The STEEM White Paper

marsresident (60)in #steemit • 8 years ago

The Steem network starts with a currency supply of 0 and allocates STEEM via proof of work at a rate of approximately 40 STEEM per minute to miners, with an additional 40 STEEM per minute being created to seed the content and curation reward pools (for a total of 80 STEEM per minute). Then the network starts rewarding users who convert to SP. At this point, STEEM grows at a rate of approximately 800 STEEM per minute
Steemit weighs payouts proportional to n2 the amount of STEEM Power Voting for a post. In other words, post X would receive a payout proportional to:
Votes[x]2 / sum(Votes[0…n]2)
Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round)
POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater.
Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater

STEEM is liquid, no interest gained. Only gains value as the price goes up. You can also earn STEEM just by trading STEEM.
Liquidity Points = Net Bid Volume X Net Ask Volume
You earn Liquidity points by having Buy and Sell orders open on the exchange, and the user with the most Liquidity Points is awarded 1200 STEEM every hour. But when someone wins an hour, they are reset back to 0. An account that does not win an award is reset to 0 after 1 week.

STEEM Power (SP), is a 2 year investment. After it is deposited it can be withdrawn in 104 equal pieces over 104 weeks. Meaning that STEEM Power Holders have a long term stake in Steemit and STEEM’s success. For every 1 STEEM used to fund contribution incentives, 9 STEEM are given to STEEM Power Holders as interest. And this number could grow. STEEM Miners are paid in STEEM Power to discourage the creation of Mining Pools, as a Mining Pool would have to pay out STEEM over the course of many Years, rather than paying the Pools Miners whenever they want. This also means that the people mining STEEM have a 2 year interest in STEEM’s growth with any payment of STEEM Power they receive. This also makes Mining a speculative venture, as you are not sure what the Price will be in 2 years, so Mining is based on whether or not you think your rewards in 2 years, over 104 weeks, will be worth the work now.

STEEM Dollars (SMD) are Short Term Debt Instruments that you can choose to turn into STEEM Power to invest in Steemit, or turn in to STEEM and sell for Bitcoins. STEEM Dollars can not be bought with STEEM but STEEM can be bought with STEEM Dollars, this one way movement allows the Blockchain to decide who gets STEEM Dollars and when. Holding a STEEM Dollar without converting it, because it is debt, is basically like contributing a $1 USD to the community, knowing that you can use it when you need it to get $1 of STEEM. When STEEM Dollars are held, they raise the value of STEEM and STEEM Power. STEEM Dollars gain interest at a rate of about 12%.
SMD rewards: A percentage of SMD value is created at an APR set by the witnesses and paid to SMD holders as SMD
Feed Rate following: The amount of STEEM for which the total SMD in existence can be redeemed will change based on changes in the price feed. This change is effectively destruction ("burning") of STEEM when the value of STEEM (as measured by the feed) is increasing, or creation of STEEM when the value of STEEM (as measured by the feed) is declining.

The reason the Value of STEEM, STEEM Dollars and STEEM Power is not the same in your wallet as it is on the exchange is because the Steemit wallet calculates the average price over the last 7 days and changes every hour, this way the wallet is not constantly changing drastically with the market, and will not be effected too much by something that happens over a 24 hour period, and is corrected shortly after. Such as a giant dump. All conversion requests are also delayed a week, which takes away any advantage that the Trader or the Blockchain would have in the conversion.

The Steem network is built upon Graphene, the same technology that powers BitShares. Graphene has been publicly demonstrated sustaining over 1000 transactions per second on a distributed test network. Graphene can easily scale to 10,000 or more transactions per second with relatively straightforward improvements to server capacity and communication protocols. Steem is capable of handling a larger userbase than Reddit. In 2015 Reddit’s 8.7 million users generated an average of 23 comments per second , with an average of 83 comments 13 per year per user. There were 73 million top-level posts, for an average of 2 new posts per second. There were about 7 billion up votes creating an average voting rate of 220 votes per second. All told, if Reddit were operating on a blockchain it would require an average of 250 transactions per second.

Cryptocurrency and Taxes
https://steemit.com/money/@marsresident/you-do-not-have-to-pay-taxes-on-cryptocurrencies-until-you-sell-them

Voting and Witnesses on Steemit
https://steemit.com/steem/@marsresident/vote-for-steem

Economics 101
https://steemit.com/money/@marsresident/474mst-economics-101

How You Can Help Get STEEM in the News Using Just Your Email
https://steemit.com/steem/@marsresident/how-you-can-help-get-steem-in-the-news-simply-using-your-email

How DogeCoin Overtook Other Currencies
https://steemit.com/steem/@marsresident/how-dogecoin-overtook-other-cryptocurrencies

STEEM’s USD Value will Climb Throughout the Year
https://steemit.com/steem/@marsresident/steem-s-usd-value-will-climb-throughout-the-year

How STEEM Can Become the #1 CryptoCurrency
https://steemit.com/steem/@marsresident/how-steem-can-become-the-1-cryptocurrency

Github Archive for For STEEM App Developers
https://steemit.com/steem/@marsresident/github-cryptocurrency-app-creation-archive

Steemit's First $30,000 Post
https://steemit.com/steemit/@marsresident/steemit-s-first-usd30-000-post