Steem is an open-source social blockchain created to encourage the production and sharing of content on decentralized social networks. It does this by monetizing content creation while lowering the need for advertisements and the resale of users’ data. Rather than relying on those methods, Steem rewards content creators for the value they bring. The first app released on Steem was Steemit in 2016, and to date more than 60 applications have been built by social media developers. Because Steem is designed to scale, it could support broad adoption.

 As part of the ecosystem, Steem introduced its own liquid currency, STEEM. Members who contribute content and drive social interaction within the Steem community receive STEEM Tokens as rewards. Beyond STEEM, the Steem network also supports other assets: Steem Power (SP) and Steem Dollars (SBD). Still, STEEM is the core currency of the Steem blockchain, and the other assets on the platform take their value from STEEM.

Steem launched in 2016 and was created by Dan Larimer, who is also the creator of BitShares and EOS.

What are STEEM’s key features and how does it work?

The Steem community aims to provide users with several core services. It offers a way to transact with no transaction fees, enabling micro-transactions, upvoting, and other forms of content creation and engagement with minimal financial friction. It also seeks to be a place for news and information, along with a way for participants to ask other users tailored questions.

Steem relies on a Delegated Proof of Stake (DPoS) consensus model. Under this approach, 21 witnesses are used to validate network transactions and generate new blocks. Twenty of the witnesses operate full-time, while the 21st slot is set aside for standby backup witnesses that rotate into place. This contrasts with Proof-of-Work: with PoW, miners compete to validate transactions and create blocks. On Steem, blocks are produced every 3 seconds. Delegates are chosen through a voting process, and users who stake STEEM tokens are able to vote.

Each time the Steem blockchain creates a new block, it issues new tokens. 10% of the newly created tokens are distributed to the delegates that produce the blocks, compensating them for helping secure the network. A significant portion is instead directed to the “rewards pool.” This pool is part of Steem’s distinctive “proof of brain” social consensus method for allocating tokens. In practice, it measures how much content and engagement add to the network-users can help shape this by voting content up or down.

Users then receive STEEM payments for the content they contribute, with the amount tied to the social value they are credited with providing. Contributions judged as high-value-typically supported by more “upvotes”-earn larger payments. These payouts are funded from the tokens held in the “rewards pool.” Curators, meaning users who spot and upvote valuable posts before they become widely popular, are also rewarded. Steem is notable for being the first blockchain to use this “proof of brain” social consensus.

Where can you buy STEEM?

STEEM can be purchased through the CEXs and DEXs listed here. It is available on multiple major exchanges, including Binance and Gate.io. The STEEM price may differ by exchange and can change with overall market interest. For more detailed pricing, consult the price charts above.