Steem (STEEM) stands as a cryptocurrency powering the decentralized social media platform, Steemit, established in 2014 by Dan Larimer. Unlike conventional social networks such as Facebook and Twitter, Steemit operates on a blockchain, ensuring decentralization, censorship resistance, and the absence of a central authority. Users are encouraged to create and share content on Steemit, with the unique feature of receiving financial rewards in the form of Steem coins.

Value and Problem Solving

The value of Steem lies in its departure from the issues prevalent in centralized social platforms. It addresses concerns such as censorship, central authority, downtime, data vulnerability, and data abuse. By leveraging blockchain technology, Steem provides a decentralized environment where users can actively contribute content and be rewarded for their engagement. The financial incentive, in the form of Steem coins, Steem Dollars, or Steem Power, sets Steemit apart and encourages users to participate actively.

Tokenomics and Risks

In terms of tokenomics, Steem creates new coins daily, distributing them as follows: 75% to authors and curators, 15% to holders of Steem Power, and 10% to miners. Steem Dollars (SBD) aim for stability, pegged at a 1:1 value with the US dollar, and offer a 10% annual interest when held. Steem Power (SP) represents a user's influence on the platform, with more SP translating to greater voting weight.

However, the platform faces several risks. The "Voting Game" is susceptible to abuse through the creation of bots for spam voting, with measures to combat them openly shared. The strong financial motivation introduced by rewarding users may shift the platform's culture from knowledge sharing to a competitive space focused on monetary gains. Instances of plagiarism have emerged, as curators prioritize content with high earning potential over original creations. Additionally, market fluctuations in the value of Steem can occur due to the daily creation of new coins and their subsequent cashing out by users.