The social network that pays users in cryptocurrency

If you are an avid social media user, blogger, or creator, the Steem blockchain may be a great way to earn money.

Steem is a social media platform based on blockchain technology which pays its participating members in cryptocurrency.

The cryptocurrency has a real-world value and can be redeemed for fiat currency through exchanges.

You don’t need to be a creator to earn money on Steem – readers who vote on content and long-term holders of the cryptocurrency also earn an income.

How it works

Steem is an independent blockchain which can be integrated into social media platforms, allowing users to earn money for participation.

Everyone’s meaningful contribution to the community should be recognised for the value it adds, and are three units of value on the Steem platform – Steem (STEEM), Steem Power (SP), and Steem Dollars (SBD).

Steem is the fundamental unit of the blockchain and all other Steem tokens derive their value from it. It is a liquid cryptocurrency and can be bought and sold on public exchanges.

Steem Power is an amount of Steem locked away for a period of 13 weeks, over which time it pays out interest to the holder. Steem Power also affects the “power” of the user’s vote, allowing them to curate content more effectively.

15% of the new coins minted by the blockchain are given to Steem Power holders as interest.

Steem Dollars are a stable token loosely pegged to the US dollar, and are designed to avoid the fluctuations in value often expereinced by cryptocurrencies.

Getting started

The largest platform currently using Steem is Steemit.com.

The website features a similar layout to Reddit and aims to ease newcomers into the Steem ecosystem.

The randomly-generated password users receive when signing up is also used to access their Steem wallet, and users are provided with a measure of Steem Power to give their curation some weight initially.

Users can then can vote on posts or create content.

Steemit posts

Earning money

Creating content and building a following on Steemit lets users earn money.

An author of a post earns 75% of its total payments, while curators can earn up to 25%.

The author is paid 50% in Steem Power and 50% in liquid Steem currency.

Payouts are made seven days after the post or comment is created, and rewards then appear in the author and curators’ wallets.

Once you have earned currency, you can exchange your Steem for Steem Dollars – or vice versa – on the Steemit internal market.

If you want to cashout your earnings from the Steem platform, you can trade your Steem for Bitcoin at exchanges like Poloniex.

Steemit’s Trending page shows posts with hundreds of dollars worth of curations, imply that creators can earn a notable amount in the ecosystem.

The Steemit website is one example of an application built on Steem, and any social media platform can adopt the technology.

Now read: Bitcoin vs Ethereum – Most popular cryptocurrencies in South Africa

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The social network that pays users in cryptocurrency