How are Rewards Distributed Among Steem Users?

The Steem blockchain is a social media platform that allows users to earn cryptocurrencies through various activities, including posting content, commenting, and voting on others' content. The rewards distribution system is an essential aspect of the Steem ecosystem, designed to incentivize user engagement and quality content creation. In this blog post, we will discuss the main ways in which rewards are distributed among Steem users.

Steem Rewards Pool and Reward Shares

Initially, the Steem blockchain generates new tokens daily, which are then added to the rewards pool. This pool is divided among content creators, curators (voters), and witnesses based on their contributions to the platform.

Rewards are allocated using a concept called "reward shares." Each user's account has reward shares based on their Steem Power (SP) - the more SP a user holds, the higher their influence and share of the rewards pool are when they upvote content or participate in other activities.

Content Creation and Curation Rewards

Content creators earn rewards in the form of Steem-backed dollars (SBD) and Steem Power (SP) when their posts receive upvotes from other users. The total payout depends on various factors, such as the amount of SP held by the voters, the voting weight used, and the overall voting activity on the platform.

Curators, or those who upvote and engage with content, also earn rewards for their efforts. The curation rewards are distributed as Steem Power and are calculated based on the curator's voting power and the time they votedCreatetive to others. Early upvotes on content that becomes popular can yield higher curation rewards.

Witness Rewards

Witnesses are users who help maintain and secure the Steem blockchain by running a server, producing blocks, and ensuring smooth operations. They receive rewards in the form of Steem Power for their services. The top 20 witnesses, as well as several backup witnesses, receive a steady income based on the blocks they produce.

Conclusion

The Steem blockchain's reward distribution system incentivizes users to create quality content, engage with others, and contribute to the network's maintenance. By participating actively and holding more Steem Power, users can increase their potential rewards and grow within the ecosystem.