What is Steem (STEEM)?

Deep Dive

1. Purpose & Value Proposition

Steem aims to decentralize social media by directly rewarding users for contributions like posts, comments, and votes. Unlike traditional platforms where profits go to shareholders, Steem redistributes 90% of newly minted tokens to content creators and curators (Steem Whitepaper). Its flagship app, Steemit, demonstrates this model, though over 300 other apps also leverage the chain.

2. Technology & Architecture

Built on Graphene technology, Steem uses Delegated Proof-of-Stake (DPoS), where 21 elected "witnesses" validate transactions every 3 seconds. This enables free, near-instant transactions – a critical feature for social apps requiring frequent interactions. The chain processes ~1.2M daily transactions, outperforming Bitcoin and Ethereum in throughput.

3. Tokenomics & Governance

• STEEM: Liquid token tradable on exchanges
• Steem Power (SP): Staked token granting voting rights and higher rewards
• Steem Dollars (SBD): Stablecoin pegged to $1 USD
  New STEEM tokens are issued at a declining inflation rate (starting at 9.5% annually), with distributions weighted toward active users rather than validators. Governance is community-driven, with SP holders electing witnesses and funding proposals.

Conclusion

Steem pioneered "social-fi" by integrating crypto rewards into content platforms, though challenges like concentrated voting power among large stakeholders persist. Its infrastructure remains uniquely tailored for high-frequency social interactions. Can Steem’s tokenomics adapt to balance creator incentives with long-term sustainability as the ecosystem evolves?