Blockchains like Steem and Bitcoin produce new tokens each time a block is produced. Unlike Bitcoin, where all of the new coins go to the block producers (called miners), the Steem blockchain allocates a majority of the new tokens to a reward fund. The reward fund gives users tokens for Steemians participating in the platform.
When you are paid on the website Steemit, you can choose to be paid 50% in STEEM Power and 50% in STEEM Dollars, or 100% in steem power. Here's an example of a 50/50 payout: If you earn $200 on a post, you will get $100 STEEM Dollars, and 50 STEEM Power (assuming STEEM Power is worth $2 each, at the current time).
STEEM is the base liquid currency token in the platform. STEEM can be powered up into STEEM Power, traded for Steem Dollars, and transferred to other accounts. It is a cryptocurrency token, similar to bitcoin. STEEM is the standard Cryptocurrency tradable on various exchanges. Its value can fluctuate just like any other coin.
Read more: STEEM
VESTS (Steem Power)
STEEM Power (abbreviated SP) is a measurement of how much influence a user has in the Steem network. The more STEEM Power a user holds, the more they can influence the value of posts and comments.
They are non-liquid, thus must be "powered down" before being able to trade them. Powering down Steem Power (VESTS) takes 3 months, and is paid out as 13 weekly payments. The power down rate will stay the same if you earn more STEEM Power while powering down, thus it's recommended to re-power down after earning a large amount of fresh STEEM Power.
STEEM Power gains interest over time, and usually gains interest faster than the power down rate, thus you will still be earning interest while powering down.
Read more: STEEM Power (SP)
SBD (Steem Dollars)
Steem Dollars may also be converted into STEEM in a process that takes 3.5 days. There are another quick option trading it in the Internal market. Steem Dollars can be used to buy things in marketplaces, such as Peerhub.
Read more: Steem Dollar (SBD)
- Where do the new STEEM tokens come from? Steemit FAQ, retrieved in 1/1/2018
- What is the difference between STEEM, STEEM Power, and Steem Dollars? Steemit FAQ, retrieved in 1/1/2018
- Steemit : https://steemit.com
- Steem.io : https://steem.io
- Steemithelp.net : Basic concepts in the Steemit ecosystem Retrieved in March, 8, 2017.
- @lukestokes : The Currency of Steemit Isn't Steem Power, STEEM, or SBD July 22nd, 2016
- @thecryptofiend : The Missing FAQ - A Beginners Guide To Using Steemit September 2016
- @donkeypong : Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy September 7th, 2016
- @charles.ponzi : Understanding the economic engine that Steem, Steem Dollars, and Steem Power is composed of in <12 min February 2017.
- @thecryptofiend : STEEM The Super Basic Explanation for NEW Users March 18th, 2017
- @transhuman : Steem Is Smartmoney... Let's Change The Narrative To How It Should Be March 2017.
- @steemitguide : Steemit Financial Instruments: Steem, Steem Power & Steem Dollar Explained May 20th, 2017.
- @sykochica : Answering common questions - Steem - Steem Power - Steem Dollars and what should I do with them May 2017
- @somethingsubtle : Steem, Steem Power and Dollars - A Metaphor July 1st, 2017.
- @digicrypt : Launching the First Steemit Crypto Investment Report! July 5th, 2017.
- @steemloverr : Three Currencies in Steemit ( STEEM, STEEM POWER, SBD) July 22nd, 2017.
- @penguinpablo : Charts: How much STEEM is being transferred from and to the exchanges? August 9th, 2017
- @cryptoctopus : Why STEEM is different and why I'm ALL-IN September 3th, 2017
- @heiditravels : Learning Crypto: What's the Difference Between Cryptocurrencies and Tokens? November 10th, 2017
- @dragosroua : There's Something VERY Strange Happening With STEEM and SBD In The South Korean Exchange Upbit! January 20, 2018
- How to transfer STEEM between Steem account to Exchanges
- Increase your Steem Net Worth
- Steem Exchanges
- Steem Wallets
- Mycryptopedia : What is STEEM? Written by unsigned, retrieved in 11/16/2017
- WalletInvestor : Steem Prediction, STEEM Forecast Price Charts - Is Steem a Good Investment? Written by unsigned, retrieved in 12/26/2017
- Hacked : Steem: Long-Term Potential Worth the Risk? Written by Alex Moskov, published in 11/26/2017
- Suppoman Udemy YouTube Channel : New Steemit? Is this the next big crypto? Video tutorial by Suppoman, published in 9/8/2017. 19.709 views in 9/11/2017
- Conpay Blog : Conpay terminals started to accept tokens of social network platforms steemit and golos.io Written by conpay, published in 8/31/2017
- Craig Grant : Dan Larimer talks about STEEM blockchain and Steemit Edition of the video interview with Dan Larimer hosted by Alex Sterk. Edited (only parts about Steemit) by Craig Grant (@craig-grant) and published in 5/18/2017
- Boxmining YouTube Channel : STEEM Explained: STEEM, STEEM Power and SBD Video tutorial by @boxmining, published in 5/8/2017
- Andrew Levine YouTube Channel : Steemit 101 - Steem, Steem Dollars, and Steem Power Video by Andrew Levine, published in 7/15/2016
- CoinDesk : Steemit Bridges Blockchain and Social Media, But How Does It Work? Written by Jacob Donnelly (@jaycodon), published in 8/13/2016
- Everipedia: Article on Steem
In other languages
- 繁體中文 (Chinese, Traditional) : STEEM代幣
- 简体中文 (Chinese, Simplified) : STEEM代币
- Español : Criptomonedas STEEM
- Français : Jetons Steem
- Galego : Tokens STEEM
- Italiano : Criptovalute STEEM
- 日本語 (Japanese): STEEMトークン
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If you're already a steemian you can be rewarded with steem, see how in @steemcenterwiki.