How Powering up steem gives you a hidden magical money powers ?
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Crypto is surely spiraling down in terms of price and valuation. Thus simply hodling it makes the portfolio look ugly.
Luckily with steemit there is the option of staking it and powering up.
on tat note let us start this post which is specially written with new steemit users in mind who may find it hard to understand what is SP (Steem power ) and how voting rewards are distributed between the author and the curator.
How Powering up steem gives you a hidden magical money powers
Before answering this question one has to answer the obvious question that is ...
What is steem ?
Steem is the name of a blockchain it is also the name of the native token which users earn to create content on steemit.com which is a web 3.0 content creation platform.
As steemit.com is built over a decentralized blockchain called steem it can be a good platform to let uses create and express their content.
The deentralized blockchain not only would preserve your content but the tokenization of content would give you the ability to see the love & likes your content receives get turned into crypto
Tokeninzation is a big plus of web 3.0
The beauty of this model is that no matter where you are in this world as long as you have an internet connection and a steemit.com account you are free to create content and post under your account.
As your content is read and liked it enables you to earn crypto.
You get paid in SBD SP & Tron(currently)
The post that a user creates on steemit.com matures after a period of seven days. At that point what all revenue a post generates gets divided equally. 50% goes to the author and 50% to the curator or the person giving the vote.
To the noob users this may sound strange that the author has to share 50% of the revenue with the curators.
Think of it this way that if a person writes a post and no one reads it then he earns zero crypto on his post.
Now if a curator comes along and gives him a $10 upvote then upon maturity the $10 gets split up as $5 to the author and $5 to the curator.
So is it unfair to the curator that he has to share his earnings ?
Not really because if the curator (person voting on the post) decides not to vote at all then his voting power earns him nothing.
This the activity of content creation and curation have to co exist.
For a curator his voting power goes down by a percentage for each vote that he casts. However the lost voting power gets rejuvenated and comes back to him over a 24 hour window.
Why it makes sense to have more SP or steem power ?
The more steem power that you have the bigger votes you can give and since you are giving bigger votes you are getting bigger returns as curation.
The roles of content creator and curator over lap as a user can create content as well as curate .
However it is the joint responsibility of the content creator and the curator to ensure that quality content is created and only quality and original content gets up voted.
How to power up Steem
One can buy some steem from an exchange and use the steem in your account to power up your account.
Alternatively one can write posts and at payout depending up on the reward distribution mechanism being followed by steemit you would get your part of the reward as 50% SP (steem power) and 50% SBD
One can trade the SBD into Steem using the internal market and use the liquid steem to power up by accessing your steemit wallet.
