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Overview
Steemit is a decentralized blogging platform for content creators. The token created to reward every user are STEEM and SBD. But how does this work? The project was built using a proof of brain. The aim and objectives of creating the platform is to have a decentralized system where users can blog without censorship. The proof of brain happens to be the basic thing that the community value and that has been what the system is built on. Create good and original content, not a plagiarized one, add value to the entire ecosystem with good content, and be rewarded via vote. This is why the steemit platform uses the concept of the POB
Question 1
What is STU? What is the break-up of STU? Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout? (Screenshot required)
STU means steem token unit. This name was coined from the fact that there are two basic tokens used to reward content creators (steem, and sbd). Even if it comes in combination with SP, it's still the two tokens. The developers made the POB concept to dish out rewards from the pool. When you post good content, you get curated, and payout drops in 7 days. These actions make it possible for the blockchain to spit some tokens from the pool as a form of compensation for activities carried out on the platform. So we can see it's a brainy work
Author reward
Content creators are also referred to as authors. If you create content and post, you are the author of that post. So any reward that comes from it to you is the author reward. The reward settings come in 3 ways
50% SBD, 50% SP (That's the default setting)
100% powerup (When you set 100% power up, all the rewards would come in SP and be automatically powered and added to your steem power)
Decline payout (When you decline a payout, it means you don't want to get anything from the reward pool. Even if the post has $500 votes, it would go back to the pool when the 7 days window set for payout reaches, and no dime would enter your account because you've declined the payout. This will be redistributed as reward to content creators)
Curator reward
When you post, and you see some $ on your post, it means some people have taken their time to appreciate your work with an upvote. So anyone that votes your content is the curator and they are entitled to 50% of the reward on your post which would be shared accordingly among the curators. Note that the curator reward is always in SP
break-up of STU(author and curation reward)
As earlier said, the reward system made it possible for both the curator and the author to benefit from the reward pool, which is shared 50/50, and as for the author reward, the USD does not affect it in any way, because the first 25% is purely paid in SBD, while the SP is the one that is equivalent to USD as it's paid in steem power. So, let's see how the breakup works (steem and SBD). As for the curation reward, it's purely paid in SP which is steem locked up, and it's equivalent to USD
Let's see some examples
ckole made a post and set it as 50%SBD, 50%SP. It means he's gonna get 50% of the author curation reward (STU). Also, the curator would get 50% Sp as his/her reward
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post payout = $12.12
Author = $6.06
Curator = $6.05
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100% SBD print rate is put into consideration as the calculation proceeds.
How much SBD and SP were generated from the authors' payout?
Since the author reward is $6.06, and 50% is paid in SBD, we have
6.06/2 = 3.03
So the 50% of the author payout in SBD = 3.03 SBD
To calculate the SP generated by the author, we have 50% of the author payout in USD worth of steem = 50% of the author payout in USD worth of steem/ the price feed of steem as at when the post paid out
steem feed price as at this period was $0.5408
So 3.03/$0.5408 = 5.6028 SP
Therefore, the SP generated by the author in USD worth of steem is 5.6028 SP
For curator reward, let's see how many SP is generated***
The curator's share of the overall payout is 50%, which is from the image $6.05
Now since it's all paid in SP, we divide by the steem feed price which is $0.5408
So, we have $6.05/$0.5408 = 11.587 SP
Question 2
Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org
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screenshot from Github
The reputation score is one of the criteria that measures loyalty on the steemit platform. We have the default rep score which is 25, but it can go below 25, even to the level of -1 or lower if saddled with a heavy downvote. Reputation score increases the more it receives upvotes and this depends on the size and weight of a vote and the steem power. So the upvote doesn't only give a reward to a post but also affects the reputation score. On the other hand, the downvote also doesn't only redistribute the reward to the pool, it reduces the reputation score based on how heavy the downvote is and the size of SP
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Some things to put into consideration is that,
If the curator's rep is lower than the author rep, any vote given would not in any way have an effect on the author's rep, rather, he would only receive the author reward, and conversely (if it's a downvote, the reward would be returned to the pool)
Upvote and downvote only have an effect on the reputation only if the curator's rep score is higher than the author's rep score. So if a user with a higher rep upvotes a post, there would be an effect on the reputation score of the author and vice versa.
There's always a mathematical calculation that every logical setting must respect, and in the case of steemit reputation, a log formula was derived to calculate the reputation score
Rep= (Log10(Raw Reputation Score)-9) * 9)+25
This is the formula for calculating the reputation score. Here, the only thing missing is the Raw reputation score and we can get it from [steemd.com](
https://steemd.com/@ckole). You can change the username
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We can now use the raw reputation score to calculate my reputation.
The raw reputation score = 64,498,488,543,062
Substituting the raw rep score into the formula
Rep= (Log10(Raw Reputation Score)-9) * 9)+25
Rep= (Log10(64,498,488,543,062)-9) * 9)+25
Rep = (13.8095495375- 9 )* 9) + 25
Rep =( 4.8095495375* 9 ) + 25
Rep =43.2859458375 + 25 = 68.285
So from the calculation, my rep score is 68.285, but according to the tools I used to check, the first one gave an exact figure while the other one approximated it to 68.3, which is still reasonable. All in all, both tolls were able to show it rightly
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steemworld
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steemd
Any user having a raw reputation between 1,000,000,000 and 1,291,549,664 would have a reputation of 25 which is the steemit default settings. Any one that falls between 1,291,549,665 and 1,668,100,536 would have a reputation score of 26. Raw rep score of 1,000,000,000,000,000 and 10,000,000,000,000,000 would have a rep score of 79 and 88 respectively, so on. Check the image below
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My design
Question 3
What percentage(of the Post Payout) was generated as liquid rewards(SBD) from your last Post in terms of USD equivalent? Explain how the rise of SBD has shifted the supply dynamics? As per your last post payout calculate the ratio of Author: Curator Reward in terms of USD equivalent
The author's STU payout as explained earlier in question 1 is $6.06
STU (SBD) Percentage Payout
From the Calculations in question 1, the 50% of the author payout (25% in SBD) = 3.03 SBD, so to get the value in USD, we have
3.03 sbd multiplied by sbd price at that period ($7.36)
3.03 sbd x $7.36 = $22.3008
Therefore, 50% of the author payout (25% SBD in USD) = $22.3008
From the calculation to get the authors 25% reward in SP, where steem feed price as at this period was $0.5408,
3.03/$0.5408 = 5.6028 SP
So, the authors 25% reward of SP in USD = 5.6028 SP X 0.5408 = $3.02999424
The curators 50% reward in USD = $6.05/ $0.5408 = $11.18713017751 sp
The curators 50% reward in USD = 11.18713017751 sp x 0.5408 = $6.05
So we need to calculate the total payout in USD by adding 50% of the author payout (25% SBD in USD) = $22.3008, the authors 25% reward of SP in USD = 5.6028 SP X 0.5408 = $3.02999424, and The curators 50% reward in USD = 11.18713017751 sp x 0.5408 = $6.05
The total payout in USD (author and curator) = $22.3008 + $3.02999424 + $6.05 = $31.38079424
So to get the percentage(of the Post Payout) that was generated as liquid rewards(SBD) from my last Post in terms of USD equivalent, we have
SBD paid out in USD divided by the total payout in USD multiplied by 100
Let
SBD paid out in USD = m = $22.3008
total payout in USD = n = $31.38079424
percentage = 100
We have m / n x 100
$22.3008 / $31.38079424 x 100
0.7106512292 x 100 = 71.065
Therefore, the percentage(of the Post Payout) that was generated as liquid rewards(SBD) from my last Post in terms of USD equivalent = 71.065%
Explain how the rise of SBD has shifted the supply dynamics
The aim and objectives behind the creation of SBD is for stability. This means the SBD was brought into the system to checkmate the debt-to-ownership ratio. The reward system is 50/50, and to date, the SBD is pegged to a dollar as designed from inception. But the value of SBD has surpassed one dollar and currently ranges between $6 and $7 even above sometimes. And what would be the effect? More steem would be printed, because the 50/50 ratio has changed drastically
From my post payout (author), it's obvious that the 50/50 distribution selected when the post was initiated wasn't respected because of the price of SBD at the point of payout. 25% of my reward as an author was supposed to be in liquid form, and the other in SP, but instead, the percentage of what I got in a liquid form was above board (71.065%, which means only 28.935% of the payout was locked as SP). So now, if I do a little calculation by subtracting 71.065 from 28.935, it means there's a difference of 42.13% between normal settings, and this is not healthy for steem. More steem is printed as the price of SBD soars, and the more users sell off steem in the market, the more the price is affected
As per your last post payout calculate the ratio of Author: Curator Reward in terms of USD equivalent
We would have to take some variables from the past calculations to get the author and curator post payout ratio.
The total payout in USD (author and curator) = $31.38079424
50% of the author payout (25% SBD in USD) = $22.3008
the authors 25% reward of SP in USD = $3.02999424
$22.3008 + $3.02999424 = $25.33079424
The total author payout in USD = $25.33079424
For the curator,
The curators 50% reward in USD = 11.18713017751 sp x 0.5408 = $6.05
The total curator payout in USD = $6.05
So to calculate the author, curator ratio, let's see the formula for both
Author = The total author payout / the total payout for (author and curator)
Curator = The total curator payout / the total payout for (author and curator)
Now, let's go there
Author = $25.33079424 / $31.38079424 = 0.8072
Author ratio = 0.8072
Curator = $6.05 / $31.38079424 = 0.1927
curator ratio = 0.1927
SO as per my last post payout, the ratio of Author: Curator Reward in terms of USD equivalent = 0.8072 : 0.1927
If we add these decimals together, we get approximately 1, which is 100%. So if we multiply them by 100, we would get the percentage for each
Author = 0.8072 x 100 = 80.72%
Curator = 0.1927 x 100 = 19.27%
But what we are calculating is the ratio which is = 0.8072 : 0.1927
Question 4
Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM
From the steem white paper
A rapid change in the value of STEEM can dramatically change the debt-to-ownership ratio
That's not all. There's more
The blockchain prevents the debt-to-ownership ratio from getting too high, by reducing the amount of STEEM
awarded through SBD conversions if the debt level were to exceed 10%
From this, it's very clear that when the price of SBD gets going higher, it would definitely affect the price of steem and the debt to ownership ratio would dramatically increase, which can affect the stability of the token. Now, there has been a way of reducing/preventing the debt to ownership ratio as stated in the white paper and that's through reducing the amount of steem given to the user during conversion. That's pretty cool. However, the
#club5050 is a very nice initiate that would help to buttress the already designed mechanism to prevent the debt level to exceed 10%. Let's see this from the same steem white paper
When a post receives a payout it takes the form of 50% SBD and 50% SP. The Steem Power give the user
increased voting and transaction power while the SBD gives the user an immediate benefit in a stable
currency.
This shows that SBD is meant to be a stable coin
So I think this initiative would reduce the debt level because more steem printed would be locked as SP and in a real sense, we can say they are still in the pool because they are not liquid, though can't be printed out to another person but the sole owner
As calculated in various questions far above, we can see that the ratio of SBD payout (25%) of the 50% STU is more than 70%. That's fucking huge compared to the SP payout of less than 30%. With the
#club5050, there would be a kind of checkmate. The 50/50 mechanism designed with SBD to a dollar will start closing gaps gradually as more steem is locked as SP from the payout that is supposed to be in circulation
From my past post payout where I got 3.03SBD if the
#club5050 is put into consideration, it means I would only get half of it as liquid and the other would drop as SP, meaning I've saved 35% of steem from circulating hence returned back to the pool and locked as SP
So with this, the supply of steem would reduce because there would be no much of it in the market, and this would make the price increase as people keep demanding for it, hence, becomes a scarce commodity
Question 5
Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples
I would answer this one after the other
Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep
If a user with a lower reputation upvote you, surely, it would affect your payout positively because steem power is not tied to reputation, so also the amount of steem and SBD in the user's wallet. A person can have a rep score of 25 with 1,000,000,000 Sp, and if he upvotes you, the reward is imminent, and the upvote would as well have an effect on your reputation score. I'm using my account as an example to carry out an upvote on an account that has a higher reputation than mine. Here's the image below
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Before upvote
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After upvote
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Proof of vote fromsteemd
From the two images above, we can be certain that a vote from a user with a lower reputation (68) like me could upvote steemitblog (76), and it reflected. Before the upvote, the reward on the post was $11.93 with 51 upvote count, but after I cast my vote, the reward was added with $0.02 and became $11.95 with 52 upvotes count. We were able to see the vote because I have a little power (SP) that can vote some cents, but it's not possible to see the effect it has on the reputation, however, it does even if it's in a micro way. So, the point line is that a vote from a user having a lower reputation would surely affect the payout and increase rep no matter how small
If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples
Just as the upvote of a user with a lower reputation affects the payout of another user with a higher reputation, so also does a downvote affects the payout. Every downvote means disagreement and no one is excluded from disagreeing with content that is of poor quality. Also, a user can plagiarize and if the downvote effect is limited to a certain reputation, it means there's no equal right when it comes to the judgment of quality content on the platform, so the down from a user with a lower rep would equally remove the vote (according to voting weight and size of SP) and send it back to the pool, which means it has an effect on the payout
Conversely, the downvote, even though removes votes from a user with a higher rep, would have no single effect on the reputation. Only a user with a higher rep can both remove reward via downvote and the rep of the user with a lower rep would be affected as well
Conclusion
The reward system on steemit that was set at 50/50 has changed dramatically due to the increase in the price of SBD, which would have an effect on the value of steem. However, the recent initiative called
#club5050 would help to gradually balance the system. There's always a way out of any problem and I believe, more solutions would keep flapping
As per the reputation score, it's interesting to know that there's a raw rep with many digits, that can be used to calculate the actual reputation score using the log formula. With a low rep, users can cast votes (upvote or downvote) that would affect the payout of a user with a higher rep, but in the case of a downvote, the rep score would not be affected. All these are a takeaway. With more understanding of the STU, I would say I appreciate prof
@sapwood for going deeper into this. It has really widened my horizon about reward distribution and other things about the steemit ecosystem. Thanks a lot
This is ckole the laughing gas
One love
CC: @sapwood
I used the club5050 tag in the first place, and when I realized the rules, I tried to remove it, but it wasn't editable. I will follow the rules and adhere to them.
Ref : All images are screenshots from my PC and the designs are my work.