[Crypto projects](https://revain.org/projects/) › Steem

# Steem (STEEM): how it works, supply and reviews

## In short

- **Type**: Blockchain for social apps; Steemit is one app built on it.
- **Issuance**: Inflation started at 9.5% a year and falls by 0.5 percentage points a year until it reaches 0.95%.
- **Risks and caveats**: STEEM and SBD are not insured, and lost keys cannot be recovered.
- **Checked**: 1 November 2026

## Key facts

- **Ticker**: STEEM
- **Official site**: [steem.com](https://steem.com/)

Key facts checked on 1 November 2026 against official sources.

## What is Steem

Steem is a delegated proof-of-stake blockchain built for social apps: users earn STEEM-based rewards for posting and curating content. Steemit, the best-known app on it, is a separate product built on top of the chain.

## Network and consensus

| Parameter | Details |
|---|---|
| Type | Blockchain for social apps; Steemit is one app built on it. |
| Consensus | Delegated proof of stake: block producers (witnesses) are approved by STEEM stakeholders. |
| Block time | A new block every 3 seconds; 21 witnesses produce 21 blocks per 63-second round. |
| Technology | Built on Graphene technology, with witnesses instead of miners; proof-of-work mining has been removed. |
| Launched | Genesis block on 24 March 2016. |
| Fees | No transaction fees for sending STEEM or SBD; actions use bandwidth that depends on Steem Power. |
| Head block | Block 110,932,980 at 02:44:42 UTC on 1 November 2026 (public Steemit API node). |

## Supply and issuance

| Parameter | Details |
|---|---|
| Issuance | Inflation started at 9.5% a year and falls by 0.5 percentage points a year until it reaches 0.95%. |
| New-issuance split | Current chain parameters (official API, 1 November 2026): 65% of new STEEM to content rewards, 15% to Steem Power holders and 10% to the proposal fund; the steem.com FAQ says 10% goes to witnesses. |
| Tokens | Three tokens: STEEM (liquid), Steem Power (vested STEEM) and Steem Dollars (SBD). |

## What STEEM is used for

- STEEM is the liquid token; it can be powered up into Steem Power for voting influence and rewards.
- Steem Power is the vesting (staked) form of STEEM and sets a user's bandwidth and vote weight.
- SBD (Steem Dollars) is a token that seeks price stability to the US dollar and can be converted to STEEM.

## Who develops and governs Steem

- **Company**: steem.com is published by Steemit Inc.
- **Governance**: Witnesses (block producers) are elected by the community through stake-weighted votes.
- **Open source**: The chain code and the Steemit.com app are open source on GitHub.
- **Developer**: Core repository: steemit/steem on GitHub.

## History

| Date | Event |
|---|---|
| 24 March 2016 | The Steem genesis block is broadcast. |
| 4 July 2016 | The first rewards payout takes place. |
| 14 July 2016 | Steemit says a cyber attack compromised fewer than 260 accounts and that affected users will be reimbursed. |
| July 2018 | The chain stalls at block 23,847,548 because of an invalid transaction; a patch (v0.19.5) restores operation within hours. |
| 27 August 2019 | Hardfork 21 activates; about 45 minutes later the blockchain halts during automated validation, and block production resumes at 2:47 PM EST the same day. |
| 10 June 2020 | Steem 0.23.0 is released; it cuts the power-down period from 13 weeks to 4 weeks. |

## Security and audits

- STEEM and SBD balances are not insured; users are responsible for their own keys.
- Each account has separate owner, active, posting and memo keys with different authority levels.
- Lost passwords or keys cannot be recovered, per the steem.com FAQ.

## Security incidents

| Date | What happened | Source |
|---|---|---|
| 14 July 2016 | Hack: Steemit (the main Steem app) was hit by a cyber attack: fewer than 260 accounts were compromised and less than $85,000 worth of STEEM and SBD may have been stolen. The site was taken offline; Bittrex paused STEEM and SBD deposits and withdrawals. Funds returned: Steemit said compromised users would be completely reimbursed and that stolen STEEM or SBD would be fully refunded by Steemit. | [steemit.com](https://steemit.com/steemit/@steemitblog/important-security-announcement-steemit-ceo-ned-scott) |
| July 2018 | Network halt: The chain stalled at block 23,847,548 after a scheduled power-down from an invalid transaction could not be processed; transactions sent during the halt failed. A patch (v0.19.5) was deployed by most witnesses within a few hours. Steemit said accounts and tokens were not at risk. | [steemit.com](https://steemit.com/steem/@steemitblog/steem-blockchain-patch-issued) |
| 27 August 2019 | Network halt: About 45 minutes after Hardfork 21 activated, the blockchain halted during automated validation because of a bug; block production resumed at 2:47 PM EST the same day after a fix. | [steemit.com](https://steemit.com/hf21/@steemitblog/newsteem-is-live) |

Further incidents are reported by third parties (press, incident databases) but are not confirmed in the company’s own channels, so they are not listed here.

## Risks and caveats

- STEEM and SBD are not insured, and lost keys cannot be recovered.
- The sources record two halts (July 2018 and August 2019).
- SBD only seeks price stability to the US dollar; Steem does not describe it as backed by reserves.
- Block production depends on 21 scheduled witnesses chosen by stake-weighted voting.

## Official links

- Website: [steem.com](https://steem.com/)
- FAQ: [steem.com/faq](https://steem.com/faq)
- Docs: [developers.steem.io](https://developers.steem.io/)
- Source code: [github.com/steemit/steem](https://github.com/steemit/steem)
- Block explorer: [steemdb.io](https://steemdb.io/)
- Blog: [steemit.com/@steemitblog](https://steemit.com/@steemitblog)

## Questions and answers

**What is Steem?**

Steem is a delegated proof-of-stake blockchain for social apps that rewards users for posting and curating content. It has three tokens: STEEM, Steem Power and SBD.

**What is the difference between Steem and Steemit?**

Steem is the blockchain and cryptocurrency; Steemit is a social media app built on top of it.

**When did Steem launch?**

The Steem genesis block was broadcast on 24 March 2016, and the first rewards payout took place on 4 July 2016.

**Was Steemit hacked?**

Yes. On 14 July 2016 Steemit said fewer than 260 accounts were compromised and less than $85,000 in STEEM and SBD may have been stolen; it said affected users would be reimbursed.

**Does Steem charge transaction fees?**

No. Steem says sending STEEM or SBD has no transaction fee; actions use bandwidth that depends on Steem Power.

## Sources

- [Steem - Home](https://steem.com/)
- [Steem - About](https://steem.com/about)
- [Steem - FAQ](https://steem.com/faq)
- [Steem - Buying Steem tokens](https://steem.com/buying-steem-tokens)
- [steemit/steem on GitHub](https://github.com/steemit/steem)
- [steemit/steem releases](https://github.com/steemit/steem/releases)
- [Steemit - Important Security Announcement (14 July 2016)](https://steemit.com/steemit/@steemitblog/important-security-announcement-steemit-ceo-ned-scott)
- [Steemit - First Update to July 14 Security Announcement (15 July 2016)](https://steemit.com/steemit/@steemit3/first-update-to-july-14-security-announcement-from-steemit-ceo-ned-scott)
- [Steemit - Steem Blockchain Patch Issued (3 July 2018)](https://steemit.com/steem/@steemitblog/steem-blockchain-patch-issued)
- [Steemit - #NewSteem is Live (27 August 2019)](https://steemit.com/hf21/@steemitblog/newsteem-is-live)
- [SteemDB block explorer](https://steemdb.io/)

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Page updated: 2026-11-01

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Source: https://revain.org/projects/steem/