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RE: Steemit Corner #1 : Where does the money come from on Steemit?
Greetings prof., i'm delighted to read through this content today. The comment started on my post by SC02 and i have been making little research and waiting to see your post as well. If i understand this very well, you mean steemit makes it money from the different users who buy the already printed steem token. If so, does it mean it is the only means through which the platform makes it money. Please sir, i need a little clearification on this.
1- The STEEM crypto-currency is directly created by the Steem blockchain, how?
New Steem are generated every day, in a certain volume, according to a very specific algorithm called DPoS (Delegated Proof of Stake) with (20+1) witnesses responsible for creating, signing transactions and securing the network. More concretely, blocks are created approximately every three seconds (each block now contains 2,945 STEEM).
2- It increases in value by entering the cryptocurrency exchange market. This value is measured by its usefulness, its rarity and the confidence placed in it on the markets. Plus a product, service, etc. is useful, sought after and rare, the more its value increases.
3- - The money also comes from new people who buy Steem and who therefore inject money into the network in a way, by valuing the tokens already issued.
Thanks for the indepth explanation dear professor