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RE: Steem User Engagement is up over 300%

in #steem7 years ago

There are two numbers - the "circulating supply" which is 233m and the "total supply" which is around 250m. My understanding is that the difference between these two numbers is the cash held by people within or related to the company. Its explained (to a much higher degree) by @dantheman in the below article: https://steemit.com/steem/@dantheman/how-to-calculate-the-market-capitalization-of-steem

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Dan explained below. Steem is held to validate the value of all SBD present, as it is pegged to $1 of steem. The higher the value of steem, the less is required to maintain that backing of SBD, so the total supply is reduced.

Its fairly interesting when you dig into it.. According to @dantheman "Steem Dollars are convertible to STEEM at the current price of STEEM. This means that all Steem Dollars could be converted to “common stock” in less than one week which in turn would instantly adjust the market capitalization of Steem."[https://steemit.com/steem/@dantheman/how-to-calculate-the-market-capitalization-of-steem]