Why do we need STEEM POWER?
STEEM tokens are produced by the Steem blockchain 24 hours a day, 7 days a week. What happens to them next? I will explain it to you in a simple example.
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About 60,000 STEEM tokens are created daily and this number will expected to drop over the next 17 years. The new tokens that are created are divided into three groups:
✅ 10% of STEEM tokens goes to witnesses for powering the blockchain network. This is their automatic payment for maintaining servers.
✅ 15% of new tokens are awarded to STEEM POWER owners at all times. So here is the first plus freezing of your STEEM tokens on the platform shares. Therefore, the balance of our SP units grows automatically all the time by a small percentage.
✅ 75% of the whole majority of newly created STEEM tokens goes to finance the reward pool, divided between authors and curators. Who decides to give them each day? Just STEEM POWER owners.
The Steem blockchain network is like a token factory. The owners of STEEM POWER decide about their distribution. The amount of SP owned determines the number of new tokens that someone can give away in the form of votes each day.
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Tremendously amazing, thanks a lot for your info very clear ..!!
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That was seriously the simplest most effective way to explain the process and I now have a clearer picture because of it. I have also just recently decided to stop delegating my steem power and return it so I can get more involved and add to the community by genuine interaction.
Thank you for that input. Greatly appreciate it.
Thank you for your comment. I'm happy to help someone better understand Steem.
So if I delegate my SP does this mean the newly generated tokens go to the one who I delegate my SP to?
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No. The delegation allows others to vote with your power. They receive curatorial rewards from this power. However, new tokens for having SP all the time go to you.
Thanks for explaining. I’m learning something new everyday 😊🙏
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The SP, allows you to grow and make others grow, particularly I often think about delegating my SP. However, when understanding how this ecosystem works, without a doubt it is better to keep it own and work it.
I am collecting all the steem power and convert steem and sbd into steem power too.
Steem from the community perspective is the best dPoS blockchain!💪
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@astromaniak this is a very clear post and hasd helped me understand the inner workings of the blockchain. the only thing i would say is that tokens are n ot generated from nowwhere. witnesses produce the price and are rewarded in SP as far as i understand. but great post, followed!
Good explanation of SP, @astromaniak. Very succinct.
that's exactly what i was looking for :) thanks