Developed in 2016 by Dan Larimer and Ned Scott, Steemit is a recognized blogging and social networking platform built on blockchain. Dan Larimer is a big name in the Blockchain community that also founded Bitshares, the decentralized asset exchange, and EOS, the crypto asset whose ICO raised $ 4 billion.
Yes, that's a billion with a B!
Steemit has an interface similar to Reddit but with a dye of Medium. Like other famous social networks, it has a news source that incorporates trending publications, as well as the publications of the users you follow. Anyone can create an account for free and write a blog post with embedded images and videos as well,comment on others' posts. But that's where the similarities end.
The blockchain-based social media network resembles any other social network, but its business model has affected the industry. Steemit is based on the Steem blockchain that not only stores cryptoactive assets but also content. That is, all content published on Steemit is stored in the Steem blockchain and cannot be deleted by any central authority as in the case of Facebook. It is regulated / moderated by users to avoid plagiarism, illegal content and other unnecessary, unwanted and useless content.
The platform works with the Brain Test concept. There is a reward system where content creators and curators are paid in theory, should be based on the value they add to the platform. The platform uses the 3 different decentralized cryptocurrencies to reward both content creators and curators who can vote, vote in favor, comment and post posts.
Steem: your negotiable cryptocurrency (utility token) that you can buy and sell in exchanges. Steem can also be used on the Steemit platform and can be turned on in Steem Power, exchange for Steem Dollars and transfer it to other accounts.
The way Steem creates these tokens to reward users is simply by creating them. Unlike Bitcoin, tokens are already designed and each year they inflate the supply to have more tokens to distribute.
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Every day, Steem rewards 90% of new Steem units to people who own Steem power units and 10% of new Steem units are paid to content creators, curators and commentators.
The payment reward for each publication is as follows:
At least 75% of the amount goes to the author.
At most, 25% is distributed among curators.
The taxpayer's job is to write content that they think will add value.
The curator's job is to vote on the content based on how good they think it is. To try to keep it as a meritocracy, Steemit has some smart ways to encourage curators to vote only for quality content.
According to Coindesk,
To encourage this type of voting, there is also the healing reward paid in the form of Steem Power. If a publication works well, you gain more Steem Power than if a publication does not work well, which encourages you to vote only for content that you think is of high quality.
Not all votes in the same account have the same value. Voting on multiple pieces of content reduces the strength of each of your votes depending on how much time you spend between each vote.
Contributions are paid half in Steem Dollars and the other half in Steem Power, with the option of increasing up to 100% Steem Power.
Curators are paid only in Steem Power.
How does Steemit make money?
Steemit does not monetize its platform with ads. Rather, use the following ways to earn money.
Steemit earn money when its users invest in Steem power so that their publications can be seen by a wider audience thus obtaining more votes which translates into more money Steem Power is locked for two years, so, in theory, Steemit could use that money as an investment in the platform through which they can get a higher return than what they are returning with rewards.
In addition, as we mentioned in the blockchain business model, its negotiable Steem token can appreciate its value, which will bring a source of cash for the company.
The developers have also had a share of the tokens, which they can withdraw or reinvest in the business.
Steemit also allows its users to promote their publications to reach a wider audience. Steemit has its own integrated way of promoting each publication. This is no different than other decentralized platforms such as Minds, which also allows users to increase publications in this way. Think of it as a Facebook ad, you are essentially paying for people to see your content, waiting for it to become sales for your business, or in this case, positive votes and potential earnings for your post.
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The best way to think about publications on Steemit can be summarized in the following statement in this article,
“Steemit has no explicit ads, but you can imagine each post as a single ad. To attract attention or "sell the contents," one must invest their money. peoples like your post you will get your money back and even earn something. Other content creators will lose. "
Here is a great article that analyzes objectively if you can really make money blogging on the Steemit platform
The verdict of the article is:
If you can.
But it takes two things.
An initial investment: While creating an account and blogging is free, if you want your publications to have some kind of reach, you will need Steem Power. In that case, I would have to buy Steem and then "turn it on" in Steem Power.
Hard work and consistency: like any business, making money with Steemit requires persistence and a commitment of time. It is not as simple as registering and receiving a payment for making a minimal effort.
Also keep in mind that while payments are still very real, there are many obstacles that you must go through to exchange your Steem Dollars or Steem Power for US dollars.
And the way in which incentives are structured, it is convenient to keep your money on the platform, which creates a risk if you do not end up succeeding.
The platform has also received criticism, as there are a number of external service providers that use bots to automatically vote for publications to increase them and increase their revenue potential. This reward system has created a complete market of "whales" that take advantage of the system by buying large quantities of Steem Power and using the bots to promote their publications.
