How Are The Users Paid On Steemit?

The way Steem comes up with these tokens to reward users is simply by creating them. Unlike bitcoin, the tokens are already pre minded, and each year they inflate the supply to have more tokens to distribute.

Everyday Steem rewards 90% of the new Steem units to the people who hold Steem Power Units and 10% of the new Steem units are paid to content creators, curators, and commenters.

The payout reward for each post is as follows:

At least 75% of the amount goes to the author.
At most 25% is distributed among the curators.
The contributor’s job is to write content that they think will add value.

The curator’s job is to then vote on the content based on how good they think it is. To try to keep it somewhat of a meritocracy, Steemit has some clever ways of incentivizing curators to vote only on quality content.

According to Coindesk,

To incentivize this sort of voting, there is also the curation reward paid out in the form of Steem Power. If a post does well, you earn more Steem Power than if a post doesn’t do well, thus incentivizing you to only vote for content that you believe is high quality.

Not every vote from the same account is equal in value. Voting on multiple pieces of content reduces the strength of each of your votes depending on how much time passes between each vote.

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Contributions are paid out half in Steem Dollars and half in Steem Power, with the option to boost that up to 100% Steem Power.

Curators are paid out only in Steem Power.