Steem, Steem dollars & Steem Power: An intro
Hello fellow Steemians!
How are things going. I’ve made this post for any newcomer that could possibly clock this post in the feeds. So here it goes…
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Steem, Steem dollars & Steem Power: An intro
The concept of Steemit is quite straight forward, you produce high quality content and get rewarded for doing so, you are also rewarded for curating posts on the network. Yet there are three different tokens related to Steemit, Steem, Steem dollars and Steem power. What is the purpose/function of each token? That is what I aim to explain!
Steem
Steem is the base unit on the Steem block chain and is the token which can be traded on exchanges just like you trade Bitcoin or Ethereum. Both Steem dollars and Steem power derive their value from the price of Steem.
If you are into Steem purely for Steemit purposes there is no real reason to maintain Steem on your account as it would be much more useful as Steem dollars or Steem power.
Your Steem can be transferred to your savings account on Steemit to collect up to 10% APR, or used to “Power up” your account.
Steem dollars
Steem dollars (or SBD) are the tokens that are used to reward the authors and curators of posts on Steemit. 1 Steemit dollar is equivalent to 1 USD worth of Steem, this is a way of shielding Steemit users from the volatility that Steem (and other cryptocurrencies) suffers on the market. This also makes figuring out how much your Steem dollars are worth in fiat currency much easier. Steem dollars may also be purchased directly on Steemit.
Steem power
Steem power basically denotes how much power you have on Steemit. It dictates the weight of your vote (how much your vote is worth), in fact having no Steem power stops you from being able to upvote content.
You can increase your Steem power by curating posts or producing quality content posts. You may also increase your Steem power by converting your SBD (Steem dollars) into Steem power, a process known as “Powering up”. Powering up does not mean you lose your Steem dollars, you may “Power down” your Steem power at any time. However powering down your steam may take up to 104 weeks (2 years), this regulation is in place to stop the “Big boys” from simply cashing out and crashing the Steem economy.
I hope this post helped clear up any doubts you may have about the three tokens on Steemit, if you have any questions, just leave them down below! Feel free to follow, upvote and resteem! 😁
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Good post i like thank you for sharing.
Thanks for reading!
Thanks for this.
No problemo, thanks for checking out the post!