I get the question: 'Where does the money come?' all the time. But I believe it's the wrong question.
A better question is: Why does a Steem token represent value? It's easier to answer.
From all the effort that users are putting into the Steem blockchain new Steem tokens are created. These tokens are then given to the users that add the most value to the steem blockchain, according to the community.
So the work is being done first and from that new STEEM tokens are created. Therefore the work of everyone that works on the Steem blockchain is already inside these STEEM tokens when they are 'born'.
The confusion starts because most compare cryptocurrencies with fiat currencies. But fiat currencies are created with no effort being done first. The are created literally out of thin air, yet they represent value in the real world. You can buy groceries with them for instance.
It's really strange when you start thinking about it in this way.
Steem value comes from:
An STEEM token has inside of it the effort, time and energy already put in by the STEEM blockchain users, therefore it has value.
I explain it more clearly in my vlog. It's a little over 5 minutes.
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