|

Assalamualaikum

| - | ![IMG_20240402_195257.jpg](https://cdn.steemitimages.com/DQmQ1dhwqxqMgGpukCyF35WSt3or9yEPYLykZi2pxXzCdWz/IMG_20240402_195257.jpg) STEEM tokenomics is my today's topic to share withball of you and I would try my best to delve into the answer of all the question with my indepth analysis. ![20240402_194325_0000.png](https://cdn.steemitimages.com/DQmVkLLdbf8SxcopBdhu8FWMopiKCNFBGQjo53PHeHTSbkz/20240402_194325_0000.png) In start or initially STEEM token had a system of continuous token issuance so it means that at that time new tokens were produced in constant way. **Fixed supply model implementation as an alternative of token issuance** • After that this approach change and there was a fixed supply model which take its place and after the implementation of that model no new tokens were generated. This was the changes and alternations made in issuance of tokens that have direct impact at overall availability of STEEM in market. **Impact of fixed supply model** • After the implementation of fixed supply model number of tokens were remaining constant and were not changing so in this way demand of the token was increasing and this was scarcity of STEEM was also increasing. **STEEM token distribution evolution** With the passage of time STEEM token distribution have also evolved and others mechanism takes place of it. Mining was considered as primary method of token distribution in that initial times. After that it was expanded and other mechanism like staking and different social media activities takes place their place. **Impact of evolution of token distribution** When token distribution process changed from mining to staking and other social media activities then the impact which occur on the overall market and availability of STEEM tokens I am explaining in the following points; • Staking activities increase interest of users at steem blockchain as people started to invest in it by trusting on it so it increase the traffic and with the increasing traffic it increase its demand and reduce its supply. • Social media activities increase the overall engagement of the users at platform as well as increase participation which impact the supply and demand dynamics in a way that supply becomes reduced and demands increase. **_{Summarized relationship between STEEM token issuance and STEEM token distribution}** **STEEM token issuance** is basically defined as creation of for production of new STEEM tokens while **STEEM token distribution** is defined as allocation of STEEM tokens to its participants or users. **Simple relationship in token issuance and token distribution both have impacted availability of tokens into the overall market but one thing was common between both of them that they impact on supply and demand dynamics.** ![20240402_194514_0000.png](https://cdn.steemitimages.com/DQmR2rEXeC8PMrwqxMf3yPf7jKNQbCGDn44SzPYevH7tkjv/20240402_194514_0000.png) I think before analysing staking trends at STEEM blockchain this is important to know that what is the process of taking so **Staking is basically define as a process of lock up of your assets for supporting the operations and governance of network for a particular period of time** **High staking level impact on community participation and token stability** • If there is high level of staking then it means that people have strong trust and believe at the platform which leads to over all influence on increase community participation, as well as it would show that users have a lot of desire to actively participate in all dynamics at steem blockchain. • If I talk about increase level of participation of users then it leads to more stability of token because with more active participation of users and more active engagement of users in community and high level of trust of users demand of token would increase so its supply would reduce which food cause to bring a more stable token in market. **_{Practical example of staking from my personal account}** |![IMG_20240402_193224.jpg](https://cdn.steemitimages.com/DQmaDBR2nF7cjozZMKMduvGuwSJfohSFGwTwNjTZCA6RD9L/IMG_20240402_193224.jpg)|![IMG_20240402_193257.jpg](https://cdn.steemitimages.com/DQmbBNn8547oQMKorfhotwvTph11xdLqZCrEi42W9CE1YZm/IMG_20240402_193257.jpg) |-|-| I have strong believe and trust at STEEM that's why I never feel hesitated to participate in high level of taking and I have a strong urge to become a dolphin and I am near to my target and in this month I would be successful in becoming a dolphin Inshallah so my this contribution is making STEEM stronger and is also benefiting me personally by making me influential at steemit. **Low staking level impact on community participation and token stability** •If we see that there is a lack or decline in staking trends then it means that people are losing their confidence and trust in investing and staking at a particular platform or a particular blockchain like STEEM. so when people would lose trust and confidence then it would definitely cause are decline in overall community participation and community engagement of users. • When there would be lack in the community engagement and negative shift in sentiment then it would cause instability in the token by increase in the selling pressure and by reduction in the Network support by users. **_{Practical example of low staking level}** |![IMG_20240402_203117.jpg](https://cdn.steemitimages.com/DQmWKKoyNXzMst197AAHAMQfiSZ1TCJqNN59j2aqpTbL7Qz/IMG_20240402_203117.jpg)|![IMG_20240402_203054.jpg](https://cdn.steemitimages.com/DQmZrjny1PZuvTrzCL9AXuHzriEaY4CsgRsXEM6Ve4PKFs2/IMG_20240402_203054.jpg) |-|-| • If there is low staking level then it's not necessary for every time that there is lack of confidence or trust a user is expressing for a particular blockchain or platform as this is a unique example which is most recent I am sharing from steemit. • This is an example of a user @viajarparasanar who have broken the rules of steemit platform and raise voice in favour of AI use that it should be legally approved by steemit team and discourage steemit team rules and when multiple people which were dedicated steemians criticize him then he take it too much negative and power down his steemit account and in this way this is an example that how he power down and shown an example of low staking level. **Staking trends could be high and could be low so by monitoring them we can check the level of community involvement and sentiment of users and their impact on the stability of STEEM token in all these ways.For considering overall STEEM health staking trends are quite important to consider.** ![20240402_194615_0000.png](https://cdn.steemitimages.com/DQmRmVkQZbqonzanAWndW6qp4NJeJENmbCytCdk3m6bw44V/20240402_194615_0000.png) At STEEM blockchain there are different incentive mechanisms including proof of brain which shape the STEEM ecosystem,and there is also motivation and encouragement level for content creators and curators in following ways. **Proof of brain role in shaping STEEM ecosystem** **Proof of brain in simple words means at STEEM everyone have to use their brain for creation and production of their content about respective topics** • Proof of brain is shaping STEEM ecosystem by the promotion of most original most valuable and most popular content. • Content which meets the requirements of originality and quality are following the proof of brain and for that reason users are motivated in the form of STEEM tokens rewards by allocating them to hardworking users so by reward allocation proof of brain is making STEEM community more vibrant. • Proof of brain acts as an encouragement and motivation of users by rewarding them of their high quality content and engagement with others so in this way it brings more and more traffic at STEEM and shape STEEM ecosystem in this way. **_{Practical example of proof of brain in shaping STEEM ecosystem}** • For me proof of brain is like that , as I am producing original and quality content by utilizing my brain power and that's why I am also receiving rewards in the form of upvotes, positive comments and resteems and these all are acting as a motivation for me. • Due to this level of encouragement I am attracting more towards this platform and in this way when more people attract towards this platform then they contribute in shaping the platform in positive way **Content creators motivation** • Content creators are motivated when other users engage with them with positive comments then it develops a sense of motivation in content creators that they should improve the quality of their content day by day so that they come more influential and more recognised. • Content creators are rewarded in form of STEEM tokens so earning rewards acts like a motivation for users because they know that the more they would make their content quality and engagement qualities stronger with others ,the more they would have chances to earn rewards. **_{Practical example of content creators motivation}** ![IMG_20240402_210014.jpg](https://cdn.steemitimages.com/DQmckva6SzcveeztJKRKVyteYQ3fSAjToViFCXeuM3unt5i/IMG_20240402_210014.jpg) • Being a steemian I am striving hard daily to produce quality content at this platform and for this whatever notifications I received at daily basis in the form of upvotes ,comments and resteems act as a motivation for me as I have shared screenshot of my personal account notifications with you also. **Content curators motivation** **Curators are some specified users groups that are responsible for seeking for high quality and free from plegrism content and then to curate them with upvotes depending upon post quality** • Curators are incentivized in discovering and promoting the content which they considered exceptional by curating that exceptional content and make it more visible at platform. • Main source of motivation for curators is to earn curation rewards that they earn by voting on others posts. So in this way it is a great way of encouragement active participations in community and rewarding the individuals or users for the efforts that they are making truly. **_{Imaginery example of content curators}** • As I have not reached to a level of curator still that's why I cannot give you my personal and practical example but I can say that suppose if there is a curator who voted on someone's post and at the time of payout of that user half reward would be earned by curator which would be the curator reward for curator motivation. **All these incentive mechanisms are just like a positive feedback loop in which content creators, curators and all those who are using proof of brain at platform are motivated in different ways** ![20240402_194704_0000.png](https://cdn.steemitimages.com/DQmRrESK8pPFgQgNwtWrfbpTyASpBcNJjuGfu6dZDE6qWD7/20240402_194704_0000.png) There are multiple challenges which are relating to the reward distribution at STEEM I am explaining in the following points below; • There could be a possibility of unequal distribution of rewards while allocation of rewards to users of their quality content.So challange is to distribute equal rewards amount quality content creators at diverse platform. • While distributing rewards many times they are allocated to those users that are only here for the earning purpose and that are not focus on using proof of brain so it is challenging to approach those content creators that are more focused on the use of proof of brain. • While the distribution of rewards if subjective evaluation is taken then sometimes the content is preferred which is not actually of high quality and not actually more deserving so it becomes challenging in this way to search out for most valid comment. • While the distribution of rewards if there is improper allocation due to any kind of reason then it becomes challenging to maintain trust and transparency at the platform. • If before actual evaluation of content originality reward has been allocated to a user who has posted plagiarized content then it would be challenging to encourage real content creators that has used proof of brain in original way. • If distribution of rewards is insufficient for content creators and if they are thinking that reward which is allocated to them is not enough and not according to the efforts which they put in their content creation then it would becomes challenging for maintain interest and confidence of people at STEEM. **_{Influence of token distribution challanges at perception of market participants}** • If STEEM tokens would not be distributed in equal amount then it would create a sense of unfairness and discouragement among users so it would be the creation of negative sentiment for market participants in this way. • If users would only be present for earning purpose and they would not focus on proof of brain then it would cause to create a general perception in market participants that users at this particular blockchain are just gaming the system so it is also ultimately negative sentiment creation among market participants. • If distribution of reward would not be in transparent and fair way due to any reason then it would be create a state of confusion and loss of trust among market participants. • If there would be improper reward distribution takes place then it would enhance bots manipulation for manipulating the actual reward system so in this way it would affect original content creators in a negative way. • If reward distribution would not takes place in a sufficient or in effective way then it would cause lack of sustainability in the ecosystem for long term which can cause major damage for long term and cause hinderence ok attracting new investors. **There could be potential effects of these challenges in the form of decreasing the level of interest and trust both in users and decreasing the level of fairness and motivation which leads to decrease engagement level and decrease activity level of overall community and all these things are promotion of negative impact at overall ecosystem** ![20240402_194806_0000.png](https://cdn.steemitimages.com/DQmTPKmw5SfN6FQgJTqNprs1kwtrWgspseYgm6scrk2Gzab/20240402_194806_0000.png) **STEEM tokenomics understanding can also help investors in decision making for staking** • Investors by staking of their tokens are free to increase their influence at the platform depending upon the amount of tokens that they are staking and in this way they can also increase their voting power at the platform which alternately permits them to have greater say in governance decisions and in curation of content. • Through staking of tokens high curation rewards can be earned by investors which insentivise them to hold their tokens for long term and to show their maximum participation in further investment if they can. • Through staking investors tend to actively engage with platform in order to earn curation rewards and in this way it contributes to the success and growth of community and could be a source of attraction of more stakeholders and general users. • By staking investors can easily demonstrate the level of commitment that they have for platform so it could potentially impact value of STEEM they are holding in positive way. • Investors can play there role in elimination of risks that are associated with the price fluctuations when they earn rewards then they also significantly offset potential losses. **STEEM tokenomics understanding can also help investors in decision making for content creation** • Investors can make decision by understanding STEEM tokenomics model that they should create content of high quality because on basis of the engagement and popularity of their content rewards would be insentivized to them. • Investor can understand through STEEM tokenomics understanding that there is a fair distribution of reward among content creators depending upon their contributions as rewards are allocated to users on the base of consensus of community through voting. • Investors can seek help in decision making regarding content creation by understanding STEEM tokenomics that with constant creation of high quality content STEEM tokens can be accumulated with the passage of time and in this way more sustainable income stream they would be able to attain. • By understanding STEEM tokenomics investors can make decisions about community support that STEEM through its platform steemit is fostering supportive community in which content creators have an opportunity to receive feedback on the content which they created and collaboration opportunities and value and recognition for their content and it is all due to ultimately for their motivation. **STEEM tokenomics understanding is very important for investors especially when they want to manage rewards;** • A strategic staking could be a great way for managing rewards by investors because by a wise staking of tokens voting power and influence of investors would increase which would lead to higher rewards earning by them. • Investors can curate quality content and in this way make it more visible and contribute in promoting high quality content which would increase value of platform and become a potential way for attracting more users and not only general users but also investors at platform which would ultimately result in better rewards. • When investors would actively participate in the community in the form of leaving positive comments and votes then in this way they would make strong relationships and they would also receive reciprocal support in form of curation rewards and in this way their rewards boost up again. • Investors can easily adapt and change their strategies and can optimize their rewards when they would always remains stay informed about the important updates and alternations regarding the reward distribution algorithms. • Investors can learn many more by trying different approaches for management of rewards and then they receive strong learning from the outcomes after reward management and they renew and refine their techniques and strategies of reward distribution for more better and best outcomes. ***I want to invite here*** ***@saintkelvin*** ***@eliany*** ***@sduttaskitchen*** ***@irawandedy*** ***To participate 😊*** |

Have a blessed day

| - |