STEEM Coin: A Social Blockchain that Rewards Users for Content Creation and Curation

STEEM Coin: A Social Blockchain that Rewards Users for Content Creation and Curation

STEEM Coin (STEEM) is the native cryptocurrency of Steem, a social blockchain that allows users to create and curate content online, and get paid in cryptocurrency. Steem is designed to provide an instant earning opportunity for users based on their value to the network. Steem leverages technologies from both social media and cryptocurrency to provide users with value. Steem was launched on March 24, 2016, and it was originally forked from BitShares, another blockchain project by Dan Larimer.

Coin Introduction and Features

STEEM Coin has three types of tokens: STEEM, Steem Power (SP), and Steem Dollars (SBD). STEEM is the basic liquid currency of the network, which can be traded on exchanges, transferred to other users, or converted to SP or SBD. SP is a vested token that represents the user’s stake in the network, which determines the user’s voting power and influence on the network. SP also generates interest over time, which can be claimed as STEEM. SBD is a stable token that is pegged to the USD, which can be used as a medium of exchange, a store of value, or a unit of account. SBD can also be converted to STEEM or SP.

Some of the features that STEEM Coin offers are:

• Fast and free transactions: STEEM transactions are confirmed in about 3 seconds on average, and there are no transaction fees on the network.
• Scalability: Steem can handle a high transaction volume, as it uses a delegated proof-of-stake (DPoS) consensus mechanism that allows for 21 elected witnesses to produce blocks every 3 seconds.
• Security: Steem uses a DPoS consensus mechanism that ensures the security and decentralization of the network, as well as a Byzantine fault tolerance (BFT) algorithm that prevents forks and double-spending.
• Governance: Steem is governed by the community, which can vote for witnesses, propose and approve changes to the network parameters, and fund projects and initiatives through the Steem DAO.

Market Analysis and Trends

STEEM Coin is one of the most popular and well-established social cryptocurrencies on the market. It has a market capitalization of about $135 million as of March 7, 2024, making it the 375th largest cryptocurrency by market cap1. It has a circulating supply of 456.9 million coins and a maximum supply of ∞ coins.

STEEM Coin has experienced significant price fluctuations since its launch, reaching an all-time high of $8.57 on January 3, 2018, and an all-time low of $0.07 on March 11, 20171. As of March 7, 2024, the price of STEEM Coin is $0.29, which represents a 0.96% decrease in the last 24 hours1.

Some of the factors that influence the price of STEEM Coin are:

• Demand and supply: The demand and supply of STEEM Coin depend on the market sentiment, the adoption rate, the innovation, and the competition of the coin. As more users and platforms adopt STEEM Coin for its social features, the demand and the price of the coin may increase. Conversely, if the market sentiment is negative, the adoption rate is low, the innovation is stagnant, or the competition is fierce, the demand and the price of the coin may decrease.
• Reward pool: The reward pool is the amount of STEEM that is distributed to the content creators and curators on the network. The reward pool is determined by the inflation rate of the network, which is currently set at 9.5% per year and decreases by 0.01% every 250,000 blocks. The reward pool affects the price of STEEM Coin, as it influences the supply and the incentive of the users.
• Regulatory and legal issues: STEEM Coin faces some regulatory and legal challenges, as some governments and authorities may view its social features as a threat to their oversight and control. Some countries, such as China and Iran, have banned or restricted the use of STEEM Coin and other social cryptocurrencies, citing concerns over censorship, propaganda, and extremism. This may limit the adoption and the growth of STEEM Coin in some markets and regions.

Project Updates

STEEM Coin is constantly being developed and improved by the Steem team and the community. Some of the recent updates and announcements for the Steem project are:

• Hard fork 25 (HF25): The Steem team is working on the 25th hard fork for Steem, which is expected to be activated in May 2024. The hard fork will introduce several changes and improvements to the network, such as:
  • Reducing the power down period from 13 weeks to 4 weeks, which will allow users to withdraw their SP faster and easier.
  • Increasing the account creation fee from 3 STEEM to 10 STEEM, which will reduce spam and abuse on the network.
  • Implementing a new reward curve, which will make the distribution of rewards more fair and balanced.
  • Introducing a new curation algorithm, which will reward curators for finding and upvoting quality content.
  • Adding a new comment voting window, which will prevent self-voting and vote farming on comments.
• Steem DAO: The Steem DAO is a decentralized autonomous organization that funds and supports various projects and initiatives that benefit the Steem ecosystem and the community. The Steem DAO is funded by a portion of the inflation of the network, which is currently set at 10% of the reward pool. The Steem DAO allows users to propose and vote for projects that they want to see funded, such as:
  • Steemit: A grant of $50,000 was awarded to Steemit, the flagship app of Steem, which allows users to create and curate content online, and get paid in cryptocurrency.
  • Steem Keychain: A grant of $10,000 was awarded to Steem Keychain, a browser extension that allows users to securely manage their Steem accounts and transactions.
  • Steem Monsters: A grant of $20,000 was awarded to Steem Monsters, a collectible card game that runs on the Steem blockchain, where users can buy, sell, trade, and battle with their cards.

Analysis and Recommendations for Investments

STEEM Coin is a promising cryptocurrency that offers a unique value proposition of social and financial rewards for its users. It has a solid technical foundation, a dedicated team, and a supportive community. It also has a loyal and growing user base, as well as a potential market niche among social media enthusiasts and content creators.

However, STEEM Coin also faces some challenges and risks, such as regulatory uncertainty, market volatility, and competition from other social cryptocurrencies. It may also need to overcome some barriers to adoption, such as user education, usability, and integration.

Therefore, investing in STEEM Coin may require a long-term perspective, a high risk tolerance, and a thorough research. Investors should also diversify their portfolio and only invest what they can afford to lose.

Outlook and Community Response

STEEM Coin has a positive outlook for the future, as it continues to innovate and improve its technology and features. The upcoming hard fork 25 (HF25) is expected to bring significant benefits and enhancements to the Steem protocol and the user experience. The Steem team and the DAO are also working on various projects and initiatives to support the Steem ecosystem and the community.

The Steem community is also active and engaged, as it participates in various forums, social media platforms, and events. The community members share their opinions, feedback, and suggestions, as well as their support and enthusiasm for Steem. The community also contributes to the development and the promotion of Steem by creating and supporting various tools, applications, and resources.

Some of the examples of the community response to Steem are:

• Steem Fest: An annual event where Steem users and enthusiasts gather to network, learn, and have fun.
• Steem Hunt: A platform where Steem users can discover and share new and cool products, and earn rewards for their contributions.
• Steem Press: A WordPress plugin that allows users to publish their WordPress blogs on the Steem blockchain, and earn rewards for their content.