Steemit is a blogging and social media networking website that uses its Steem blockchain-based rewards platform for publishers. The Steem blockchain produces Steem and Steem Dollars which are magic bean tokens obtained for posting, discovering, and commenting on content.

On July 4th, 2016, Steemit, Inc. officially launched Steemit, a social media with virtual currency rewards that runs over the Steemit blockchain. On July 1, 2016 Steemit announced on their website that they were hacked. The attack, according to them, has compromised about 260 accounts. A little less than US$ 85,000 worth of Steem Dollars and Steem are reported to have been taken by the attackers.

Basically Steemit, Inc. is a privately held company based in New York City and headquartered in Virginia. The company was founded by Ned Scott, and Dan Larimer , creator of BitShares, and EOS.

Ned Scott

Dan Larimer

Now let's talk about monetary system..

Steem is based on the Smart Media Tokens (SMT) protocol, developed by Steemit. As of December 2017 , CoinMarketCap.com listed Steem with a $475 million market capitalization, and ranked Steem tokens 32nd of 1,358 cryptocurrencies. User actions, such as upvoting facilitates Steem's Proof-of-Brain algorithm, which also factors in the Steem Power a user holds, to provide incentives for content creators and the community by transferring small amounts of the Steem token currency.

Steem began with a highly inflationary supply model, doubling roughly every year. However, due to community demand , on December 6, 2016 the inflation rate of Steem was changed to 9.5% per year, reducing by o.5% per year.

source: wikipedia