks to get the investment back (that was around 2 years). Now its only 13 weeks to get all the steem power back (13 weeks).
So, let me explain the power of powering up steem, with @donkeypong amazing and very smart post. In this publication he compares the great power of compound interest with steem power, and also cites Albert Einstein on it, which also gives a bit of history to the thing.
Personaly I really enjoy some of @donkeypong 's words which are key to success here:
Phrase 1 he makes- "Steemit is built for the long game. You should build your plan that way, too."
Phrase 2: "When that reporter asked Einstein what the greatest invention of all time was, Einstein apparently thought for a moment and then replied, “compound interest.”"
Phrase 3: "Treat Steemit as a long term investment now. It can be your ATM machine later."
I definitely recommend you to read his full article below. Thanks for your contribution about this great feature of the platform!
( https://steemit.com/steem/@donkeypong/would-albert-power-up-you-need-a-long-term-plan-also )
So, now that we explained what happens when we power up, lets explain its opposite, "powering down". When we power down, we'll receive 1/13th of our Steem Power total every 7 days, in liquid STEEM. This means you will be able to receive all the SP you held converted to Steem in a period of 13 weeks. When you power down, your influence will start to decrease every week after the other.
Deciding to do so, its a personal decision. In my believe, I would not power down some of it until a few years from now, because I see a huge upside potential for the steem blockchain, steemit, and the entire ecosystem. We are now in the ground floor, and many developments are launching and will be launched soon, that this are great times to get as much steem as possible. As @donkeypong mentions of my preferred phrase 3 of his post: Steem Power can be your ATM machine later.
As I always mention, this are my personal thoughts and thought of their respective authors of posts, and I recommend you to DYOR (Do your own research to make decisions on buying any cryptocurrency).
With this being said we can move to the next question/item 4.
4- How much votes can we do per day so that it can get recovered at 100% again in 24 hours?
We can do 10 to 12 votes per day at 100% and if we wait 24 hours we'll get the 100% back again.
When you have/reach 1 MilliVest (which today is around 500 steem power), a user can use a Sliding Bar to choose the Vote % power to apply to a certain post. In other words, since you can do a total of 10 votes per day at (100% vote weight) to recover all the 100% of voting power in 24 hours, you can do 100 votes at (10% vote weight) to also recover to 100% the next day.
The good thing about deciding the voting weight with the voting slide bar is that we can vote many more posts and authors per day, and in this way distribute the payout value to more quality content each day. In this way we help more authors, and we have a chance to discover more quality content.
I really encourage you to read @rulesforrebels quality post with video about the voting power slider (how it works). Thanks for this contribution. https://steemit.com/steemit/@rulesforrebels/reached-500-steem-power-and-now-have-a-sliding-vote-power-scale
@steevc has made a quality post with tips on How to Vote in a smart way. I believe this will give great insights for new people on the platform. Thanks for your contribution Steve!
https://steemit.com/steemit/@steevc/smart-voting-on-steemit-100-steem-power-post
So, we have been speaking about steem, steem power, steem voting power, votes per day, powering up, powering down, and several other important things to know from the platform.
Now lets give a bit of focus to the https://steemnow.com/ application so you know how to check your steem power strength remaining, upcomming votes you are receiving as well as pending post payouts (The steemnow.com application and other important applications that will let you check the steem blockchain transactions made will be explained in more detail on Post/Chapter #10)
5- Steem application to check the voting power remaining + application to check steem blockchain transactions
To check the remaining voting power their is a great applicacion called https://steemnow.com/ created by the very known steemian developer @penguinpablo . Thanks for this amazing contribution Pablo!
With one of his last updates you just add your username with the "@", after the site address, and you will directly get the information of your user. For example: https://steemnow.com/@gold84 will check the information of my account.
[I will explain more details of the application on a special Chapter #10]
The other application worth to mention is www.steemd.com created by @roadscape . Certainly it is a very important application for the steem blockchain. Your contribution with this project is very much appreciated @roadscape. This application was designed to check the transactions made on the steem blockchain. Transactions are upvotes, comments, transfer of crypto (steem or sbd), and other type of transactions occuring on the blockchain.
Same as steemnow.com you may add the "@" + username, and you will get the information for the respective user. Here is the example to view my account: https://steemd.com/@gold84
Just replacing my username with yours will let you check your account.
Now that we know more about how to track transactions on the steem blockchain and how to see the remaining voting power, it is time to take understanding from were do the resources/funds we give via upvotes come from.
6- Where do resources for votes come from?
One of the many questions for new visitors (not even users of steemit or the steem blockchain) and many people on the platform is: if I upvote, were does the funds come from? Am I giving my steem/sbd, my crypto to other people?
Here is a post with a great 3.45 minutes video from @dan-atstarlite explaining how the funds rewarded via upvotes come from the Reward Pool (and we don't personally pay from our funds when we upvote). I now, seems like magic, not possible, or not understandable, but the truth is, the funds from upvotes come from a reward pool, not from us.
Everyday 65,000 new steem is created and 75% of it is for the Reward Pool. His video is a must see to understand were the rewards come from. Thanks @dan-atstarlite for this great video.
https://steemit.com/steemit-101/@dan-atstarlite/how-big-is-the-rewards-pool-and-how-much-steem-is-paid-out-everyday
@cryptographic just made a great post explaining about the greatness of the steem rewarding system, something other people and developments were trying to achieve in a way or another, but could not do it. Here is were the disruption of steem enters to the play. Here is his full post that I really recommend you to read it:
https://steemit.com/steemit/@cryptographic/enlightened-self-interest-and-steemit
7- What does the reputation number next to your username at the top of your blog means, and what is it for?
This number next to our name between parenthesis is our reputaion. The Reputation score is one of the main keys to success on the platform. Only upvotes from higher-ranked users will help us increase our reputation score.
When speaking in more detail about reputation I found a really great post from @cerebralace . He fully explains how to calculate the reputation level, and see how much extra is needed to reach the next reputation level.
https://steemit.com/steemit/@cerebralace/your-reputation-score-is-the-key-to-your-success
Thanks @cerebralace for writing this excellent explanation for the reputation score.
Below, you will find the Chapters INDEX, were you can find several important things to know about the steemit platform, steem blockchain, and its community.
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In case you think this post is original and helpful for the STEEMIT community, Please:
Upvote, Resteem, and Comment , so we can all get the most of the benefits of this cryptocurrency journey.
I like to upvote quality comments and suggestions that are good for the growth of the steem community.
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11 FULL CHAPTERS INDEX
Current Post/Chapter #1: What you need to know to be more confident and set your way on Steemit
1- You just signed up, whats next?
2- How fast can I earn rewards on steemit?
3- 3 ways I can earn rewards in the steemiot platform (Posting, Commenting, Curating)
4- What is an upvote, comment, resteem, follow?
5- Lets learn about the wallet area: Basics
Special Credits on this Chapter for: @teamsteem , @cryptoctopus, @timcliff (The voice of the community), @cryptogaphic , @blocktrades , @elear
Chapter/Post #2: Focusing on the Wallet to learn as much as possible about it
1- How to use the Steem Wallet?
2- How to transfer funds from my steemit wallet to a cryptoexchange?
3- What are the 2 cryptocurrencies on the Steem Blockchain?
4- How to convert steem or sbd into Bitcoin, Eth, Ltc or other crypto?
5- Amazing Bonus: The crypto managing spreadsheet and calculator by @lukestokes and Pablo Yabo
Special Credits on this Chapter for: @cryptos , @stanleyfordyale , @steemitguide , @mindhunter , @billbutler, @blocktrades , @thecrytotrader , @ilyastarar , @timcliff (The voice of the community), @steempowerwhale , @steempower , @glennolua , @jesta , @dan-atstarlite , @lukestokes and Pablo Yabo
Chapter/Post #3: Where do Resources Funds on Upvotes come from?
1- What is voting power?
2- What is SP (Steem Power)?
3- What happens when we power up? And what happens when we power down?
4- How much votes can we do per day so that it can get recovered at 100% again in 24 hours?
5- Steem applications to check the steem blockchain transactions + check voting power remaining
6- Where do resources for votes come from?
7- What does the reputation number next to your username at the top of your blog means, and what is it for?
Special Credits on this Chapter for: @tuck-fheman , @inventor16 , @blocktrades , @cryptographic , @dantheman (the brilliant blockchain visionary), @penguinpablo , @boxmining , @donkeypong , @rulesforrebels , @steevc , @roadscape , @dan-atstarlite , @cerebralace
Chapter/Post #4: Keeping your Steem cryptocurrency Safe
1- How can I help keep my steem account safe/secure, by using the different private/public keys on steemit, and keeping safe the ones that do not need to be used?
Special Credits on this Chapter for: @blocktrades , @jerrybanfield , @pfunk , @steemitguide , @thecryptofiend , @dantheman (the brilliant blockchain visionary)
Chapter/Post #5: Other ways to earn on the Steem Blockchain
1- Make Contributions in @utopian-io
2- By delegating SP to minnowbooster
3- By investing Steem, and Powering Up on the platform
4- By delegating being a sponsor in @utopian-io
5- By promoting steemit in your country, city or town with #promo-steem created by @starkerz and @stephenkendal
6- By purchasing a delegation of SP from @blocktrades and curating content on the website. This will not only give you more rewards for the curated content, but will also provide more influence on the platform for the delegated time.
Special Credits on this Chapter for: @blocktrades , @lukestokes , @utopian-io , @elear (The brilliant visionary that created @utopian-io ) , @aggroed , @minnowbooster , @timcliff (The voice of the community), @terrybrock , @steemit , @starkerz and @stephenkendal
Chapter/Post #6: The Vision of its Creators, and the Power of the Steem Blockchain (Current Developments and the Ones in Process)
1- What's the vision of Steem and Steemit?
2- Why is the Steem Blockchain so powerful?
3- What are SMTs, and what are they planning to achieve?
4- What is @utopian-io?
Special Credits on this Chapter for: @teamsteem , @utopian-io , @elear (The brilliant visionary that created @utopian-io ) , @exyle , @cryptoctopus , @jerrybanfield , @mooncryption , @aggroed
Chapter/Post #7: Using bots to upvote quality posts you want to be reached by more people
1- What are upvoting Bots?
2- How to use them with quality posts and to gain more visibility?
3- How to use Bot Tracker by @yabapmatt to help you choose the best bidding bot
4- Important bots to reduce spam and double posting, like @cheetah created by @anyx
Special Credits on this Chapter for: @yabapmatt , @jerrybanfield , @anyx
Chapter/Post #8: How Making Connections with other Smart & Creative People that have our same likes make steemit and our way on steemit better
1- How to make a success path way on Steemit?
2- Getting to know smart and creative people on the platform
3- Collaborate with your knowledge and experience, to help the platform grow
4- Get to know the needs of the Community and see were your knowledge fits in order to help it be a better place
Special Credits on this Chapter for: @cryptoctopus , @timcliff (The voice of the community) , @terrybrock , @bigsilver , @utopian-io , @elear (The brilliant visionary that created @utopian-io ) , @theaustrianguy
Chapter/Post #9: Learning from Experts of specific topics on Steemit
1- Trading
2- Cryptocurrency
3- Investing
4- Steem Blockchain
5- Blockchains
Special Credits on this Chapter for: This will be revealed in the next few days
Chapter/Post #10: Other useful apps on the Steem Blockchain
1- Steemnow.com
2- Steemd.com
3- Steemdb.com
Special Credits on this Chapter for: This will be revealed in the next few days
Chapter/Post #11: Steem as part of a much larger ecosystem
1- Bitshares
2- Steem
3- EOS
Special Credits on this Chapter for: This will be revealed in the next few days
Bonus Chapter/Post #12: Who are Steem Witnesses?
1- What is a Steem Witness?
2- Special personal Thanks for Witnesses that are contributing really huge for the Steem blockchain and Steemit
Special Credits on this Chapter for: This will be revealed in the next few days