RE: Ask Me Anything About Steemit Wednesday (AMAWED) Exclusively For Newbies #2. Join Us From 10.30 AM (CET) Today.

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RE: Ask Me Anything About Steemit Wednesday (AMAWED) Exclusively For Newbies #2. Join Us From 10.30 AM (CET) Today.

prettycynthia (54)in #redfishpillar • 7 years ago (edited)

Thanks ma. I have been doing my part if that's the case. But i face this challenge each time i preach the steemit gospel.."they always ask where the money come from"..you know plenty Nigerians have fallen victim to some fraudulent ponzi or the other and that mentality of anything internet being a ponzi is a big problem. Immediately i talk to anyone about steemit the question i always find difficult to answer is "where the money comes from question.

What's the best possible way to explain this to a person with the dullest brain? Thanks

7 years ago in #redfishpillar by prettycynthia (54)

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maryfavour (63) 7 years ago (edited)

You are most welcome, @prettycythia. I understand most of the issues with ponzi schemes and the reason why many Nigerians now ask, where does the money come from. I am going to begin by stating that none of the cryptocurrencies are really money. They are cryptographic tokens that people value and that value is what is exchanged for fiat currency(government approved currency) e.g Nigeria Naira (NGN). That said. I will go ahead to paste an excerpt from the recent steemit bluepaper, page 2 below

The Rewards Pool (“Where do the tokens come from?”)
One of the most innovative (and most misunderstood) aspects of the Steem blockchain is the
“Rewards Pool” from which tokens are distributed to valuable content creators. In order to understand
what the Rewards Pool is, one first needs to understand that tokens are produced differently
in DPoS blockchains than they are in PoW blockchains. In traditional PoW blockchains, tokens
are produced regularly but randomly distributed to the people whose machines are performing
work (“miners”).
Different from PoW-only cryptocurrencies, tokens in Steem are generated at a fixed rate of one
block every three seconds. These tokens get distributed to various actors in the system based
on the defined rules of the blockchain. These actors, such as content creators, witnesses, and
curators, compete in specialized ways for the tokens. Unlike the traditional PoW means of
distribution, where miners are competing over raw computing power, the actors in the Steem
network are incentivized to compete in ways that add value to the network.
The rate that new tokens are generated was set to 9.5% per year starting in December 2016,
and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation
will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5
years.
Of the supply of new tokens created by the Steem blockchain every year, 75% of those tokens
compose the “rewards pool” which are distributed to content creators and content curators.
15% are distributed to vested token holders, and 10% are distributed to Witnesses, the block
producers cooperating inside Steem’s DPoS consensus protocol.

@maryfavour for @redfishpillar project

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prettycynthia (54) 7 years ago (edited)

wow!! your work here is really wonderful. thanks for giving me these answers...you are my future witness lol. You are beautiful too (in Mayorkun's voice)

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maryfavour (63) 7 years ago

thanks for giving me these answers...you are my future witness lol.

Future witness...I'm not a geek. Thanks for the complement, dear. I wish I knew who Mayorkun is. Lol!

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