This is another topic that is really confusing at first, but it’s not too bad once you take a closer look. Let’s dive right in. 🙂
Where’s The Money Come From?
This might sound weird at first, but when you upvote someone on Steemit, DTube, or any other Steem app, you’re not giving them any of your STEEM. Everything in your wallet stays in your possession, so where does the STEEM come from?
Every day, new STEEM are created and distributed to three groups: 10% to witnesses, 15% to Steem Power holders, and the rest makes up the rewards pool. This rewards pool is what’s distributed to people who publish content. About 75% of it goes to the author of the post, and the rest goes to curators, which is a topic I’ll cover in a later video.
You’re probably wondering how Steem can just print money every day like this, but this actually reduces the overall value of the currency and can be seen in its rate of inflation. Starting at the end of 2016 it was 9.5%, and it decreases by about 0.5% each year. You can counteract some of this inflation by keeping your STEEM as Steem Power because it receives some of the new STEEM created each day as interest.
What Happens When You Upvote?
When you upvote a post or comment, you’re telling the blockchain to send some fraction of the rewards pool to the author. The more Steem Power you have, the more influence you have, and the more you can route to someone with your vote.
So not too bad right? 🙂 I hope this video was helpful and please let me know in the comments if you have any questions!
▶️ DTube
▶️ IPFS