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RE: MY VERY FIRST TRIP TO SWITZERLAND - one of the most crypto and blockchain friendly place on the planet earth

in #steemleo5 years ago (edited)

I set out to read all the comments before commenting myself, but today I am limited in time and your post has generated many comments, so forgive me if my own comment mirrors another.

I think your comparison to stocks is useful to experienced investors with a grasp of how blockchains work.

However, I think it best to start at the beginning of what Steem is, and how it's functions stem from that, as that establishes a logical basis for understanding each.

First, there is a pool of Steem: the money supply. All Steem is owned by legal entities, or what is conceptually comparable to legal persons. Our wallets are actually held pseudonymously, but the individuals holding the keys can be considered the owners of the Steem.

The code inflates the pool of Steem at rates specified by devs, which creates a pool of new Steem that is not owned by anyone yet. This new Steem creates the Rewards Pool that is distributed as rewards to folks that create or curate content with upvotes. One publishes content on Steem apps such as Steemit, Dtube, and other platforms, and vested Steem holders upvote it which produces author rewards for the publisher account. Those that upvote content also receive curation rewards, and in this way the entire pool of inflation is distributed to the market.

In order to cast an upvote on Steem, one must have vested their Steem. Steem is fully liquid, as the market bears. However, vesting one's Steem, called powering up, changes it to Steem Power, abbreviated SP. You cannot sell your powered up Steem before powering it down, which requires 13 weeks to fully revert to liquid Steem. Depending on how much SP you have, or Steem you have powered up, the value of your upvote to creators is larger or smaller, and the curation rewards you receive for upvoting are also. How much reward your upvote provides depends on the percentage of extant Steem Power you possess. 100% of inflation, the Rewards Pool, is distributed daily by the upvotes of SP holders.

Delegations are simply enabling others to vote your SP as proxies, for which they receive the curation rewards. Delegations can be withdrawn at will by the delegator, but take one week to be fully restored to utility to the delegator. Delegates have increased SP to upvote content with, which increases their influence on content creation, and also increases their ability to generate curation rewards for upvoting content. Delegates do not own the delegation, and cannot transfer it, sell it, or otherwise dilute equity of the delegator in any way.

Experienced investors should understand the concept of vesting, which is simply sacrificing liquidity of an asset in exchange for certain benefits. While distributing inflation from a pool of new tokens as rewards via upvotes is novel, the generation of the pool via inflation should be trivially understood by investors.

There are other features that are necessary to a complete understanding of Steem, such as the variables affecting curation rewards, downvotes, payout, resource credits, SBD, votebots, and so forth, but the above is the basis which will provide a baseline of understanding the mechanism of Steem.

For an accurate and refined grasp of those latter aspects of Steem, there are old posts that witnesses and devs have undertaken to explain them in detail, which you should undertake to search out and understand completely before trying to explain them to investors seeking more than an executive summary. I'd recommend providing the executive summary and then taking questions, as necessary to explain downvotes, SBD, and the like.

Hope this was useful. Congrats on securing funding for @project.hope.

Thanks!

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Amazing comment @valued-customer.
Solid upvote (270k) on the way :) Thank you for your input.

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