Steemit, a blockchain initiative that centers on monetizing social media locales, has given specifics of an upcoming code update that will usher in enormous financial changes.
Revealed on Wednesday, the steem blockchain will experience its 21st hard fork on August 27 – one that will develop in a new Worker Proposal System pointed to permit the blockchain to “fund its own development.”
The new framework – set up as a decentralized independent organization, or DAO – will permit Steem clients to publicly propose work they are willing to do in return for payment within the project’s native cryptocurrency, steem dollars (SBD). The Steem.DAO will give way for the platform’s clients to vote on recommendations, weighted by their stake within the platform.
Winning proposals will then be funded automatically through the blockchain. Steemit gauges the DAO will disseminate from $1.5 million to $2 million per year.
Steemit stated its DAO is comparable to the fizzled Ethereum DAO – which was hacked for $60 million in 2016 because of a code bug – but underscored the Steem Proposal System “has none of the security vulnerabilities of the original DAO thanks to Steem’s application-specificity.”
Steemit senior blockchain engineer Michael Vandeberg said the concept was proposed and eventually created by steem community member Blocktrades.
“This is a big step forward in the development of Steem. We look forward to more partnerships between Steemit and our community. The Steem Proposal System will help make that a reality,” Vandeberg stated.
Established in 2016, the initiative says it has already disseminated more than $100 million in cryptocurrency rewards and claims to be “the most successful decentralized reward system within the world.”
Steemit has not been without its issues, however. Last November, the company laid off nearly 70 percent of its staff, citing the prolonged crypto winter. Steemit CEO and founder Ned Scott said at the time:
“There’s nothing that I want more now than to survive, to keep steemit.com operating, and keep the mission alive, to make great communities.”