SteemitGuide: What Exactly is VESTED STEEM ? Why is it important for you know how Smart Contracts allocate power within Steemit's Community and how ''Social Mining'' mints STEEM as a Cryptocurrency

in steemitguide •  2 years ago

Many of you must have come across the term ''Vested STEEM'' and it seems like many don't actually know what it stands for. The best way to describe it to you is that it's basically Steem Power!

Steem power is essentially STEEM converted to VESTs. Your Vested STEEM can be converted back into STEEM
VESTED STEEM (also called Steem Power) can only be withdrawn over a period of 3 Months, this can be changed in the foreseeable future through Updates


STEEM POWER is VESTED STEEM, locked up in smart contract which grants you more voting power. The more STEEM POWER you have the greater the Reward for Curating , Posting & Commenting , your vote carries more value meaning that you'll be rewarding user more when you upvote them and yourself when you contribute


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You can exchange your STEEM or Bitcoin to be converted to Steem Power, which can be converted back to STEEM, however doing so it will decrease the number of VESTS. VESTS represent a claim to redeem STEEM from the vested pool upon powering down

So How Exactly is STEEM minted as a Cryptocurrency?

Some call it "Social Mining". By either submitting valuable content , voting for valuable content, Contributing to discussions or answering questions, you'll earn STEEM as a reward, there are no barriers to entry or restriction so any individual can earn themselves in through social contribution. The account is free to setup and costs nothing to post/vote/comment however value is found through content established within Steemit Community

New STEEM tokens are created every 3 seconds when a new block is created on it’s blockchain, distributed to pay for our blogging rewards and also the miners & Witnesses who validate to secure the STEEM blockchain.
More Interested in what a Steem Witness is? You should be, they hold great responsibility over the Steemit.
Read this post What exactly is a STEEM Witness

Some Basic Maths Behind STEEM/VEST'S Ratio
The ratio at which you can do so is called "steem_per_mvest" which you can find on steemd
It's calculated by taking total_vesting_fund_steem / (total_vesting_shares / 1,000,000).

What Exactly is Steemit?

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Steemit is a social media platform where everyone gets paid for creating and curating content, it is build on top of STEEM's and is the user-friendly method of interacting with the Blockchain. Since It leverages a robust digital points system, called STEEM, that supports real value for digital rewards through market price discovery and liquidity.

What does Vested STEEM have to with Steemit?

Steem power is essentially STEEM converted to VESTs. Your VESTED STEEM can be converted back into STEEM within a 3 Month Period. STEEM is the cryptocurrency, while STEEM POWER is STEEM that's been set aside for the purposes of the community. Powering up STEEM moves it to be used for the community, and powering down STEEM POWER moves it out of the community to just Cryptocurrency Form. In order for you sell VESTED STEEM for STEEM, Steem Power it has to be converted to STEEM which decreases the number of VESTS

If you notice that you seem to get more Steem power over time, it's because the conversion rate changes over time which is why an account balance appears to be growing. It's showing you how much STEEM your VESTs are worth. The change in number that you see is a reflection of the change in the conversion rate between VESTs and STEEM.
In order to sell, Steem Power it has to be converted to STEEM which decreases the number of VESTS

The STEEM POWER in your wallet is called VESTs behind the scenes. That number doesn't change unless you receive rewards from posting, commenting, voting, or powering up/down.

STEEM applies the exact same idea through subjective Proof of Work: Instead of allocating stake to miners, STEEM allocates stake to those who post captivating content, as measured by upvotes.

Check out this site www.steemdollar.com

If you wanna check how much your Vested Steem is worth! Remember the Measurement for Vested Steem is different!

There is an easy way to find out how much Vested Steem you have! All you have to do is visit www.steemd.com/@steemitguide (You can replace my username with your Steemit Account)

I seem to have 2.38 M worth of Vested Steem ! It would be worth about 1,057.926 STEEM based on 17th November 2016!

Now if you wanna check how much 1 MV is worth in Steem with a price reading of current USD Value

Many don't seem to understand the idea behind Steem Power, don't blame yourself because it doesn't really exist like real money in the world. The amount of VESTs that are represented by the Steem Power figure stays constant aside from increases due to participation and interaction within the community.

This is the reason why it takes more STEEM over time for there to be Vested. It's not interest, it's dilution prevention

Compare this with 5 months ago! 😎

This means A VEST is a small fraction of a STEEM
1 MV = 1M ( M stands for a Million) VESTS = 448.195 STEEM = $47.834
see https://steemd.com/distribution

That's around an estimated 250+ STEEM increase for VESTED STEEM within a 5 month period. Maybe the right time to Power Up 😉

Vested STEEM Explained

The value of steem power is measured in VESTS. Everyday the amount of STEEM it cost to get 1MV of steem power goes up, this increases the amount of money it costs to go higher in the vested rankings. Waiting for the price of steem to go down even more before upgrading steem power might not be a good idea if the rate of how much STEEM it costs for 1MV keeps rising. The rate of STEEM for 1MV is another reason why the value of my steemit account is now going up even tho the price of STEEM is going down.

Check Out the Difference by comparing How we Mint and Distribute our beloved Cryptocurrency!

Fiat Currency

Traditional Money Minting; so called Fiat Currency is physical Money


Bitcoin

Bitcoin Minting; Using Computing power to solve complex algorithm to secure the Network. Miners receive Minted Bitcoin through the Block Reward


STEEM

Steemit is a unique social platform which mints STEEM and distributes it within the community. Once you convert the STEEM to STEEM POWER, the cryptocurrency is locked up in smart contract which gives you voting power, depending on the stake you have and you assert certain influence especially when it comes to allocation of newly minted STEEM tokens!


by @cass

The reward mechanism is considered a form of 'mining', and as with other crytpocurrency mining, it creates new coins to incentivize the useful work performed by participants who post, comment, and vote.

There is also computational mining in Steem as with Bitcoin, etc. along with rewards paid to elected witnesses. VESTED STEEM or STEEM POWER have a unique measurement. STEEM that is locked up in a smart contract which grants you certain a stake in Steemit, a social network build to distribute STEEM's Wealth

Check Out more Interesting Steemit Post

How to Calculate the Market Capitalization of Steem

SteemitGuide: The Principle of Steem Power compounding Growth

Vest in the Nonstope Bullet Train powered by Steem

Morelibertynow.com

Tutorial on how to use Unicode Characters on Steemit; Includes Cheatsheet on Smileys icons and Symbols

HowTo Make Use of a Steemit Feature that allow's you to display content floating left & right and learn how to paragraph

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Doesn't this go well with the SteemVerify Logo? Anyways, if you spot an error in any of my Guides please feel free to correct me and also if there is anything you would like to see a Guide on, let me know! Dedicated young Steemian interested in getting Vested. Follow me for more!

Also i support @steemboost a dedicated Steemit Project which aims to get people to Power Up.
I personally invested money into Steemit and earned it all back with extra's!
After doing this Article i realised that it's the best time to Power up! I will contiune to make Post and Power 100 STEEM each time!

Check out Steemboost.com and sign up using my Refferal Link

Steemit has been good to me 😍

https://steemit.com/steem/@steemboost/5-things-you-probably-don-t-know-about-steemboost-com

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
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Steem_Land Steemland.com tweeted @ 20 Nov 2016 - 16:18 UTC

SteemitGuide: What Exactly is VESTED STEEM ?

steemit.com/steemitguide/@… / https://t.co/CDZWbloHeY

@SteemUps @SteemitPosts @steemit @steemiobot

Disclaimer: I am just a bot trying to be helpful.
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Thank you so much 😍 appreciate this!

This helped me better understand what powering up means. I still don't get all the mecahnics behind the steem economic model, but I have a hunch I have to follow you and start reading your articles. Thanks, it was eye opening.

This is a great blog and thanks for sharing. Upvoted and shared on Twitter✔ for my followers to read and understand a little more about the mechanics of STEEMIT. Now following and looking forward to reading more of your blogs. Cheers. Stephen
https://twitter.com/StephenPKendal/status/800383062009925632

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StephenPKendal Stephen P Kendal tweeted @ 20 Nov 2016 - 16:59 UTC

What Exactly is VESTED STEEM? Why is it important for you to know how Smart Contracts allocate power within @Steemit

steemit.com/steemitguide/@… / https://t.co/6l1ABNHB2d

Disclaimer: I am just a bot trying to be helpful.
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You are very welcome. Stephen

Great work here @steemitguide!
I'm going to bookmark it and share it with the new people I happen to bump into. :)

Thank you for this excellent information. I'm relatively new and am still learning about all this. I have upvoted, and resteemed it in the event I need to refer back to it!

Upvoted followed and resteemed!!!!

Great article for newbies like me thanks 🙏🏻 For sharing

Wow You Hit Hard with this. . .if Any1 needs to know Steemit please do not be afraid of Reading anymore. . you are on steemit not fraggedbook .. so it's all good. .time 2 learn and become better Humans..let's not waste the invention of the internet LOL

@steemitguide much success to you and your Purpose <3


Thank you for your request to include this post in the STEEM BOOSTER list! The post is approved because you powered up minimum 100 STEEM in the last 24 h and you are not currently powering down!

Read more about our rules here .

Thank you also for your support!

Great post. Followup question: How many Steem in a block (block every 3 sec)?

This post has been ranked within the top 50 most undervalued posts in the second half of Nov 20. We estimate that this post is undervalued by $7.08 as compared to a scenario in which every voter had an equal say.

See the full rankings and details in The Daily Tribune: Nov 20 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.

If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.

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Happy with Rewards Already 😉 already have back more than my original 100 Invested Steem Power! Must be because of your post! Thank you so much!

Upvoted and Follow. This is a great post. Thank you for the very clear explanation.

This is just one of the best posts on these types of things, there is not much else to say, other than thanks a lot for this, great job, and I have UV and RS this!

Great job!!!

wow, learned a lot from this post. worth the read. thanks for sharing! VESTS! a totally new version of the usual VEST in my head to think about now :)

Actually Vandelay Industries is working the creation of a Steem Money Machine as we speak! Thanks for teaching me something too.

It's slowly getting clearer;D~ Thanks

Does SP have a 90% APR interest gain per year that is at the time of the powering down process when SP is converted into Steem during a series of weeks and weeks of payments into Steem?

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?