The Technical Stuff - How is Steem Produced?
How is Steem Produced?
Steem is produced by mining using a special version of Delegated Proof of Stake (DPOS). The exact specifics of this are beyond this article but can be found in the whitepaper (https://steem.io/SteemWhitePaper.pdf). The original version had a POW (proof of work) component but this has been replaced by having an extra (20th) top witness.
How much Steem is produced?
Please see section under "Economic Changes".
What is a witness?
The top 20 witnesses basically run the Steemit network. They are responsible for storing all the information on the blockchain and keeping it going with blocks being verified in a regular manner every 3s. Witnesses are elected by other users and earn rewards in the form of SP for their work.
Again I would refer you to the whitepaper in relation to this to get the full details. I would also suggest these helpful articles by @pfunk and @someguy123 for an alternative explanation.
How do I vote for Witnesses?
Use this page: https://steemit.com/~witnesses
Can I mine Steem?
Yes, but unlike Bitcoin and other cryptocurrencies which require you to have expensive equipment and cheap electricity, you mine Steem by creating and voting for content.
Economic Changes to Steem/Steemit December 2016
There were a number of economic changes which occured in regards to Steem production, mining and witnesses in December 2016.
The main headline change was to move from a hyperinflationary model for the creation of Steem to a new lower inflation rate. You can see this below:
The following is taken from this github page:
Set a fixed instantaneous annual creation rate of 9.5% from all sources (except Steem Dollars conversion)
Allocate 75% of the created Steem to the Reward Fund. Allocate 15% of the created Steem to the Vesting Fund as interest on Steem Power. Allocate 10% of the created Steem to the Witnesses. Witness rewards would be rebalanced such that the top 19 would earn 1/29th of the witness rewards, the runner up witnesses -would share 5/29th, and the miners would share 5/29th.
Witnesses and miners would be paid in STEEM rather than Steem Power. All votes for witnesses would expire after 3 months, this would remove the incumbent advantage and require people to continuously evaluate and vote for witnesses.
To support more equal opportunity mining the mining algorithm would be updated to use Equihash (similar to zcash).
Reducing the Steem Power holding period to a minimum of three months.
Lastly, under the new inflation rate there is no longer a need to perform a reverse split every 3 years. This would greatly simplify the life of exchanges.
Reduce the SBD delay from 7 days to 3 days and the median period should match.
Changes in 2017
There have been a number of changes to the platform.
Independent Payout Time for Comments/ 7 day payouts overall
Comments now pay out on their own schedule and there is now a single 7 day payout schedule for both posts and comments.
Rewards need to be redeemed
Rewards now also need to be redeemed by clicking "Redeem" on your wallet page - NB - they will not disappear if you don't claim them.
Post rewards can now also be shared amongs multiple recepients and people can delegate their SP to other accounts for voting.
There are also currently (May 2017) plans to change to a more linear rewards curve. Currently the reward you give when voting is related to the square of your SP.
So with the current system someone with 100 SP would have a vote that is a magnitude of 100 times greater (100x100=10,000) than someone with 10 SP (10x10=100).
With a change to linear rewards the difference would be a magnitude of 10.
This should mean that there is less differences between high and low value accounts when it comes to voting.
The communities feature is expected some time in 2017, it will basically allow separate areas for different topics, in a similar way to subreddits on Reddit.
From the little I know about Fabric I can say that it has the potential to completely change the cryptocurrency/blockchain landscape.
It sounds like a combination of sidechains/accessory chains - something which has been discussed in cryptocurrency circles but not yet successfully implemented.
That is all I can say right now because we are still waiting for more details.
For the latest changes please follow the steemitblog account: