Steem
Crypto Overview
Overview
Steem is a blockchain-based social media platform that rewards content creators and curators with cryptocurrency tokens. The platform was launched in 2016 and operates through its native cryptocurrency STEEM.
Intended Utility
The primary purpose of STEEM is to serve as the native currency for the Steemit social media platform, where users can earn tokens for creating and curating content. The platform aims to create a decentralized content ecosystem where value flows directly between creators and consumers without intermediaries.
Actual Utility Assessment
The platform has seen declining usage since its peak in 2017-2018. Current data shows relatively low daily active users compared to traditional social media platforms. The developer activity has also decreased significantly since the controversial hard fork in 2020 when TRON acquired Steemit Inc.
Token Distribution and Governance
The initial distribution of STEEM tokens was problematic from a fairness perspective, with a significant portion allocated to early adopters and the founding team. The 2020 hard fork situation revealed centralization concerns when large exchanges used user deposits to vote in governance decisions.
Technical Implementation
The platform uses Delegated Proof of Stake (DPoS) consensus mechanism, which is permissible under Islamic finance principles as it involves actual ownership and network participation. The reward mechanism is based on content creation and curation, representing real value exchange rather than interest-based returns.
Crypto Impact
To assign a comfort level investing in Steem from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Steem.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.