What is the issuance and circulation of STEEM coins?

STEEM coins were initially distributed in 2016 through an ICO, raising $3 million for the development of the Steem blockchain.

Nov 26, 2024 at 08:14 pm

What is the Issuance and Circulation of STEEM Coins?1. Initial Coin Offering (ICO)

STEEM coins were first distributed through an ICO in March 2016.
A total of 250 million STEEM coins were created, with 100 million sold during the ICO.
The ICO raised a total of $3 million, which was used to fund the development of the Steem blockchain and ecosystem.

2. STEEM Power (SP)

STEEM Power (SP) is a measure of a user's influence on the Steem blockchain.
SP is earned by holding STEEM coins and interacting with the Steem ecosystem, such as posting content, voting on content, and curating content.
SP can be used to reward content creators, vote on proposals, and run witnesses (nodes that maintain the Steem blockchain).

3. STEEM Dollar (SBD)

STEEM Dollar (SBD) is a stablecoin that is pegged to the US dollar.
SBDs are minted by converting STEEM coins into SBDs at a rate of 1 SBD = $1 USD.
SBDs can be used to reward content creators, buy goods and services, or purchase advertising on the Steem blockchain.

4. Current Circulation

As of March 2023, there are approximately 350 million STEEM coins in circulation.
Of this, around 150 million STEEM coins are actively traded on exchanges.
The remaining STEEM coins are held by long-term investors, users, and witnesses.

5. Issuance Rate

The issuance rate of STEEM coins is determined by a formula that takes into account the total amount of STEEM Power (SP) in circulation.
The issuance rate is currently set to 10% per year.
This means that 10% of the total supply of STEEM coins is created each year and distributed to users based on their SP.

6. Burning Mechanism

STEEM has a built-in burning mechanism that reduces the total supply of STEEM coins over time.
When STEEM coins are converted into SBDs, 1% of the STEEM coins are burned.
This mechanism helps to maintain the value of STEEM coins by reducing the total supply.

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