Topic: Who is paying for Steemit? (Read 501 times)

Answer is here.

In short, everyone who owns the STEEM token pays for the rewards which are created by minting new STEEM tokens out-of-thin-air, but this burden is disproportionate because whales are able to redirect most of the money supply dilution to themselves via their numerous sockpuppet bloggers.

It is analogous to a masternode or proof-of-stake coin, where the whales siphon off most of the transaction fees and any minting of coins disproportionately.


Incorrect. Steem Power (how many STEEM tokens you have locked up for 13 week holding period) determines your power in the voting and curation rewards.

The reputation thing is just a number which has no real impact other than readers see the number on all your comments. I have a high reputation at Steemit because I joined in July 2016, but my Steem Power is low because I sold most of my STEEM.

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And because afaik the whales can route the voting rewards (via their sockpuppet bloggers) and curation rewards disproportionately to themselves, the distribution only gets more unfair over time.

And the disproportionality is afaik even worse than proportional to the whales’ disporportionate share of the Steem Power, because a square power had to be employed else the system could be gamed and destroyed. I had explained that in more detail in my blog from 2016.

The entire concept of voting on dilution of the money supply is insolubly flawed. Again read the linked blog from 2016 which explained it.

You have to post for weeks, to comment and vote to get some steem. They are saying that steem value is going to increase in the future, but I am not certain. I tried to post in the steemit, also to comment and vote. There are some posts saying that one can earn tremendously if one post, comment and vote every day. I am not certain of this as I could not get an amount of steem bigger than 10-30 cents. Some make big money from steemit, I could not do this.
 

isn't the Steemit token there for the readers to pay/donate to the authors of the posts there?

Thank you for posting this.  I've also wondered where the steem payouts come from for the authors and curators.  I assumed it was newly minted rewards, but I wasn't entirely sure.  I also understand that you are more likely to get future rewards if you hold a lot of steem in your account, so if you want to be a steem author that gets noticed, it is advisable to purchase some steem off a exchange and hold it in the account you publish from.  

Steemit is very weird project. Its coin basically has no value inside their ecosystem at all other than getting steempower. If you don't have enough steempower well, so bad, you will never have unless you suddenly get millions of votes. I think it as a blog was good idea but it doesn't really work as coin. Everyone sells it.

Okay, now I understand the plan behind Steem and his potential pitfals. Thanks for replaying!

Yes, The system isn't fair I think. If you have more steem power you will earn more by voting. The distribution of the power is unfair between the participants and the dev, the dev got more power so that the participants or members should buy the power a lot of BTC. if not you will do nothing there, the post with high quality content will not earn you steem if the high power member vote for your post. I joined few months ago  and earn few dollars. It s the same as one twitter bounty reward, I think you waste the time by joining steemit.

Similar to central banks:

Create a currency, give it a use, make people believe in it (value) and use it, prices increase (inflation), print more.

The world is one giant Ponzi scheme.

Steem has value because people believe it does and they use it.

Where does $ or £ get their value from, they are not backed by anything tangible. Belief system supported by data. Just like Steem.

People stop believing in and use Steem it will have little or no value. A bit like the currencies in Venezuela and Zimbabwe.

Those that want a voting power should buy steem. Those that write articles then gets this power and sell it to guys that want it. Article writers should eventually started writing as those with power wants so will get voted up and gain. This is a logic behind it. I am not sure if it works. I made account there a year and a half ago, did not log for a year or so.

Lest say. Tobaco industry makes account and buys steem and fills account with Steem power, then they start up voting articles and authors that advertise smoking lifestyle. More and more people that post will adapt to it since will love to get some of steem dollars love and will start write about how healthy is smoking and how cool cigarettes looks on you.

They are doing promotional articles and things. The advertisement revenue would be the prime income for the project sooner or later.
Initially it wanted to attract as many people as possible, when traffic comes, they bring money with them.

Okay, after reading the rest of the replays I understand that on steemit you have benefits if you have more steem. So if you have more steem you can vote more -> you can get more reward (because you vote for more good projects). Is this right?

I understand that alts are being trade on exchanges such as bittrex. What I mean is...okay, you said Steem is a token just as bitcoin or another regular alt...so steem has a fluctuating value that is determent by bit/ask...but because Steemit is making every day more steem, I don't understand who 'bit' for steem.
To me it's like...for instance I want to build a house, but I don't want to do it myself so I say that people can help me and I pay them in a self-invented token X. People wouldn't help me, because that token X has no value because I can make as much as I want and other people will not except that token for that reason.
I know that every day there is a bit more bitcoin to pay the miners, but that is only a little bit. Steemit is making every day more and more steem to pay the people for there artikels, but it costs them noting because they just make it out of nothing. So want I don't  understand is who wants to have steem, as every day there is coming more out of nothing.

Who is paying? those bagholding the tokens are the ones paying for it, I have tried to look into the project but my main concern is that is has no use case I mean the token itself because it is not like you are paying for the procotol or so, the idea is very good but the design seems like a ponzi to me

As my own understanding , all the payment to authors and curators is through a special mining , where same like BTC , every 10 mins one block and each block have certain amount of Steem as reward , authors and curators is like the miners , as of why do ppl buy Steem in exchange , it is just like why do ppl buy BTC? It's a type of investment if you think Steem has potential , besides I think if the dev decided to take ads from advertiser in the future, these advertisers will pay in Steem which increase the demand for it

Just my understanding , tell me if I'm wrong

I don’t know either, some I research Steemit is a social news service which runs a blogging and social networking website on top of a blockchain database, known as Steem. The service produces STEEM and Steem Dollars which are tradeable tokens users obtain for posting, discovering, and commenting on interesting content. And also Steemit runs on top of a decentralized network named Steem. Like Bitcoin, Steem is a blockchain with transferable tokens. And there’s I found out who is The project, was founded in 2016 by Ned Scott and Dan Larimer, creator of BitShares The two are founders of the Steemit Inc. company, which runs the Steemit website and funds ongoing development of the platform. On March 15, 2017, Larimer announced his resignation from the company that also I found out.

You can buy and sell steem on exchanges like Bittrex.

As to why buy Steem? Because if you power up you can make quite a nice return from curating, so it's a pretty good investment. And of course some people buy it for speculative purposes just like any other alt. And some people buy and sell digital goods and other stuff with it too on Peerhub

https://www.peerhub.com/

To add, STEEM has a cetain reputation to each members, the higher the reputation the more likely you can upvote a certain topic there. To get reputation means you should have many followers and to get followers, you should have a good content that the members of STEEM society would like and if they liked it, they can upvote it with dollar. There are already members with more than 500 followers and that is enough for them to earn something in steem power. They already have conversion there so you can see your steem power in dollars. I am just a member in steem i only have 110 followers and i have the dollars but that is for privacy.

What do you mean by to who ? To any exchanges that deals with the token !
For any token in the world , you'll find people on exchanges who are buying and selling it to benefit from price changes. Steemit doesn't buy anything back from you.

Just take a look at Bittrex for example. You'll surely find it there. Register an account and deposit STEEM and sell them for bitcoins. I guess you're brand new into crypto. There's millions of coins and tokens that can be traded there.

Here is the link to STEEM market on bittrex. :https://bittrex.com/Market/Index?MarketName=BTC-steem

Note: I have no idea if people actually got paid out from it or not as I recently joined it and the nearest payout is supposed to be in 2 days (not a big amount just $5). When that happens I'll report back here.

I don't know but there is an interesting thread about steem, find it on forum, according to this thread, founders of steem almost running a ponzi scheme. Ponzi schemes will burst ultimately.

Hi Guys, I am trying to do some fundamental research on Steem but there is one thing I don't understand and that i'm not finding the answer on. Who does actually pay for this whole project. They say that they pay the posters of valuable content, by the more likes, and they pay the people who recognize this valuable content. They pay them in Steem, and you can sell your Steem for dollars, but to who? Who wants to get Steem instead of dollars? Does Steemit buy it back from you? With witch money? Or can you sell it to people who want to have more voting power? Or?