What is Steem (STEEM)?

TLDR Steem (STEEM) is a blockchain platform designed to reward content creators and curators through a decentralized social media model, where users earn cryptocurrency for contributing value to the network.

1. Incentivized Social Platform – Users earn STEEM tokens by posting, commenting, or curating content, flipping traditional social media’s ad-revenue model.
2. Delegated Proof-of-Stake (DPoS) – Uses a fast, scalable consensus mechanism where stakeholders vote on content and validate transactions.
3. Forked Legacy – Originated as a pioneer in SocialFi but faced a community split in 2020, leading to the Hive blockchain fork.

Deep Dive

1. Purpose & Value Proposition

Steem aims to decentralize social media by directly rewarding users for their contributions. Unlike platforms where profits flow to shareholders, Steem redistributes value to creators and curators via its native token, STEEM. This model incentivizes high-quality content and active participation, with rewards distributed algorithmically based on community voting. The first app built on Steem, Steemit, became a hub for crypto discussions and long-form content during its 2016–2017 peak (CoinMarketCap).

2. Technology & Architecture

Steem employs Delegated Proof-of-Stake (DPoS), enabling 3-second transaction times and fee-less transactions. Users stake STEEM to gain “Steem Power,” which determines voting influence on content and governance. The blockchain also introduced Smart Media Tokens (SMTs), allowing developers to create custom tokens for apps built on Steem. This architecture prioritizes scalability, handling more daily transactions than Bitcoin or Ethereum at its height (Steem).

3. Key Differentiators

Steem pioneered the “Write-to-Earn” concept in crypto, predating modern SocialFi trends. However, its reliance on large stakeholders (“whales”) for content curation led to centralization critiques. A 2020 acquisition by Justin Sun triggered a community revolt and the Hive fork, splitting its user base. Today, Steem focuses on curated content and niche communities, while Hive retains a decentralized ethos (@jayplayco).

Conclusion

Steem is a blockchain experiment in democratizing social media rewards, blending crypto incentives with community governance. While its legacy is marked by innovation and conflict, it remains a case study in balancing decentralization with user incentives. Can its evolving curation mechanisms revive its role as a SocialFi leader?