The STEEM White Paper


 

https://steem.io/SteemWhitePaper.pdf
 

The  Steem network starts with a currency supply of 0 and allocates STEEM  via proof of work at a rate of approximately 40 STEEM per minute to  miners, with an additional 40 STEEM per minute being created to seed the  content and curation reward pools (for a total of 80 STEEM per minute).  Then the network starts rewarding users who convert to SP. At this  point, STEEM grows at a rate of approximately 800 STEEM per minute
Steemit  weighs payouts proportional to n2 the amount of STEEM Power Voting for a  post. In other words, post X would receive a payout proportional to:
 Votes[x]2 / sum(Votes[0…n]2)
Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater  
Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round)
POW  inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded  as 1 STEEM per round) or 0.750% per year, whichever is greater.  
Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater

 

STEEM is liquid, no interest gained. Only gains value as the price goes up. You can also earn STEEM just by trading STEEM.
Liquidity Points = Net Bid Volume X Net Ask Volume
You  earn Liquidity points by having Buy and Sell orders open on the  exchange, and the user with the most Liquidity Points is awarded 1200  STEEM every hour. But when someone wins an hour, they are reset back to  0. An account that does not win an award is reset to 0 after 1 week.
 

STEEM  Power (SP), is a 2 year investment. After it is deposited it can be  withdrawn in 104 equal pieces over 104 weeks. Meaning that STEEM Power  Holders have a long term stake in Steemit and STEEM’s success. For every  1 STEEM used to fund contribution incentives, 9 STEEM are given to  STEEM Power Holders as interest. And this number could grow. STEEM  Miners are paid in STEEM Power to discourage the creation of Mining  Pools, as a Mining Pool would have to pay out STEEM over the course of  many Years, rather than paying the Pools Miners whenever they want. This  also means that the people mining STEEM have a 2 year interest in  STEEM’s growth with any payment of STEEM Power they receive. This also  makes Mining a speculative venture, as you are not sure what the Price  will be in 2 years, so Mining is based on whether or not you think your  rewards in 2 years, over 104 weeks, will be worth the work now.
 

STEEM  Dollars (SMD) are Short Term Debt Instruments that you can choose to turn  into STEEM Power to invest in Steemit, or turn in to STEEM and sell for  Bitcoins. STEEM Dollars can not be bought with STEEM but STEEM can be  bought with STEEM Dollars, this one way movement allows the Blockchain  to decide who gets STEEM Dollars and when. Holding a STEEM Dollar  without converting it, because it is debt, is basically like  contributing a $1 USD to the community, knowing that you can use it when  you need it to get $1 of STEEM. When STEEM Dollars are held, they raise  the value of STEEM and STEEM Power. STEEM Dollars gain interest at a  rate of about 12%.
SMD rewards: A percentage of SMD value is created at an APR set by the witnesses and paid to SMD holders as SMD
Feed  Rate following: The amount of STEEM for which the total SMD in  existence can be redeemed will change based on changes in the price  feed. This change is effectively destruction ("burning") of STEEM when  the value of STEEM (as measured by the feed) is increasing, or creation  of STEEM when the value of STEEM (as measured by the feed) is declining.

 

The  reason the Value of STEEM, STEEM Dollars and STEEM Power is not the  same in your wallet as it is on the exchange is because the Steemit  wallet calculates the average price over the last 7 days and changes  every hour, this way the wallet is not constantly changing drastically  with the market, and will not be effected too much by something that  happens over a 24 hour period, and is corrected shortly after. Such as a  giant dump. All conversion requests are also delayed a week, which  takes away any advantage that the Trader or the Blockchain would have in  the conversion.
 

The Steem network is built upon Graphene, the  same technology that powers BitShares. Graphene has been publicly  demonstrated sustaining over 1000 transactions per second on a  distributed test network. Graphene can easily scale to 10,000 or more  transactions per second with relatively straightforward improvements to  server capacity and communication protocols. Steem is capable of  handling a larger userbase than Reddit. In 2015 Reddit’s 8.7 million  users generated an average of 23 comments per second , with an average  of 83 comments 13 per year per user. There were 73 million top-level  posts, for an average of 2 new posts per second. There were about 7  billion up votes creating an average voting rate of 220 votes per  second. All told, if Reddit were operating on a blockchain it would  require an average of 250 transactions per second.
 

Cryptocurrency and Taxes
/@marsresident/you-do-not-have-to-pay-taxes-on-cryptocurrencies-until-you-sell-them
 

Voting and Witnesses on Steemit
/@marsresident/vote-for-steem
 

Economics 101
/@marsresident/474mst-economics-101
 

How You Can Help Get STEEM in the News Using Just Your Email
/@marsresident/how-you-can-help-get-steem-in-the-news-simply-using-your-email
 

How DogeCoin Overtook Other Currencies
/@marsresident/how-dogecoin-overtook-other-cryptocurrencies
 

STEEM’s USD Value will Climb Throughout the Year
/@marsresident/steem-s-usd-value-will-climb-throughout-the-year
 

How STEEM Can Become the #1 CryptoCurrency
/@marsresident/how-steem-can-become-the-1-cryptocurrency
 

Github Archive for For STEEM App Developers
/@marsresident/github-cryptocurrency-app-creation-archive
 

Steemit's First $30,000 Post
/@marsresident/steemit-s-first-usd30-000-post

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