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On the front page, it might say there are people making $1000s of dollars but the mechanics of Steemit means they have to share the 10% withdrawal cap with other producers.  Example if you are a producer on Steemit and made $30,000+ on there, it would literally take you many years to withdraw that money.  This problem is only compounded when more producers hop on Steemit and are trying to withdraw their money too.   Anyone want to wait 50 years to get their money out of Steemit?   :D

This is clearly a scam where they are setting up false expectations and false advertisements by showing producer's amount earned: "look at all these people making $1000s!  Why aren't you doing it too?", without telling viewers there is no practical way to withdraw that money.    The inability for producers to withdraw their Steemit also explains why there are hardly any coins on the exchanges and the current capitalization manipulation / pump.

https://s32.postimg.org/gghp5u2sl/Pending.png

Here is an image of a "pending payout".  These numbers are displayed all over the website but it is NOT the same thing as $USD or coins which can be withdraw.  


This "10%" figure refers to these pending payouts, so people will have to wait in line for months and years to get their coins.

The other 90%?  Goes towards the developers and other insiders, who are able to cash out with ease. Scam.

Check posts with past payout and check authors wallet, also read whitepaper.

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

You can start by reading https://steem.io/ including the white paper.  They have quite a detailed website and project.

This is actually a good project had 3 post there before I got busy i did not read about the part on payout,but if you have those figures and you put a lot of effort to contribute to the network (which us not easy might as well set up a blog instead ) you're going to think of how to cash out and when to cash out and people will get disappointed if those are only figures and cannot converted to real cash..

This is where the false expectation lies start.  Already people are seeing $1000s deposited on their account but cannot convert / withdraw it to real dollars, despite it displayed as such on the website.  Many people have been "pending" for an extremely long time. It's an illusion to lure in producers and the gullible.  Almost reminiscent of multi-level marketing.

Then step 2:  when word spreads about "money" (even if it is fake), then what you will see will be a horde of fake Facebook accounts liking their own stuff.  When the bots are spamming upvotes for their own stuff then authentic people will get less money and then you will see them leave.

Steem is not the first people who have done a Facebook / Reddit clone.

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places. :P

This is going to hurt when it all comes toppling down. I see much butthurt in the near future. :D

The irony is that now everyone who bought thousands at 10p each have a lot of voting power and they are all voting for steemit pump thread. Viva la revolution

u mean those beautiful nigerian prince

Hitler's failed plans about STEEM

https://steemit.com/steem/@chryspano/hitler-s-failed-plans-about-steem

Yes they seem to have completely rediculous pump and you can see most of the post on trending in steemit is from bittrex staff post or something like that. I think admin or staff are posting or upvoting bittrex post and post related to steemit only. Better to sit back rather than jumping into this daily 2x pump in price.

Holy ****!  Now I'm really gonna read that white paper.  Are those naked girls really naked girls doing it for real?  Wow.

https://whatsablackgirltodo.files.wordpress.com/2014/03/catfish_featurephoto2-356x243.jpg

You've been catfished.

I didn't notice it until you mentioned it.  Didn't see this one coming.  I usually watch the markets at Polo and tend to avoid Trex.  But anyway, now we know why BTS is rising as well.  

So I guess the play here is to buy into BTS if you hate risking BTC in STEEM.  It seems overbought at this point.  Congrats to the holders.

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

It's an interesting tactic. The number of coins out in the wild - the free float if you like - is miniscule. They can therefore make the coin look like it has this massive cap when in fact it doesn't. A good example of this is the ask side on Bittrex, which at 35,000 Steem is currently less than 0.05% of the supply.

Btw, currently $400M cap (https://web.archive.org/web/20160713044003/https://coinmarketcap.com/) supported by a whole 200 BTC on Trex (https://archive.is/hcY69). lolol...

Very smart of the creators of Steem. They beat everyone to the punch and could be on a potential gold mine here.

There's already been a bunch of Facebook and Reddit clones which offered money to content producers.  None worked out.  

Unfortunately we see this in crypto too much - people reinventing old wheels and claiming it hasn't been done before, when in fact, people have been doing these sort of things for ages.

I would like to point out that it is clear the OP does not understand how Steem contribution rewards work.

You get 50% of your contribution rewards in around 24 hours via SBD, which is immediately tradeable for STEEM/BTC/FIAT/etc.
You can get the other 50% via 104 equal weekly payments over the course of 2 years.

Obviously, the OP is exaggeratingly misleading.

Maybe I am an old, but I would not consider 2 years as being "many years", and to state it may take 50 years is preposterous.

For a minute I was worried your obvious hard-on for the Larimers wouldn't carry over to Steem. You don't disappoint.

Do they pay the bots?

https://steemit.com/@wang/transfers (https://steemit.com/@wang/transfers)

Had they made th epump look a but more natural then maybe they could have tricked a few more people to spend some money on steem, but the fact that the pum was so obvious says to me that this is just one person or a small group artificially pumping up whats probably just another shit coin getting ready to dump.

Very interesting to see good threads get a lot of upvotes and comments, but are nowhere on the trending list and their producers are actually getting no money.   Meanwhile there's stuff trending with huge payouts, no comments and hardly any votes- such as reposts of Bitshares news.

All the steem power concentrated by the developers has effectively turned that website into a Bitshares echo chamber.    :D

The wonderful thing about STEEM is that a large percentage of it is held in STEEM POWER (over 90%).

STEEM can immediately be converted into STEEM POWER, but STEEM POWER cannot immediately be converted into STEEM.

Therefore, 90%+ of the STEEM tokens can only be dumped via 104 equal weekly payments over the course of 2 years.

The volume on exchanges represents under 10% of the STEEM money supply.

That is why it took such a little amount of volume to be pumped so high.... most STEEM it is locked up in STEEM POWER.

Owning more STEEM POWER gives people more sway in the curation of content, while at the same time allowing them to earn bigger rewards for doing so.

Owning STEEM POWER is a long term investment in the STEEM ecosystem.

I suggest reading the whitepaper. They have created a very elegant ecosystem. https://steem.io/SteemWhitePaper.pdf

Alternatively, there is a lot of information linked here: https://steemit.com/wikiversity/@boardwalk-steem/lets-start-a-steemit-resource-repository

I know!  But those boobs though...  How many more of those does Steem have?  I imagine there would be a lot the next 2 or 3 years.

The funny part is that it was possible to buy cheapest Steem just a week ago. But only very few realized the market dynamics.

The website is not totally separate from the blockchain. It is a view of the blockchain, essentially a feature-rich web wallet.

OP, the 90%/10% stuff does not work the way you suggest. Authors who have gotten payouts have in many cases converted those coins to BTC, then to fiat, and ended up with real money in their bank accounts. Many of these stories were posted when payouts started July 4th. The idea that the payouts "aren't real" is nonsense. None of the author rewards go to the devs (unless of course, they make posts and get upvotes like anyone else). Stakeholders can get rewards by voting, but the main dev account 'steemit' with millions of early-mined coins, does not vote so it does not get any rewards.

None of this means it is a good investment. Do your own research. If you don't understand it, stay away.

The Larimers are scum.

I think many of these points are valid, but it's too early to say what will happen. As payouts decrease with the flurry of new users, it will be interesting what happens with lowered incentives. Fundamentally, a 100% inflationary system is hard to support.

At this point, from what I can tell you only needed to have photos of your tits out to get massive upvotes and collect large payouts. Sustainability  needs to come from somewhere else.

It isn't an 100% inflationary system overall. The 100% inflation is applied to the liquid STEEM token to encourage people to shit or get off the pot. I.e. either power it up into Steem Power form or trade it to someone else who will. This ensures that at any given time most of the stake is locked and people owning it have incentives to care about the longer-term health of the system. Once in Steem Power form the effective inflation is much lower. The exact number varies depending on the percentage that is powered up but in practice will likely be single digits positive inflation. In theory it could be zero or negative inflation (unlikely though).

Friendly guy has a good life. It is a positive synergy being healthy, happy, in a positive environment, and feel you are doing worthwhile activities. I lack almost entirely those attributes at this particular juncture of my life, although I've had some of those at various junctures in my life.

Perhaps you all read my post (https://bitcointalk.org/index.php?topic=1480810.msg15538471#msg15538471) about Steemit's business model (https://bitcointalk.org/index.php?topic=1480810.msg15543115#msg15543115). And there is my damning slamdunk followup (https://bitcointalk.org/index.php?topic=1480810.msg15568405#msg15568405).

Yeah, we all know the Larimer gang are experts at inflation.  What was the terminology that they used in Bitshares to describe it?  ....  Oh, I remember.  It was "Dilution without limit!"

@BigSirko, @TaunSew,

this is very interesting.

U have pointed out some aspects of STEEMIT that we should be looking into.

We should also note that Dan, the creator of the BitShares, is the intelligence behind the system.

~CfA~

Honestly I initially though this was a full on scam and it could still be it, this is crypto after all. However learning about Steem, Steem Power and Steem Dollars is interesting to say the least.

I haven't seen a concept like this in crypto where the currency itself is actually not something to hold forever (Steem) as it has crazy inflation to peg the Steem Dollar. Steem Power on the other hand is basically the share you have in the "company".

That as a system is disruptive to me, there may have been versions of this in the past but I'm not aware of. The only thing I have strong doubts is how "whales" influence the whole platform and there are a handful of them. But oh well, what about Zuckerberg, this is like complaining he has too much influence on Facebook...

If the platform works, then making cents everyday is much better and fun than being on Reddit or whatever, that's the bottom line. It's the actual idea behind decentralization and crypto, why produce content and give all this information to companies when we can all benefit from it based on our work or merits?

The concept of social crypto currency could be here to stay if this gets even more traction.

This is wrong. Half the reward is completely liquid. For example if you look here you can see someone who just received 7,185.425 Steem Dollars (SD) as a reward (worth a bit more than 7185.43 USD given current market prices). That has no restrictions on cashing out whatsoever.


The other half of the reward, the Steem Power, is a form of "karma" that affects your influence on the site and can only be cashed out (if at all) over two years. Many users have no interest in cashing it out.

Either way there is no shared 10% withdrawal cap. That completely doesn't exist and BigSirko made it up.

Cool story bro... but that's all it is.  It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?


Thank u in advance.

~CfA~

Haven't you heard?  The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

He is perhaps confusing the 10% yearly dilution (out of the 100% dilution) (https://bitcointalk.org/index.php?topic=1558366.msg15686485#msg15686485) of the market capitalization which is redistributed to users, miners, and liquidity providers.

Well Satoshi could appear and sell all his millions of BTC too. Do people really fall for the decentralized lies? Do you really think BTC is decentralized? I'm not defending Steemit since I never said it was "decentralized" since I don't really care about that. I don't care about Steemit either, I just find it interesting, even if it's a huge scam, the concept of having millions of users fighting to create and curate the "best" content for money (not only attention) is mindblowing to watch. I don't think Steemit itself will have a lot of success but it's definitely the start of something if other platforms do it better.

It is confusing to me also. So far all wallets are on the forum. So has nothing to do with decentralization. is like all bitcoin would run on a one web wallet. That is why there are so much troubles with security and i think it will just continue.

i might be totally wrong, that is why i said i am confused.

Hypothetically you could create your own Steem(.io) client and not use Steemit.com, but the blockchain is proof-of-stake (DPoS) and the insiders control something like 80% of the stake, so yeah it is centralized control.

So far, the public keys are all on the blockchain and the user holds his own copy of the private key. This is why the security has been so bad, because users can't manage well secure passwords.

smooth points out that the stake may distribute out over time, but I have also pointed out that it may not (https://bitcointalk.org/index.php?topic=1558366.msg15691644#msg15691644). Edit: also in another discussion with smooth (https://bitcointalk.org/index.php?topic=1548369.msg15675586#msg15675586) about voting power effects where I argued that the power-law will dominate over time because afaik there is no algorithm preventing such a game theory strategy.

Not hypothetical. It exists, but is immature: https://steemit.com/piston/@xeroc/piston-web-first-open-source-steem-gui---searching-for-alpha-testers

Agree about proof-of-stake and the stake being highly concentrated.