FAQ Overview

Steemit Basics

What is Steemit.com?

Founded by @ned and @dan, Steemit is a blockchain-based social network that rewards users for posting and voting. The technology is advanced, but the proposition is simple: Blog, earn Steem.

Author: Administrator
Last update: 2016-09-01 02:49


Who are @ned and @dan?

Author: Administrator
Last update: 2016-09-01 02:51


What is the difference between Steem and Steemit?

Steem is the name of the entire blockchain-based & censorship-resistant system. Steem is also a name for the system’s value token (currency).

Steemit, Steemit.com and Steemit, Inc. are all names for a privately-owned company and a website which offers people a secure way to interact with Steem, the system. Steemit is simply an interface to view the blockchain content of Steem.

Author: Administrator
Last update: 2016-09-01 02:51


Can I earn money on Steemit? How?

By sharing your original and unique posts that people want to upvote and providing value to others and the community. You can also earn rewards by curating - upvoting content that later becomes popular (although Steem Power is necessary to make money this way). Additionally, you can earn money simply by holding Steem Dollars. Currently, it is 10% APR, but the APR can change.

Author: Administrator
Last update: 2016-09-01 02:52


​From where does the money come?

The currency of Steemit.com is Steem. The value of Steem comes from liquidity providers, investors, and traders on exchanges. The network continually creates new Steem, and some of the newly-created currency gets transferred to users who add value to Steemit.

Steemit is a decentralized, incentivized content and curation ecosystem based on token seignorage with set and specific rules. The "money" at its core is like game tokens, distributed to creators and curators as rewards for successfully playing the game. What makes the system robust, is that the tokens, traded on markets, have a real-time value. The markets allow Steem Tokens to demonstrate their subjective value. This way, when one has One Steem Token, that person can know what the value of their token is worth to other people. It's similar to how someone playing a video game could obtain a rare item by playing the game. If they have the scarce item, then they could potentially sell it on video game item markets. Think of Steem as a game system for content, where the rewards people earn are video game tokens that have real market value and are readily tradable for Bitcoin and USD.

Further background for understanding is that Steemit is a website much like Reddit. However, it is different in that it pulls its information from a blockchain and cryptocurrency database called Steem rather than a centralized, private database. In this way, Steemit is also analogous to other blockchain-based businesses such as Blockchain.info, which pulls its data from the Bitcoin network. Regarding its difference from Steemit, Steem is a cryptocurrency and the blockchain database that rewards posters and voters for bringing new information to the community. It is an independent entity from Steemit. The Steem networks' awards paid to bloggers and curators is mining seignorage, and it works the same way miners are paid to secure the Bitcoin network. Rewards paid to bloggers do not come from Steemit Inc nor investment in Steemit Inc. There has been more than $3 million dollars worth of Steem tokens paid by the Steem blockchain to these creators and curators. Steemit does not and will not ever compensate the contributors of the Steem network for curating and creating content. Steemit is not a middleman to any of the blockchain processes, and the technology remains completely open source and transparent for anyone to audit and verify (Many software engineers are currently leveraging the open-source code to build their applications on Steem. There are more than sixty so far.).
Claims that there is somehow a scam or that money is from coming from new investment in Steemit are categorically false. Rather, the natural inclination of the platform Steem is to continue building and improving an incredibly exciting social media network that is decentralizing the value of the web and genuinely betters the lives of thousands of people around the world.
https://steemit.com/steem/@steemrollin/steem-where-does-the-money-come-from

Author: Administrator
Last update: 2016-09-01 02:52


I don’t have the skills to create quality original content, why should I join?

Don’t sell yourself short; everyone is good at something. Okay, you don’t write well. That’s fine! Are you a good photographer? Start a blog displaying your photos. Do you know a lot about football? Start a fantasy football blog, giving your best predictions each week and become the expert people seek for advice on their team that week. Maybe you are interested in arts and crafts? Display the work you’ve recently done. Video game connoisseur? Write reviews and tips for your favorite games. Can you make food look beautiful? Start a food blog!

If you honestly cannot think of anything you are good at or interested it, keep it in mind. Something will come to you. Until then, read the posts on Steemit and enjoy the great, fresh content! Even if you don’t like to read content, you will probably benefit from having a Steem wallet because it gives you a fast, cheap and easy way to transfer money around the world without restrictions.

Furthermore, Steemit gives you access to the earliest stage of this new exciting web technology and allows you to participate by doing things you may have already been doing! For example, posting and voting on content around the internet. Steemit is more than blog to earn. It’s social networking. Come and enjoy your time on the internet, let your voice be heard and join others curating a great place for content and networking.

Author: Administrator
Last update: 2016-09-01 02:53


Why is the money there in the first place?

The money is there primarily because of high user growth. The 'Steemit' network effect is beginning to take hold, and speculators can see it growing further.

The key for Steemit’s success is arguably to reach a critical mass of active users, allowing it to take advantage of the network effect. Once that happens, everything else will likely become a self-fulfilling prophecy. The Steem Dollar becomes a relatively stable currency supported from multiple sources of demand and supplied by the Steemit printing press.
https://steemit.com/steemit/@wingz/instead-of-asking-where-the-money-comes-from-ask-why-it-s-even-there-in-the-first-place-digging-deeper-into-the-steem-economic

Author: Administrator
Last update: 2016-09-01 03:58


Is Steemit a scam?

A scam usually starts with you having to give money to someone else. Steemit gives you money just for signing up and doesn't require you to invest anything if you don’t want to; most users don’t. Steemit does require effort, however. Write and share your unique and original content, if the community upvotes it enough, you get paid. How is that a scam?

Author: Administrator
Last update: 2016-09-01 03:58


How does Steemit, Inc. make money?

Social media companies can have tremendous market values without actually making any money because investors are forward-looking. Facebook, Instagram, Tinder and Snapchat, what did they all have in common? At one time, they were all losing massive amounts of money each year, while being valued in the billions of dollars. Why? Because they had a vast user base and investors know there are many ways to monetize a company with a large active user base.

Author: Administrator
Last update: 2016-09-01 03:59


Wait, there are multiple currencies in Steemit? What is STEEM, Steem Power, and Steem Dollars?

All three currencies in Steem fall under the umbrella of Steem Tokens. All three types of Steem Tokens perform a vital role in the Steem ecosystem. They are:

STEEM - The most liquid form of currency in the platform. It should only be held for short-term trading because you will be diluted 50% per year due to ever-increasing supply. You may convert STEEM into Steem Power, Steem Dollars, or another currency altogether.

Steem Power - Having Steem Power is similar to owning shares in a company. It is a measurement of how much influence you have on the platform and determines how much your vote is worth. It is important to note, when you decide to cash out your Steem Power (Power Down), you will get paid equal payments of STEEM for the next 104 weeks, taking two years to cash out your Steem Power completely.

Steem Dollars - A smart contract promising you will get about $1 USD worth of Steem at the current market price. One Steem Dollar is always worth around One US Dollar, although it can vary a little. Steem Dollars must be turned into STEEM before they can be “Powered Up” into Steem Power. You may also convert Steem Dollars to another currency outside the Steem economy.
https://steemit.com/steemit/@shredlord/steem-steem-dollars-and-steam-power-explained
https://steemit.com/steemit/@donkeypong/still-confused-by-steem-steem-dollars-and-steem-power-the-power-plant-analogy

Author: Administrator
Last update: 2016-09-01 04:00


If Steem consistently creates new currency, how much am I being diluted by holding STEEM, Steem Power, and Steem Dollars?

STEEM - When the curve stabilizes, it will be a 50% dilution on Steem. On an annual basis, there will be 100% increase of Steem in existence. The numbers are higher now because Steem is still in distribution mode.

Steem Power - Steem Power you hold increases at 90% per year, versus the 100% increase in Steem supply, so the dilution of Steem Power is the difference between these two. If you hold Steem Dollars and get zero curation awards, you will be diluted by 10% per year. Once again, the numbers are different now while Steem is in distribution mode.

Steem Dollars - No dilution, rather they gain 10% interest per year. This interest rate could change.
https://steemit.com/steemit/@hisnameisolllie/steem-dilution-rate-explained-currently-much-higher-than-you-might-think

Author: Administrator
Last update: 2016-09-01 04:01


Why won’t Steem Dollars become inflated?

Author: Administrator
Last update: 2016-09-01 04:01


What does the little number next to my name mean?

The number is your reputation score. It’s a way of measuring how much value you have brought to Steemit.

It uses a log10 scale, meaning:
A score of 30 is 10x better than a score of 20
40 is 10x better than 30
50 is 10x better than 40, and so on

Author: Administrator
Last update: 2016-09-01 04:02


What is Powering Up and Powering Down?

Powering Up - If you wish to gain more influence in the network, you need it increase your Steem Power. Powering Up is the process of turning your Steem into Steem Power.

Powering Down - If you have Steem Power, and wish to cash out, you can begin to Power Down. While powering down, the network has calculated your Vests, which are a stable measure of STEEM supply. The system will transfer 1/104 of your Steem Power, computed as Vests, to STEEM each week. One can continue to curate and earn curation rewards while powering down.

Author: Administrator
Last update: 2016-09-01 04:02


I just signed up, are there any steps I should take before I get started?

Yes! First and foremost, your account is worth money, so you should secure it.
https://steemit.com/steemit-guides/@pfunk/your-steem-account-is-worth-money-how-to-secure-it-with-a-new-owner-key-to-keep-it-yours-forever

https://steemit.com/steemit-guides/@pfunk/a-user-s-guide-to-the-different-steem-keys-or-passwords

Secondly, we urge you to read the rest of the FAQ, so you know the ins and outs of Steemit. It may seem like a daunting task, but we promise you will come out the other end a much more knowledgeable Steemian. Knowledge is power, and with your new superpowers, you are significantly more likely to achieve a high level of success.

Author: Administrator
Last update: 2016-09-01 04:03


Account Management

How do I improve my reputation score? What hurts my score?

To put it simply, add value to the Steemit community to improve your score. But harm the community and your score will suffer.

Author: Administrator
Last update: 2016-09-01 03:19