Steem

What is Steem?

STEAM is the native coin of the Steem network, which is a blockchain focused on stimulating the community. The Steem blockchain allows developers create various decentralized applications (dApps) and for content creators monetize your content and develop their communities.

For more details on the STEEM price, check out the chart above.

The consensus mechanism used by Steem is Delegated proof of stake. Essentially, users must select validator nodes, which are called witnesses. They will have to protect the network and create new blocks. On Steem, witnesses generate blocks every 3 minutes.

Immediately after the release of the original Steem block in 2016, the first application of the Steem network was developed, called Steam. Essentially, it is a social network based on blockchain. Thus, it allows users create and curate online content but for this they receive a reward in cryptocurrency. The amount of rewards they receive depends on the number of upvotes their content receives. Additionally, users can also vote down content if they don’t like it.

Steemit was developed by Ned Scott and Dan Larimer. Prior to developing Steemit, Scott worked for a US food importing company as a business operator and financial analyst. Larimer, on the other hand, is a software engineer and entrepreneur who has been involved in the cryptocurrency world for quite some time.

Later, other decentralized applications were developed on Steem, including DTube (decentralized video platform), Utopian (an application for funding open source projects) and much more.

Purpose of STEEM coins

STEAM is base token Steem network. It can be exchanged for Steem Dollars or converted into STEEM Power. Steam Dollars are stablecoins pegged to the US dollar at a 1:1 rate. STIM Power, on the other hand, acts as a measure of a user’s level of influence within the Steem network. The number of STEEM Power tokens affects the amount of rewards the content creator receives.

Talking about the use cases of STEEM, it is mainly used for reward content creators and curators on the Steem network. However, it can then be exchanged on various markets for other tokens. Just like Steem Dollars, which can also be traded on exchanges. However, STEEM Power tokens cannot be sold directly, they can only be converted (switched off) back into STEEM tokens.

STEEM Tokenomics

STEEM coins inflationary, which means there is no maximum set of supplies. Tokens are issued as block rewards for Witnesses. Since Witnesses create new blocks every 3 minutes, STEEM tokens are released daily. However, only 10% of block rewards go to Witnesses. 75% is used to reward content creators, and the remaining 15% goes to STEEM Power holders.

Inflation rate for STEEM tokens was fixed at 9.5% per annum (starting from December 2016). However, every 250,000 blocks the rate should drop by 0.01%. At this rate, inflation will continue to decline until it reaches 0.95%, which is estimated to take about 20 and a half years.

STEEM price is subject to change.so keep this in mind if you are thinking about purchasing STEEM tokens.

The main reason for this is the volatility of the entire crypto market. This has an impact on most cryptocurrencies, including the price of STEEM. Thus, if you are interested in purchasing a token, be sure to follow it up first.

There are many tools to help you with this. For example, our price chart (which you can find above) will allow you to dig deeper into STEEM price history and other important project details.