Three Currencies in Steemit ( STEEM, STEEM POWER , SBD )

in steemit •  2 years ago

Unless you decide three different currency you steemit event anymore, you should know these how Steem’s three cryptocurrencies work: STEEM, Steem Power and Steam Dollars (SBD).

  1. STEEM
    STEEM is the fundamental currency of the system. It’s volatile, subject to inflationary losses (its supply increases 100% per year) but you can easily to exchangeable for Bitcoin (BTC ) and other others any currencies at BlockTrades, Bittrex and OpenLedger.STEEM is ownership token but is only voteable when vested as the second currency this is call Steem Power in a process called powering up.STEEM can be converted into Steem Dollars (SBD).

2.Steem Power
Steem Power (SP) is STEEM that has been invested into the network as equity .This process is called powering up. It can be converted back to STEEM only once per week (waiting time is 7day).This Process is called powering down).This rate-limiting of SP withdrawals incentivizes you to develop a long-term perspective for your participation in the Steem network. It also protected against hackers.Your Steem is save.
The upvotes of users with a lot of SP are worth more than those of users with relatively little SP,When your SP is Zero,you can not vote at all posts.Ninety percent of new STEEM created is distributed on a constant basis pro-rata to holders of SP. This is a powerful incentive to convert your Steem Dollar earnings to STEEM and power them up to Steem Power — if you believe in the long-term viability of the Steem network.Thus, users with a long-term vision are rewarded more than those with a short-term .SP holdings are thus not subject to inflation, for the most part.

3.Steem Dollars
Steem Dollars ( SBD) are conceived of as short-term debt instruments that are pegged 1:1 with the US Dollar.By holding SBD you are “effectively lending the community the value of a dollar,” which enhances growth, according to the white paper. Check the current market price at SteemDollar.com.So SMD pays 10% annual interest when the value of 1 SMD is under $1 USD.
For every SBD created, $19 USD worth of STEEM is created as Steem Power, so the maximum debt-to-ownership ratio of the Steem network is about 5%. This could increase if the value of STEEM falls in the marketplace but should not be a major concern.

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Do you know how the progress, the new STEEM is created and distributed to reward pool, vesting fund and witness, is recorded in the blockchain?