Steem (STEEM)

Social Media and Content Creation

Steem powers social media platforms like Steemit, D.tube, and Dlive, where users can create, share, and curate content. Users earn Steem tokens as rewards for their contributions, such as posting, commenting, and voting. This system encourages community building by directly compensating content creators and curators.

Decentralized Applications (dApps)

Beyond social media, Steem supports various decentralized applications including those in decentralized finance (DeFi) and blockchain gaming. Developers can build on the Steem blockchain to create apps that benefit from its fast, fee-less transactions and incentivized user engagement.

Cryptocurrency and Rewards System

Steem is a liquid and transferable cryptocurrency that users can trade, send, or use for payments. It includes three token types: STEEM (the main token), Steem Power (SP), which represents influence and voting power on the platform, and Steem Dollars (SBD), a stablecoin pegged to the US dollar used for transactions and rewards. This system rewards users instantly based on their value to the network.

Community Governance and Influence

Users with Steem Power have greater influence on the platform, including voting on content payouts and participating in governance decisions. This creates a community-driven ecosystem where stakeholders help shape the platform’s future.

Data Ownership and Decentralization

Steem allows users to maintain control over their data without censorship or downtime. The blockchain ensures content ownership is permanent and secure, providing a decentralized alternative to traditional social media platforms.

Advantages of Steem

• Steem rewards users for creating and curating content, allowing them to earn cryptocurrency for their participation.
• It offers a fast, free, and scalable blockchain platform suitable for social media applications.
• Users maintain control over their content, unlike traditional platforms where the platform owns the posts.
• The platform uses Delegated Proof-Of-Stake (dPoS), which allows community members to elect block producers, promoting decentralization.
• Steem Power holders have more influence on content rewards and receive a share of newly minted STEEM annually.
• The system encourages quality content by rewarding premium contributions and penalizing selfish voting behaviors.
• Steem integrates social media and cryptocurrency, making it easy for users familiar with platforms like Reddit to join.
• It supports multiple tokens (STEEM, Steem Dollars, Steem Power) to balance liquidity, stability, and influence.
• The platform is non-custodial and decentralized, ensuring data security and no downtime.
• Steem-based apps benefit from an existing user base and ecosystem.

Disadvantages of Steem

• The supply of Steem increases automatically by 100% each year, which can lead to inflation.
• Holding Steem for a long time is not recommended; users are encouraged to convert it to Steem Dollars or Steem Power.
• The price of Steem can be highly volatile and susceptible to market manipulation due to low liquidity.
• Steem is not designed as a short-term investment or speculative tool for quick returns.
• The platform has experienced controversies and restructuring, such as the 2020 takeover by Tron.
• Not many exchanges offer direct fiat-to-Steem trading pairs, which can complicate buying and selling.
• The long vesting period for Steem Power (minimum 13 weeks) can limit liquidity for some users.
• Some users may find the Delegated Proof-Of-Stake system and staking mechanisms confusing at first.
• Despite its features, Steem has faced significant price declines and market underperformance compared to other cryptocurrencies.

Founders of Steem

Steem was founded by Ned Scott and Dan Larimer. Ned Scott is a corporate executive turned crypto enthusiast and co-founder of Steemit, Inc., the company behind Steem. Dan Larimer is a blockchain developer and visionary software engineer who also created BitShares and later EOS. Together, they launched Steemit, the first social media platform built on the Steem blockchain, in 2016.

Investors in Steem

Steem was originally launched by Ned Scott and Dan Larimer, who were key figures in its development. The platform was later acquired in February 2020, and since then, it has been associated with the Tron blockchain ecosystem led by Justin Sun. This acquisition brought new investors and restructuring to Steem's operations.

Types of Investors

• Individual Users: Many investors are users who earn STEEM tokens by creating and curating content on Steem-based social apps like Steemit, DTube, and Utopian.
• Crypto Traders: Investors who buy and sell STEEM on various cryptocurrency exchanges such as HTX, Coinbase, and others.
• Institutional and Venture Capital: While specific names are not publicly detailed, Steem has competitors and operates in a space with venture capital-backed companies, indicating some level of institutional interest.
• Community Stakeholders: Users who hold Steem Power and participate in governance also act as investors by supporting the network and earning rewards.

Summary

Steem's investors include content creators, crypto traders, community members holding Steem tokens, and entities linked to the Tron ecosystem after its acquisition. The platform encourages investment through participation and token holding, making its user base a key part of its investor community.

Halal Status of Steem

Steem is generally considered halal because it serves a real-world purpose as a blockchain-based rewards platform that allows content creators to earn tokens for their contributions. It operates transparently without involving interest (riba) or gambling (maysir), which aligns with Islamic finance principles. However, as with all cryptocurrencies, individual scholars may have differing opinions, and it is important to consider the specific use and structure of the token.