Steemit — How to Turn Likes into Dollars

Luis Wester
Sep 17, 2018 · 7 min read

How to Do Magic Away From Hogwarts and Turn Likes into Dollars

A process of creation of a qualitative content, whether it is a photograph or a blog post, requires tons and tons of intensive efforts. Between the concept and its actual implementation, the author faces numerous challenges, like the lack of inspiration, time, or money. In spite of this, the results of his exertions often don’t even produce enough profit to reimburse primary investments!

When finding ourselves in such situations we wonder, how great it would be to transform all “likes” from social media, where we share our “oeuvres”, into actual cash. However, there’s no need to dream about the perfect world — we already live in one.

Meet Steemit a revolutionary concept of social media service, where the creative people are paid for their talents.

The fact that many well-known platforms like Facebook or Twitter gain profit from the users’ creativity and efforts without sharing the received, comes as no surprise in a while. “Such flagrant injustice has to stop,” — the creators of Steemit, Daniel Larimer,

and Ned Scott have decided, and so the foundation was laid. Well, formally, they didn’t say exactly these words, but you got the idea.

Centralized Social Media, Twitter, Facebook, Instagram, LinkedIn vs Steemit.

What exactly Steemit constitutes?

You must be already familiar with Reddit — a big-name forum for writers, musicians, photographers, programmers and other creative people, who are sick and tired of spinning wheels while the others batten upon their efforts. Reddit doesn’t seem to run his course for the past 15 years since its creation thanks to the unique concept.

Instead of complicated and opaque mechanisms of getting content to the top (remember `Facebook and Instagram feed algorithms?), Reddit chooses a way of democracy. Every user is free to vote for whatever post he likes: the more users will vote for the specific post, the higher it will get in the “Popular” section.

Upgrading the concept of Reddit, creators of Steemit decided to come even further and to reward users financially for their contribution to the community.

Creators, curators, remitters, merchants, market makers, shoppers, entrepreneurs, bloggers, commenters, internet readers, community leaders, referrers, sign up party hosts” get an opportunity to express themselves, communicate and get wages on Steemit.

Steemit, on top of all of this, provides a crucial for the emerging publishers’ incentive. The platform gives them an understanding that their beloved occupation can bring joy & money at the same time.

Steemit, Inc is a private company with the headquarter in Virginia. Behind Steemit stands an experienced team of developers, who brought to the world such projects as BitShares, and EOS. All of these factors add more points to the reliability score of this promising startup.

SteemIt Community Photo

Apart from being the most successful Reddit’s heir, Steemit added blockchain technology to the whole forum’s concept. Thus, our “blogging and social network website” acquired its own currency Steem and SMT (Smart Media Tokens) asset, based on Steem blockchain.

The technical aspect of the startup will be discussed later, but now let’s go deeper into how one can earn money from Steemit and is this possible at all?

“Steemit — a social network that pays its community”

There are multiple ways to earn money on Steemit. Yet, all of them require making efforts (especially if you consider this forum as a jumping off point for your career or a main source of income).

The first and the most obvious method to get money from Steemit is to become a publisher and share your thoughts & talents with the audience. It’s not an easy task to create an interesting, exceptional material, which the public will appreciate. However, it’s even more complicated to make people set their eyes on your job when you’re a new member on the site.

The greatest feature for the content producers on Steemit is that there’s no need to buy Steem tokens to start publishing on site. From you only the registration is required — all other abilities you will get from the first currencies income.

For the very beginning, it might be disappointing to see your posts being underestimated. The most effective tip in such case would be to continue publishing — one of your posts sooner or later will definitely get in the top and bring you enough revenue to compensate your labor.

The second way to earn from Steemit is being an active member of the community, curator, who has to:

  • leave comments under interesting posts
  • vote for the recently-added materials, get them to the top
  • post submissions

Every contribution of the Steemit community is highly valuable, and that’s the reason why curators are the second most well-paid members of the forum. They receive the local currencies (Steem Dollars and Steem Power) for free, which later are used by them to vote for users’ posts.

SteemIt Vote Curator

As we see, Steemit has created a well-structured system, each member of which has his own role in the site’s performance. Every member is promoted to be more active and put time and resources into the project. Fortunately, every struggle later is rewarded fairly.

Apart from Steemit, creators of the project founded the startups, based on the similar principles of decentralized data storage, blockchain implementation, and gainful users’ activity. Those projects are D.tube and D.sound — the video and audio stream platforms, which can also be used as a money source for the creators.

Steem, Steem Dollars, Steem Power and Other Fantastic CryptoBeasts

Steemit project is based on 3 main actives. All of them fulfill certain functions, while their connection can be used as an example of a well-coordinated payment system.

  1. Steem tokens (STEEM) are the main blockchain units, which define the price of the other two currencies. STEEM is a liquid currency, which can be bought, sold, exchanged, and used as a payment. Steem tokens can be turned into Steem Dollars and Steem Power.
  2. Steem Dollars (SBD) are the US dollar-pegged valuables, created by a mechanism similar to convertible notes. They can be turned into actual money through the exchanges like Poloniex, HitBTC, Coingecko, Coincodex and so on.
  3. Steem Power (SP) is a long-term capital with a perspective to become an influential and highly valuable resource in time. It’s an actual guarantee of future profit to the holders (investors). As soon as the project is only starting to conquer the publicity, at this point, stakeholders are more interested in short-term income. That’s the reason why SP balances are non-transferable and can’t be turned into fiat currencies via exchanges. In addition, the amount of SP indicates the “account’s voting weight”.

Steem Coins

Steem blockchain constantly mints new tokens, and then dispenses them among miners (10%), Steem Power holders (15%) and content producers/curators (75%). The greatest part of the mined tokens is shared via airdrop in a random order among the active members of the community.

Steem chart Coinmarket Cap

One interesting feature Steemit has is that the payment for the creators is distributed in two forms. 50% of the income is SBD, and the other 50% is an equivalent amount of SP. This allows continuing to spread tokens among other users and provides creators with the long-term impact on the platform’s future.

In addition to all mentioned features, Steemit also provides no-fee policy.

More about the technical aspects of the platform you can learn through Steemit’s whitepaper and bluepaper.

With a market cap of $376,837,695 USD, Steem currently takes 39th position in the top of the biggest cryptocurrencies.

Summarizing

There’s no doubt in that the scheme of income, which Steemit proposes to the creators, works. Yes, it’s not perfect due to the abundance of posted materials and new users, who search for the source of passive income. Even so, the concept is obviously functional.

It’s only the question of time when the monitoring system will operate at full capacity so that the qualitative materials will appear at the top, while spam and copy-paste will be swiftly deleted from the feed.

To start your successful career on this platform, we’d recommend reading/watching some guides like this or that.

Steemit is a great choice both for the publishers, and the investors, who see the potentials of the project in the years ahead. During the cryptocurrencies value drop, Steemit managed to retain its price on a declared level, while such titans as Bitcoin and Ethereum were losing almost half of the value every day. This is another confirmation of the correctness of the Steemit’s chosen operating system.

Other advantages of the Steemit, which you should consider before making a final impression of the platform, are:

  • a circumspect concept of the social network platform, mixed with blockchain technology
  • a team of experts, project’s constant development
  • guaranteed income, whether you prefer to publish, comment or vote
  • no need to purchase currency to start work
  • steadily growing community
  • no fees, fast transactions

All things considered, Steemit is not only the platform for the writers and publishers. It’s an ambitious project with all chances to become a leader in the current market. Reliable, safe and progressive, it may soon “stole the show” from the giant companies, which already lag far behind Steemit idea and its technical materialization.

Read this case study and others on OnePeople.io.

Luis Wester

Written by

Luis is a marketing expert, the founder of OnePeople.io and the author of Blockchain Maximalist and numerous articles on technology, predominantly blockchain.