What is the issuance price and issuance volume of STEEM coins?

STEEM's initial issuance price of $0.005 during its 2016 ICO, along with its capped issuance volume of 100,001,200 coins, contributed to its early accessibility and potential value appreciation.

Dec 01, 2024 at 06:36 am

What is STEEM Coin: Issuance Price, Issuance Volume, and Key Distinctions

STEEM, an acronym for "Social Media Evolved," is a blockchain-based platform that incentivizes users for creating and curating content. It was launched in 2016 as a decentralized social media platform built on the Proof-of-Stake (PoS) consensus mechanism.

STEEM coin is the native cryptocurrency of the STEEM blockchain, serving various purposes within its ecosystem. This comprehensive guide delves into the issuance price and issuance volume of STEEM coins, exploring their significance and implications.

1. Issuance Price of STEEM Coin

The initial issuance price of STEEM coin was **$0.005** during its Initial Coin Offering (ICO). The ICO took place from March 23 to April 3, 2016, and raised a total of $5.5 million. The ICO offered 1 billion STEEM tokens for sale, with 20% of the total supply reserved for the STEEM team and advisors.

The issuance price of a cryptocurrency during its ICO is crucial as it determines the initial market valuation of the project. The low issuance price of STEEM coin made it accessible to a wider range of early investors and contributors.

2. Issuance Volume of STEEM Coin

The total issuance volume of STEEM coin is limited to 100,001,200. Of this total supply, 20% was allocated to the STEEM team and advisors during the ICO, and the remaining 80% was distributed to early backers, contributors, and the community over time.

The capped supply of STEEM coins contributes to its perceived scarcity and potential value appreciation. By limiting the total number of coins in circulation, the blockchain ensures that the supply remains fixed, reducing inflationary pressures and potentially enhancing coin value over time.

3. Key Distinctions between STEEM and SBD

While STEEM coin is primarily used for governance and rewards on the STEEM blockchain, Steem Dollar (SBD) is another cryptocurrency within the STEEM ecosystem. Understanding the key distinctions between these two cryptocurrencies is essential.

• Utility: STEEM coin is primarily used for governance and voting on proposals within the STEEM community. It also serves as a reward for content creators and curators. SBD, on the other hand, is designed to be a stablecoin pegged to the US dollar.
• Stability: SBD aims to maintain a stable value against the US dollar through an algorithmic and community-managed mechanism. This stability makes it suitable for transactions and everyday use within the STEEM ecosystem. STEEM coin, on the other hand, is subject to market volatility and its value fluctuates based on supply and demand.
• Issuance: SBD has an uncapped supply and can be created or burned algorithmically to maintain its peg to the US dollar. STEEM coin, however, has a capped supply of 100,001,200.

These distinctions highlight the different roles played by STEEM coin and SBD within the STEEM blockchain ecosystem. STEEM coin serves as a governance token and reward mechanism, while SBD is designed to provide a stable medium of exchange and reduce transaction friction.