Fantastic. Thanks for the reply! And for the $1!!
My understanding was people would have to either buy and/or earn STEEM in order to vote. That makes sense.
So, I just upvoted your reply above and it gave you (a whopping) 0.04. You're saying it doesn't come out of my account balance, so where did it come from?
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There is a daily reward pool of created steem. The more Steem Power you have, the more of that reward pool is allocated to you to give out.
Think of it like mining bitcoin. Miners use their processing power to mine blocks of bitcoin. The GPU processing power is the Proof of Work. In the case of Steemit, we have Witnesses who are running servers that process the blocks for us, and by creating content that gets rewarded by upvotes, the token is distributed, like a mining pool. So content creation is the proof of work for the Steem Blockchain.
I'm sure someone can explain it much better than I can, but that's what I can offer you. Your upvote is worth $0.04 because it looks like you bought some Steem and imported it in. Most people start with just 27 Steem Power loaned to them from the platform and slowly earn their way up. By having over 300 Steem Power you are actually probably in the top 20,000 or so out of 400,000 accounts. hehehe
Power user! ;-)
Livin' large baby!
Awesome. Appreciate all the info!