Tokenomics and STEEM

When you want to explore tokenomics then there are different things that you have to consider I am explaining here. First of all you should know that how a particular token is created and then you should know about the supply and distribution of a particular token that how much supply a particular token have and according to the first question how and at which consensus a particular token is created.

After that you should also know at least basics of the factors if they are involved behind the inflation and inflation of a particular token.

Tokenomics have a great role in the understanding of token economic model which depends upon various factors that include staking, burning and locking mechanism. When we talk about taking when it is defined as stake of some of your tokens or holding of some of your tokens into a particular wallet for supporting the blockchain operations and for the purpose of earning rewards. Burning refers to the removal of tokens from the circulation which may leads to a lot of benefits include increase of scarcity and it also drive up the price of that particular token. If I talk about locking mechanism then it is the limitation in the transfer or usage of token for a limited and specified time period and this is done for the incentivization of long-term holding.

Tokenomics along with the understanding of technical aspects also involves the understanding about market dynamics and sentiment of investors around a particular token. there are several factors that are important for the increase and decrease in the token price and over all capitalization of the market and these important factors are demand in market, volume of trading and perception of investors.

Tokenomics very from one cryptocurrency to another cryptocurrency project because there are unique token distribution, unique usage and economic model a particular project have that's why it is very important to consider all these points before making any investment and before taking any decision about investment.

STEEM is important to understand that this is a blockchain that rewards its content creators by a cryptocurrency which is steem.At steem blockchain users are independent in the creation of their content and curation of content and then they earn. Delegated proof of stake is a consensus mechanism that is used by STEEM, and here users vote for witness that in turn validate their transactions at the blockchain.Witness also receive reward because they keep the blockchain secure and operate transactions very well.

If we talk about distribution of rewards in steem tokenomics then here tokens are distributed among different users depending upon a process or mechanism which is proof of brain so the more a content creator would reduce valuable and engaging content the more he would be able to receive reward.Upvoting other users is also away to earning rewards at this blockchain.

Steem tokens have utility at this platform in the form of power up. Through the power up process it is used for making a user more influential at this platform.Steem tokens are also able to trade to different exchanges so for that reason users are independent to convert their rewards into another cryptocurrency in which they want. Just like other cryptocurrencies value of the steem is also variable and fluctuating depending upon the demand of market and sentiment of investors.