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RE: Vlog #8: Why a STEEM token represent value A.K.A Where does the money come from?
Thanks so much for your post. Does the effort of posting, commenting, and upvoting create steem or allocate it among users? Wouldn't the blockchain create the same amount of steem even if there were fewer poster or the content was poor vs. excellent? Just trying to keep learning. Thanks for your help.
Yes, you are right. The reward pool is fixed and gives out X amount of steem according to the weight of the votes (SteemPower) of the users. This is new Steem. (The inflation of new Steem created in a year is 9.5%.)
I believe when more users join the STEEM blockchain it's going to be tougher to earn Steem tokens. (more people trying to earn from a fixed reward pool). That's why the early blogger (2016) could earn relatively easy Steem.
To earn Steem now you really have to increase the value of the Steem blockchain as a user. Whether this is done with poor vs. excellent content I can't say. Because what someone considers poor or excellent is subjective. The community gets to decide though.
Thanks. That is very helpful. So as the number of users grows, more quickly than the growth in steem output, an allocation to a contributing user may be smaller or harder to earn. However, the value of a unit of steem, may be worth more in the future (hopefully) so you may earn less steem but more value for a post.
You got it completely right!
I'm catching on. Thanks so much for your willingness to patiently teach newcomers.