1 STEEM = 0.0632 USD - How it's redirecting surplus value back to the content contributors?

puncakbukit (78)in #steem • 15 hours ago

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Steem disrupts the traditional attention economy by redirecting surplus value from centralized entities back to the content contributors. Launched in 2016, this decentralized social finance model allows users to monetize digital engagement through its native three-token system. Despite its utility, recent market movements have formed a Bearish Engulfing pattern, suggesting a temporary shift in investor sentiment toward the downside.

The network operates on a unique Proof-of-Brain consensus, where human cognition—rather than hardware-intensive mining—determines the distribution of network inflation. This system applies a subjective theory of value to reward information quality through community upvoting. However, the technical outlook remains cautious as the ADX-DI indicator sits in negative territory, signaling a lack of strong upward momentum in the current price trend.

Leveraging the Graphene framework and Delegated Proof of Stake (DPoS), Steem achieves near-instant, fee-free transactions that are essential for high-frequency social interactions. This technical efficiency is paired with a robust reward pool that allocates 75% of new token issuance to creators and curators. By prioritizing labor over capital, the ecosystem maintains a highly active, user-driven economy that removes the marginal cost of participation.

About Steem Blockchain (STEEM)

The Steem Blockchain represents a pioneering intersection of social media and decentralized finance, specifically engineered to monetize the "attention economy" through an intrinsic incentivization layer. Launched in 2016, it operates as a publicly accessible, distributed database that facilitates the creation and curation of content while rewarding participants with its native digital assets. Economically, Steem is designed to solve the problem of value extraction in traditional social media, where the platform owners capture 100% of the surplus value generated by user-generated content.

The "Proof-of-Brain" Economic Model

At the heart of Steem is a unique consensus concept known as Proof-of-Brain (PoB). Unlike Bitcoin’s Proof-of-Work, which rewards computational expenditure, or standard Proof-of-Stake, which rewards capital accumulation, PoB applies a Subjective Theory of Value. It uses the "wisdom of the crowd" to assess the quality of information. When users upvote content, they are essentially allocating a portion of the network's daily inflation to that creator. This creates a competitive market for quality where human cognition acts as the "miner."

A Trifurcated Currency System

To balance liquidity, stability, and long-term investment, Steem employs a sophisticated three-token ecosystem:

STEEM: The primary liquid currency. It can be traded on exchanges but is inherently inflationary, serving as the medium of exchange and the base for the other two assets.
Steem Power (SP): This represents a "vested" stake in the network. Converting STEEM to SP (Powering Up) grants users governance rights and increases the weight of their upvotes. It acts as an equity-like instrument that encourages long-term holding by distributing a portion of the annual inflation as interest.
Steem Dollars (SBD): A debt-like instrument designed to be pegged to the value of $1.00 USD. It provides content creators with a stable unit of account, shielding them from the high volatility typical of the broader cryptocurrency market.

Unique Competitive Advantages

From an operational standpoint, Steem utilizes the Graphene framework and a Delegated Proof of Stake (DPoS) consensus. This architecture allows for 3-second block times and, most significantly, zero transaction fees. By eliminating the marginal cost of transactions, Steem enables micro-interactions—such as "liking" or commenting—to be recorded on-chain without the friction of gas fees, which is a critical requirement for any consumer-facing social application.

Furthermore, the Reward Pool ensures that 75% of newly minted tokens are directed toward content creators and curators. This high rate of distribution to the "labor" (the users) rather than just the "capital" (the witnesses/block producers) fosters a highly active and engaged community ecosystem.

What do you think of STEEM price in the next one month? Upvote on the comments!

Disclaimer: This content is for educational purposes only, not professional advice, and you should do your own research and make financial decisions at your own risk.

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