Steemit explained ► How does the reward system work?!

in #rewards3 years ago (edited)

How do the rewards really work and how can i increase my own influence and get better rewards? You probably asked yourself these questions and its good that you do it. Hope you find answers in my short explaining video.

You get paid by participating in the steemit network. Participiating means commenting, upvoting, new blogposts and more. There is a money system behind it and it is based on 2 network token,which are called steem and steem $. Both of them are based on a blockchain technology like Bitcoin is.
Steem is the basic token,or in other words it is the financial foundation of the steemit network. The 2nd token, the Steem$ is built upon the Steem Token.

Unlike popular fiat currencys like US- $ or € the steem token does have a predefined inflation each year. In 2016 it was 9,5% inflation and its reduced by 0,5% each year. A big difference to other Crpytocurrencies is, that the blockchain doesnt pay the miners who generate the coins, it does pay the community which interacts on steemit. 75% of all new generated token go into the reward pool for everyone, 15% are payed for holding steem power and 10% is the rewarded for to the witnesses of the blockchain who have the same function as miners would have on bitcoin.

But not to make it anymore complicated. You get your share of the reward by interacting with other users.The amount of the reward differs on the amount of influence an account has. Basically its a point system and the more steempower an account has, the more it can reward to other Accounts out of the steempool. To a certain point it doesn't seem fair, but consider that this is a key element. You can build your way up to increase your influence. Its great opportunity for mainstream adoption as well. Companys can buy into having influence, which will help the network to prosper and attract new Steemians.

I hope that sorts it out a little bit. If you have any question, just post them in the comments section. I will answer them.

You might enjoy the steemit trailer i made as well ►


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Thanks a lot veleje

Great explanation short and simple!

Thank you for tuning in

"...the blockchain doesnt pay the miners who generate the coins."

According to the whitepages, this is incorrect. Miners are paid in SP after 1 month. It's more complicated, of course, when you get into how it relates to being a Witness and such, but ultimately, yes, they do get paid to mine, just not in the traditional way other cryptocurrencies have done.

learned a lot