So there I was, still strugling with the worst cold so far. Things move on, SteemFest went by, in front of my nose, so close and yet so far away. Other important things were building up and SteemIt moved a bit to the background. There is just so much one can actually do in a day. Choices to be made, ah well, you know how it goes, right? In the meanwhile my Steem Power was growing on and on. And I'm about to reach the next thousand.
Somehow I must have written this all before, sometimes life almost seems like one big repeating cycle. But instead of going through all my previous posts, I'll just write another one. Just like that... Would the late Tommy Cooper have said, while messing up the trick. Actually that is not as easy as you may think. Sorry... Drifting off a bit, as usual, so that stayed the same. Back to the subject: Steem Power growth.
This is because I got asked in a personal chat with @englishtchrivy at steemit.chat to explain in simple terms how it is possible that Steem Power seems to be able to grow by itself.
You need to have some to grow more
The most simple statement is that the more Steem Power you have, the more it will grow, every day. Not exacly the same as Steem Backed Dollar currently does, at a rate of 15% a year, about 0.04% interest per day. You could see it more or less like a kind of dividend on your investment in the Steem social media platform. In the underlying blockchain technology this is known as VESTs. In an account wallet this shows up as Steem Power.
As an account holder on the Steem on Graphene blockchain, the motor that drives SteemIt dot com, you are automaticly also a fellow shareholder. The Steem social media platform is a kind of decentralized company on a blockchain. Any account gets VESTs right away, at signup. And from this first moment on, it can grow right away. Although, when an account holds low amounts of Steem Power (known as VEST at the blockchain level) this growth might not seem so obvious at first.
But for now, to keep it simple, the more Steem Power an account has, the more 'dividend' it will get every day.
VEST is Steem Power on the blockchain level
The technique is unique, there is no company that owns the database. It is decentralized and shared on many computers. No matter if some quit, it still will go on, or can be restarted. It is secured by complex math that interlocks all data in blocks and connects it as one long chain of information. And everybody can read what is on it. Even without SteemIt dot com. It only gets data from it and shows it in a fancy way. Just like an account can add posts, do upvotes and so on, through SteemIt dot com.
Still, the website is just an interface to this blockchain. Just like apps as eSteem. All these interact with the actuall Steem blockchain technology. And while this is happening, updating every 3 seconds, also value is being created, it is called Steem. And part of the created Steem will be put in the reward pool.
Part of the Steem created is distributed amongst Steem Power holders. That means actually every account that has Steem Power in it's wallet. At the blockchain level this results in a huge number, known as VEST. But in the account wallet it shows itself as Steem Power. This could be considered more easy. Instead of 10 million VEST, you will talk about having 4000 Steem Power in your wallet.
Math wise it could be considered easier to divide large numbers in VEST amongst 110.000 accounts. Specially when the amount of accounts will grow even more in the near future, hitting the magical 1 billion in about a year? Who knows...
But then it might be easier to even share 2.5 VEST, which would be about 0.001 Steem Power. And even lower values would not show up as Steem Power, like 1 VEST. But after 3 VESTs have been added on the blockchain for an account the wallet would show 0.001 Steem Power.
It will grow per minute
Every 24 hours a lot of new Steem gets created by the blockchain network. Part is used for rewarding posts, curation and so on. This shows up during a round as 'potential payout'. This value gets influenced by more upvotes with Steem Power behind it, the amount of other posts and the market price of Steem. But also a part is being divided among the Steem social media platform share holders.
So every minute new Steem is being created by the blockchain network, of which a part is being divided amongst Steem Power holding accounts. And that means that every account gets a part of that. Because every account is a share holder in the Steem realm. And the more Steem Power an account holds, the bigger the part it gets of the Steem created every round!
And as far as I know, after doing some quick math, my @oaldamster account makes about 21 Steem a day... So I'll reach another limit this weekend. This is a good reason for me to keep my Steem Power where it is right now. Because if I would start to 'Power down' of my account I would get less and less new Steem Power per round. Lowering my share in the Steem social media platform.
As long as the Steem Power is being held in a wallet it will grow. Underneath it all it is in VEST on a blockchain level. And you can see what the amount of Steem Power means in VEST at www.steemd.com/@youraccountname It shows in VEST. And it also determines the level at were the account is at. (I don't use the animals that live in the sea references myself, but instead the 'level' classification, like 'hero' and so on.)
That is why accounts Power their Steem up!
As a poster, curator, investor and so on, it pays to inVEST. Constantly, even if you decided to take a brake, or have a bad cold like me, your Steem Power will grow on. That almost sounds like a well known popular song of a feature movie. Ah well, I keep drifting off...
Anyway, I hope this helped you understand this matter a bit more. Or at least get that it pays to have Steem Power inVESTed. And that the more Steem Power you have, the more it will grow. All thanks to the way the Steem blockchain network works.
Try to find a company that gives you the kind of revenue you get on the Steem social media platform. Where we all are share holders, like one big co-operation, one great community!
Steem Power for you will grow on and on!
image cc-by-sa @oaldamster
- 50/50 payout post