A rather lengthy but informative guide and tutorial for the growing social network Steemit.
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Steemit pays to post, comment and upvote. People are already earning their living out of it. I don’t know about you but this feels like Steemit is onto something, it feels pretty promising to say the less.
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Steem uses 3 different money or tokens. They’re called Steem, Steem Power and Steem Dollars. All three money or tokens have their own separate properties. These 3 different tokens all have their purpose and have a symbiotic relation to one another. This 3 token monetary system is another important part of the whole genius behind Steemit. I’ll expand on these tokens and relations as I go.
STEEM POWER::
Steem users get paid for their posts, comments or votes, every 24 hours or so. These pay are of 2 different, called Steem Power and Steem Dollars. Around 25% of the reward are received as Steem Dollars and 75% as Steem Power. Let’s concentrate on Steem Power first. Every year, except the first year, the number of Steem Power doubles. 90% of the new Steem Power are distributed proportionally to the holders of Steem Power. The 10% left is allocated to posts, votes and comments.
It could be seen as Steem Power holders paying around 10% of their shares as dividend to people who write, vote and comment. Anyone posts, comments or votes will receive a % of that 10%. Whenever a Steem user vote for a post or a comment, the poster or the commenter is paid with a reward. The more Steem Power someone own, the more his or her votes are worth and thus the greater the reward to the poster, commenter, and voter. Here’s how rewards are distributed for each post or comment. 75% to posters or commenters, 25% to curators (upvoters)
You can see the pending payout (reward) for each post and comments at the bottom of every post. The sooner someone vote on a post, the bigger his % of the 25% he/she will get of the curation reward relative to his Steem Power and voting power. Let’s not forget, the more Steem Power one has, the bigger the % of total curation reward. I clarify this, 2 paragraph below with a concrete example.People aren’t voting non-stop for everything because every time someone votes, his voting power goes down 0.5% and then it gets regenerated as time pass 0.5% every 36 minutes. So someone can vote around 40 times in a day wait 36 minutes in between each votes and be voting with 100% of his voting power each time. 100% voting power from someone who own 32 million Steem Power isn’t the same as 100% voting power from someone who own 1 million Steem Power.
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STEEM DOLLARS::
Steem Dollars are Steem tokens worth 1 usd of Steem. If Steems are worth 50 cents usd and you have 1 Steem Dollar you can exchange your 1 Steem Dollar for 2 Steems. What are Steem? Steem are like Steem Power except they don’t double in number every year, they don't influence voting power and they aren’t locked like Steem Power are. Steem Power are locked and can only be change to Steem at a fix rate over 104 week. This is done automatically when you chose to so, it's called powering down. Steem Power are being change into Steem every 7 days.
Changing Steem to Steem Power is called Powering up and the opposite, changing Steem Power to Steem is called powering down. If you have $2000 worth of Steem Power and wanted to sell. You would power down $2000. $2000/104=$19.2 every 7 days. If the price of Steem were to go up during the days you’re powering down, you would still benefit from the price rise. If Steem as gone up 100% one day you will be getting the same amount of Steem for your Steem Power but Steem you would be getting would be worth 100% more, or close to $38 in this case. Steem Dollars also have an interest rate paid in Steem Power of up to 10% a year. More on these tokens are available in the Steemit Whitepaper.
Steem Power double in number every year, like I said earlier. Steem don’t double every year. For this reason, Steem should only be held when someone wants to sell, otherwise holding Steem will penalize the holder. Let’s say, you have 100 Steems, one year later you would still have only 100 Steems.
On the other hand if you have 100 Steem Power, 1 year later you would have approximatively 190 Steem Power, the other 10 Steem have gone to reward users. In effect, Steem Power qualities encourage Steem users to hold Steem Power rather than Steems. This result in people not being able to sell large quantities of Steem at once. This then leads to greater price’s stability.By the way, post reward are paid 50% in Steem Dollars and 50% in Steem Power while curation (upvote) rewards are paid a 100% in Steem Power. This again assure greater price stability.
Steem and Steem Dollars can be sold or bought on exchanges. Steem Power on the other hand can never be sold or bought. They are always lock, until they are powered down to Steem, then some of them are unlock every 7days for 104 weeks as stated above. Finally Steem Dollars can be bought or sell for Steem or Bitcoin. To change your Steem Dollar to Steem Power you have to go through Steem. Steem Power can only be acquired through powering up and through post and curation rewards.
Steemit is a social network that looks and functions a lot like Reddit, but with one HUGE difference: Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.This is possible because the Steemit platform is built on top of a new kind of digital currency. (Think Bitcoin, which is another kind of digital currency that has been around for a while.)
Every day, new units of the currency are created by the network and distributed to its users, who can exchange these digital currency units for actual real money.And it doesn’t cost a dime to get started.
You can create a Steemit user account for free, right now, and be publishing your content directly to the site within minutes using Steemit’s built in blogging/publishing tools.If you’re skeptical at this point, I get it. I was too.But it’s definitely the real deal.In some ways, Steemit is similar to other digital currencies. For example, Steemit currency units can be traded, bought, and sold on the open market just like all of the other digital currencies.
With other cryptocurrencies like Bitcoin, the actual currency units that are created each day are distributed to the people who run a special bitcoin software program on their computers that perform a process called Bitcoin Mining. The amount of computing power you have dictates how much money you get.
Steemit allows for currency mining as well, but it’s not the primary way to earn money. Every day, new Steemit currency units that are created by the network and distributed to the people who engage with the site. The more you engage, the more you get.
People who create content are rewarded for their content. People who upvote content are rewarded for helping to curate the best content available on the site. Commenters who add to the discussions are paid too.
Steem are the units that are bought and sold for actual money on the open markets. You can trade them as you would bitcoins or a company’s stock.
But you don’t want to hold on to these for too long because more Steem Units are created every single day. If you hold onto Steem Units for a long time, they will become diluted and lose value.Owning Steem Power Units is essentially like making a long term investment in the currency because you can’t sell Steem Power Units for 2 years. But there are a lot of good reasons to have Steem Power.
By keeping your currency as Steem Power Units, you will be able to make considerably more money in the long run because you essentially have ownership in the network. As the network grows, so will your piece of the pie.And you’ll be heavily rewarded along the way.
The way things are set up now, 90% of the new Steem Currency that is generated every single day is distributed to the people who already hold Steem Power Units in the form of additional Steem Units. (The other 10% goes to content creators and curators).
Half of the pay you receive for your content will be in Steem Power Units.
Also, the more Steem Power Units you have, the more your curation vote will count. You will have more influence on the site and you will also get paid more for upvoting other people’s work. (When you upvote someone’s work, they will get paid more as well.)
Steem Power Units also play one final and very important role. They prevent massive price swings and volatility on the open markets. Because everyone is locked in for 2 years, we can’t all sell our currency all at once if the market starts to dip, which would crash the price were it to happen.
Steem Dollars are the third and final form of the currency and never get diluted or lose their value. They are designed to be a stable currency that you can sell at any time. When you create popular content, 50% of your pay will be in Steem Dollars.And you’ll be rewarded for holding Steem dollars too. It’s not nearly as much as the rewards for holding Steem Power. But because it still keeps the currency in the network, holding Steem Dollars pays 10% interest.
- You can convert the Steem Dollars to Steem and sell it immediately on the open market for real money, essentially cashing out.
- You can hold the Steem Dollars, which keeps the money in the network and pays you 10% interest. You can sell them at any time. If you think the value will go up and want to sell at some point in the near future, this is your best option.
- You can exchange your Steem Dollars for Steem Power. If you want to invest in the future of the currency and reap the biggest rewards, this is the way to do it. Every day 90% of the new Steem units are rewarded to the people who hold Steem Power Units.10% of the new Steem units are paid to content creators, curators, and commenters.
When you create content that actually earns money, 50% is paid to you in Steem Dollar Units that can be exchanged for actual money right away (or converted into Steem Power). The other 50% is paid in Steem Power. The Steem Power Units are locked up for 2 years. Once you start earning Steem and you want to actually cash out, what do you do?Well lucky for you, several other Steemers have created fantastic guides for doing just that. So rather than go all technical on you, I will pass you along to the people who can explain it better than I can.~
Creating your first post:
To start publishing content, all you have to do is click "Submit a Story" at the top right of the screen.When publishing content, it’s important to format your articles in a way that will make them easy to read. Use images, headings, and subheadings to break up long blocks of text.Use the “” button in the editor to activate the quote feature when quoting someone. And give the quote its own line like this(The quote formatting button looks like thisNo one ever wants to read a solid wall of text, so taking the time to format your article in a way that makes it pleasant to read will be crucial.Once you have an image uploaded, simply click it, and copy the URL for the picture. Imgsafe gives each picture its own unique URL that you will use in Steemit to insert the picture into your post.In the Steemit editor press the insert image button and paste the copied image
The best advice I can give you is to explore the trending topics/tags as well as the trending posts within those sections and see what kind of content people are responding to.