This is the first in a series of posts in which I will discuss important Steem terminology and details of the inner workings of this platform in a way that minnows (like myself) can understand. There are many excellent posts covering what I intend to discuss but I wanted to tailor this series to newbies and really break down some of the concepts into bitesize, digestible pieces of information.
"Knowledge is Power" and Steemit is no exception to this rule. The purpose of these posts is to communicate a new piece of knowledge that can be easily and quickly digested rather than bombard the reader with a thesis of information.
In this first post, I will give a simple explanation of the term "Vests".
Vests are essentially shares of Steemit. By owning "Vests", you effectively have a stake or equity in Steemit.
But what is Steem and why is it different to Vests or Steem Power?? This is an excellent question which most of us newbies have asked ourselves.
If you think of the entire Steem capitalisation which has a current market value of $533,806,000 and a supply of 250m units of Steem), the majority of this supply is held in a Steemit fund.
This is depicted in the diagram above. The important message to get from this post is that MOST of the steem in existence is held within this fund. When someone buys into the fund (by "Powering Up") they are given shares of the fund which are demoniated in Vests (Currently 1000000 Vests = 480 Steem).
This is all I'm going to cover in this post as I think the ecosystem of Steemit is complex and understanding one key concept at a time will be more beneficial than a comprehensive explanation of the whole system in one post.
Next I will discuss why the ecosystem is structured this way and where Steem Power and Steem Dollars come into the equation.
Thank you for reading.
As I understand it (please correct me) from reading various posts, there is 9% new steem created this year, 90% of which is given via steem power share. So that means 9%x90%/365 = 0.02% of the market cap of steam is given out every day by vesting.
Hi @digimad, yeah that sounds right. It would be interesting to see a graph or table showing the daily increase in the Steem supply. Thanks for the comment.
Thank you for this! Although, there are a lot of posts about the concepts I find it is complicated enough where one must read a few to really understand. I am excited for my first blast of Steem so I can power up!
This was helpful. Thanks!
Power me up. Seriously :)
excellent work. I'm excited to read more of this series. Following along now :)
Thank you for sharing this!
Thanks for breaking it down. I'm looking forward to more.
Cheers for doing this :) love the platform but feel like such a noob still.
very helpful!
Thanks for the explanation!
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Great idea for a series of posts. Although I already knew the information, it was an excellent breakdown that helped cement my knowledge and I am sure will help many who read the article to understand this mildly complex system we use!
Very helpful post especially for newcomers @bitgeek. I only heard of Vests after I checked out steemdb.com and saw that there was a direct conversion between Vests and STEEM: 1 MV = 482.792 STEEM
Good to know! I am investing little by little. . . Thanks!
Thank you very information and digestible. Did not want to bit of too much. :)
Great post... Thanks ;-)
Tnx had been wondering about this 'preciate.
Love your thinking of "little by little" in learning. I knew Steem power was just that--equity "power" within the Steem community. Nice to see some details.
Very helpful 👍 Thanks for sharing. As you said a piece at a time is more easily digested than a whole cake. Looking for more.
Thanks a lot for sharing this!
I asked this question today on another thread. I have been looking around for an explanation but haven't found anything useful. This helps a lot and I appreciate it.
Thank you for teaching us newbies something new! Can't wait for your next post.
Thanks for the info, it is helpul.
Thanks for sharing. I look forward to reading your posts to better understand Steem and the ecosystem.
Thanks for educating noobs like me.
you've got very useful content that is so informative to steemians, thank you for helping and sharing your knowledge @bitgeek, following you ;-)
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