Question 1

What is STEEM?

Accepted Answer

STEEM is the native token of the Steem blockchain. Steem records actions such as posts, comments, votes, and transfers on-chain, and uses its token mechanism to allocate part of newly issued network tokens to content creation and curation incentives. When understanding STEEM, distinguish the network, applications, and token: Steem is the underlying blockchain and its token system, while STEEM is one of its native tokens; social applications built on the chain merely use this network.

Question 2

What is the difference between STEEM, SP, and SBD?

Accepted Answer

Steem's token system includes transferable STEEM, the locked stake form Steem Power (SP), and Steem Dollars (SBD). They are not different names for the same asset: using STEEM to Power Up creates SP, while SBD is another type of token in the network. This distinction affects what an account can do. STEEM can serve as the native token in the network's transfer of value; SP is related to account resources and voting influence; therefore, the way tokens can be used cannot be assumed to be the same merely from the token names appearing in a balance.

Question 3

How does STEEM participate in content incentives within the network?

Accepted Answer

Within Steem, STEEM is both the native token and the base asset used to enter the SP stake state. After a user Powers Up STEEM, the account receives SP; SP is not an ordinary instantly transferable balance, but a stake form linked to the account's resources and voting influence within the network. Content incentives do not mean “posting automatically earns a fixed amount of STEEM.” Votes received by content enter the network's reward calculation, and the outcomes for creators and curators depend on the rules and community voting; voting influence is related to SP.

Question 4

What changes after powering up STEEM?

Accepted Answer

Power Up is the process of converting STEEM into Steem Power (SP). Once completed, the tokens are credited to the account as stake, the account typically has more available bandwidth, and its content votes carry greater influence. SP therefore does more than merely change how a balance is displayed: it links holdings to on-chain operational capacity and content-curation weight. Official materials state that bandwidth recovers over time; available resources vary with an account's SP status.

Question 5

How does Steem produce blocks?

Accepted Answer

Steem uses delegated proof of stake (DPoS) to produce blocks: witnesses undertake block-production duties, rather than traditional proof-of-work miners competing to produce blocks. Votes by network participants affect the witness selection mechanism, and witnesses participate in network operations according to protocol rules. This creates an indirect connection between SP and consensus participation: SP affects voting weight, voting can affect witness selection, and selected witnesses produce blocks. Holding SP does not mean an account automatically becomes a witness or directly produces blocks.

Question 6

How is new STEEM created and distributed?

Accepted Answer

New STEEM supply comes from protocol inflation rather than mining. In the historical allocation framework described by the official bluepaper, blocks create new tokens at a fixed cadence and distribute them among the content and curation reward pool, stake holders, and witnesses. This material is a historical framework and cannot be used to infer the current specific proportions for each category or the current inflation rate. The mechanism it illustrates is that content incentives, stake participation, and block production are all connected to newly issued token distribution, with supply and allocation jointly determined by protocol rules.

Question 7

Why do operations on Steem involve bandwidth?

Accepted Answer

Bandwidth is a resource used for on-chain operations on Steem; posting, commenting, voting, and transferring all consume it. Its function is to make an account's operational capacity related to its stake status, rather than simply treating each social action as a fixed token fee. Accounts holding more SP typically have more available bandwidth; resources do not disappear permanently once consumed, but regenerate over time. Therefore, both operating frequency and an account's SP status affect whether it can continue submitting operations at a given time.

Question 8

What is the difference between Steem and Steemit?

Accepted Answer

Steem is the blockchain and its token and consensus system; Steemit is a social application built on Steem. Their relationship is like that between an underlying network and an application that uses it, rather than two names for the same product. Therefore, using Steemit does not make the application itself equivalent to STEEM, nor does it mean that all on-chain Steem activity can only take place through Steemit. When assets are involved, further distinguish STEEM, SP, and SBD rather than treating an application's name as a token name.

Steem (STEEM) Price