Steemit, the world’s leading decentralized social media network, has announced that on Tuesday, December 6, a hard fork will occur that would modify the Steem blockchain’s economic model.
The startup said that the changes to the economic model would benefit its existing community, and on board more short to mid-term investors. It believes that this would enhance the stability of Steem and allow for a significant influx of new users who were previously excluded from participating across a short or medium term.
“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. The hard fork request was initiated by the community, and once we reiterated the recommendations, we received an overwhelmingly positive response. The reason we built Steemit was to create not just a community where people could get rewarded for their time, creativity, attention and effort; but one where every user has a voice. The community has recommended improvements to the platform and we responded to help us all. 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”, CEO of Ned Scott said.
According to the official release, if the upgrade is adopted by the witnesses, the primary mechanism being altered is the inflation rate of the currency Steem. Of the 9.5% annual instantaneous inflation, Steem Power holders will receive 15%, 10% will be allocated to witnesses and miners, and 75% will be given to authors and content creators.
In addition, traders and investors of the popular cryptocurrency will now have their Steem Power holding requirements reduced from an average of one year, to an average of one and a half months.
“Steemit’s value and growth has been phenomenal, but it was hindered by a reliance on long term participants. 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%”, Scott added.
Steemit explained that there will be no change to the functionality of its website, Steem Backed Dollars or Steem Power, nor will there be a change in the powering down schedule or rate of the Steemit founders and developers. According to CoinMarketCap, Steem is currently among the top 10 cryptocurrencies with a market cap of over $35 million.
