Steemit, a blockchain-based social media platform, announced that they will hard fork on Tuesday, December 6. The change in their economic model aims
Steemit, a blockchain-based social media platform, announced that they will hard fork on Tuesday, December 6. The change in their economic model aims to bring more long-term users and investors.
“With this hardfork the greatest portion of the community feels the ecosystem will be changing for the better and will now be more accessible to more people,” said Ned Scott, CEO of Steemit before Cryptocoinnews. He added that the it’s a response to the user community wishes. “We’ve always encouraged two-way dialogue with our user base and we feel that this will benefit all current and future users of Steemit”, concluded Scott.
Steemit is a relatively new company which uses blockchain technology to reward users who post, source and upvote popular content such as articles, commentary and images. Founded by Ned Scott and Daniel Larimer, the social platform is open to various contributors from all over the world.
The shareholders of social media companies like Reddit, Facebook and Twitter have earned billions of dollars from user-generated content. Unlike them, Steemit pays the users in cryptocurrencies. “Steem supports social media and online communities by returning much of its value to the people who provide contributions by rewarding them with virtual currency.”, states the Steem White Paper published on their website.
By changing their economic model, the Steem platform hopes to increase stability. They explain the decision in their press release quoted by Cryptocoinnews. “The new structure of Steem lowers the inflation rate and adopts a model much more similar to bitcoin, which encourages participants who don’t want to lock up their cryptocurrency value for long periods of time to have influence in the social network. While all Steem holders will have increased liquidity, the allocation of new Steem tokens to witnesses, content producers and creators won’t change; that figure still sits at 9.5%.”
The Steem cryptocurrency is the ninth largest according to Coinmarketcap. The website shows that Steem`s market cap accounts for $38,188,436 as of November 30.