#steem

Why do we need STEEM POWER?

STEEM tokens are produced by the Steem blockchain 24 hours a day, 7 days a week. What happens to them next? I will explain it to you in a simple example.

_{Source: Pixabay link [CC0 License]}

About 60,000 STEEM tokens are created daily and this number will expected to drop over the next 17 years. The new tokens that are created are divided into three groups:

✅ 10% of STEEM tokens goes to witnesses for powering the blockchain network. This is their automatic payment for maintaining servers.

✅ 15% of new tokens are awarded to STEEM POWER owners at all times. So here is the first plus freezing of your STEEM tokens on the platform shares. Therefore, the balance of our SP units grows automatically all the time by a small percentage.

✅ 75% of the whole majority of newly created STEEM tokens goes to finance the reward pool, divided between authors and curators. Who decides to give them each day? Just STEEM POWER owners.

The Steem blockchain network is like a token factory. The owners of STEEM POWER decide about their distribution. The amount of SP owned determines the number of new tokens that someone can give away in the form of votes each day.

Imagine a factory that gives away something for free. The bigger the car you have, the more goods you can take out each day. STEEM POWER is the size of your car. So if you have little STEEM POWER, it's as if you were coming to the free goods on foot, while others would be loaded with full trucks. Of course, you can only take the goods for yourself, by voting only for your own posts, but then you lose the opportunity to earn a living as a curator (seeker of high quality content) and the community may not like that you can take a lot and you only think about yourself.

_{Source: Pixabay link [CC0 License]}

STEEM tokens are created from nowhere. Their value is determined on the global market. The factory will gradually reduce the number of tokens created for the next 17 years. Their possession in the form of STEEM POWER gives you the power to decide who get new created STEEM tokens. Although many still sell tokens received, the STEEM price should increase at the current stage of the platform. The number of active users on Steem is still nothing compared to the global market, where millions of people can trade in tokens from around the world. Let's collect STEEM POWER so that our power in the Steem blockchain will grow.

Thank you for reading!

Comments · 27

@india1967(33)· 2658d
Thanks for this information
@celestialme(46)· 2660d
that's exactly what i was looking for :) thanks
@frenchbread11(37)· 2660d
I was lost and now with your post have a much greater understanding. Thank you!
@steemitsados(44)· 2660d
Excellent explanation, greetings and can see my first post presentation, that would help me a lot.
@rheuxe(31)· 2661d
Excelent explanation for those all of us, like me, who are just starting at this wonderful world of steemit; thanks a lot
@jackfitton(46)· 2661d
@astromaniak this is a very clear post and hasd helped me understand the inner workings of the blockchain. the only thing i would say is that tokens are n ot generated from nowwhere. witnesses produce the price and are rewarded in SP as far as i understand. but great post, followed!
@arcange(79)· 2661d
Congratulations @astromaniak! Your post was mentioned in the Steem Hit Parade in the following category:
- Pending payout - Ranked 5 with $ 121,55
@aliendev(37)· 2661d
Awesome breakdown! You set out to achieve, and achieve you did. I’ll be bookmarking this to answer future questions. :) thank you!
@fiberfrau(66)· 2661d
Thanks for the brief and clear explanation without mysterious tech-talk!
@ayjoe(57)· 2661d
tq to let me know this one

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@plantbased77(40)· 2661d
So if I delegate my SP does this mean the newly generated tokens go to the one who I delegate my SP to?

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@guruvaj(67)· 2661d
Steem from the community perspective is the best dPoS blockchain!💪

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@cloudspyder(60)· 2661d
I am collecting all the steem power and convert steem and sbd into steem power too.
@oadissin(77)· 2661d
Steem power is the fuel of our steem account engine. Thank you for sharing this information.

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@alpharch(41)· 2661d
How could we collect SP aside from investing?

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@brandoni30(30)· 2661d
I wish I would of seen this a year ago my account is worth 67 cents I think I am not getting the concept lol Thanks for teaching me about steempower and if you like crypto buy bitcoin it's going to be big in 2021
@blaogao(58)· 2662d
But me I have a small SP but I thankfully for small gain

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@fuadsm(56)· 2662d
Great simple explanation but "The factory will gradually reduce the number of tokens created" is wrong. The INFLATION RATE is the one being reduced over time. The absolute amount of STEEM being created keeps increasing because total supply keeps increasing.

#sbi-skip
@green4ever(46)· 2662d
@astromaniak , you say that the number of steem tokens generated will gradually slow down over the next 17 years or so. The question is what will be the worth/use of steem tokens when they have slowed down to almost a halt. What will then attract new users to steem.... Can we assume that then the steem tokens will be worthless ?
@smarthamster72(58)· 2662d
soon...
@orangesharks(33)· 2662d
I like steem token! Soon I'll get a lot of people, and to raise them to the sharks. My target 1 000 000 SP. My Discord: https://discord.gg/7gbREDZ My Telegram: https://t.me/orangesharks
@lupecoin(47)· 2662d
I LIKE STEEM
@edgarare1(68)· 2662d
Tremendously amazing, thanks a lot for your info very clear ..!!

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@agromeror(59)· 2662d
The SP, allows you to grow and make others grow, particularly I often think about delegating my SP. However, when understanding how this ecosystem works, without a doubt it is better to keep it own and work it.
@michaeljn(68)· 2662d
That was seriously the simplest most effective way to explain the process and I now have a clearer picture because of it. I have also just recently decided to stop delegating my steem power and return it so I can get more involved and add to the community by genuine interaction.

Thank you for that input. Greatly appreciate it.
@jamesbrown(63)· 2662d
Good explanation of SP, @astromaniak. Very succinct.
@sharif421(45)· 2662d
In Malta, one of the most delicious fruits in Bangladesh, some of the young people in the country are benefiting very much as a business.

If this is the case, Bangladesh will be the only country in the field of production.

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