Steem Blockchain: STU, Reputation, Author/Curator Ratio, etc.- Steemit Crypto Academy- S4W7- Homework Post for @sapwood

It's been another great week learning under the tutelage of Prof @sapwood. I have been really blessed.

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)

Steem Token Unit, STU for short is the unit which determines the total post payout of a particular post. It incorporates both the SBD and Steem payout ratio in USD of a particular post for both the content creator (author) and the quality content rewarder (curator).

In every post created by an author and upvoted by the curator, the payout of that very post is evenly distributed amongst both the author and the curators. This payout is in the ratio 50:50, meaning that the author gets 50% of the payout and the curator gets 50% of the payout.

But then, in a post, the author can chose to set how the 50% author's reward can be claimed. It could either be in;

• 50% as SBD and 50% as SP
• 100% which will be directly claimed as SP
• Decline payout

The 50% SBD / 50% simply means author's reward will be halved into two, one half to be redeemed as SBD and the other half to be redeemed as SP.

Power up 100% simply means the author's reward willed be vested as Steem Power.

Decline payout simply means the author doesn't want any reward from the post. It means all the author's reward will return back to the reward pool.

But by default, every post is configured to pay out as 50% SBD / 50% SP for the author. And for the curator, the reward is constantly always vested in SP.

Below is a more practical example of how to calculate the STU for this my previous post.

From the screenshot above, STU for that post was $54.69 from which the author's reward was $27.36 and the curators' reward was $27.33.

Author's reward will be;

$27.36 which is 50% of the post payout (STU) = 27.36 / 2 = 13.68 SBD

As at that payout time, Steem price was $0.602 so to determine the SP of the author, I divide the amount SBD of the of post payout by the price of Steem.

13.68/0.602 = 22.72 SP

This means that the author's reward was 13.68 SBD and 22.72 SP.

Steemdb.io

This breakdown is so because the print rate of SBD is 100% with a dept ratio not exceeding 9%. Should it be that the dept ratio exceeded 9% but less than 10%, then the author would received SBD, SP and Steem as the author's reward.

I can remember some time last year when author's reward was always accompanied with Steem. I was always wondering why it is so, but I now understand why.

Curators' reward is the other 50% of the post payout (STU) always vested in SP.

So curators' reward = 27.33/0.602

Curators' reward= 45.40 SP

This reward will now be distributed amongst all the persons that upvoted that post depending on the percentage of upvote the curator unleashed on that post.

Question 2

An Indication of the Raw reputation score of my Steem Account and How I calculated my Reputation? With a Cross-check of the Reputation score displayed in Steemworld.org.

Raw reputation score of my steem account can be found on steemd

From the screenshot above my raw reputation score is 33,205,718,757,140

To calculate my actual reputation score, I use the formula

Reputation Score = Log[(raw reputation score) - 9 x 9] + 25

Reputation Score = Log(33,205,718,757,140)-9 x 9 + 25

[(13.5212)-9 x 9] + 25

[(4.521)9] + 25

40.689 + 25 = 65.690

Therefore, my reputation score is 65.690.

Here is a confirmation of my reputation score from Steemworld

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?

From the screenshot above, my last post payout was $9.52 and author's reward is $4.77 and curators' reward = $4.

[Coinmarketcap](https://coinmarketcap.com/currencies/steem-dollars/)

[Coinmarketcap](https://coinmarketcap.com/currencies/steem/)

Author's Reward in SBD = 2.385 SBD which will be $16.695 (SBD being $7 for 1)

Author's Reward in SP = 2.385/0.602

3.96 SP in USD (steem being $0.602 each)

Total of Author's reward = 16.965 + 3.96

Total of author's reward = $20.925

Curators' Reward = 4.75/0.602

Curators' Reward = $7.89

Total post payout in USD = 20.93 + 7.89 = $28.82

Percentage Liquid Reward (SBD) from total payout = 20.93 / 28.82 = 72.62%

The rise of SBD has shifted the supply dynamics as a result of blockchain variance.

SBD was supposed to be a stable coin which is pegged to $1 but in the external market, SBD has broken the $1 peg boundary and as a result of this variance, the supply dynamics has been affected and as such, the author:curator reward distribution is as well affected.

From the example above,

Total of author's reward = $20.925

Percentage of author's reward in USD = (20.93 / $28.82) x 100 = 72.62%

Curators' Reward = $7.89

Percentage of curators reward = (7.89/28.82) x 100 = 27.38%

Author:Curator Percentage Reward Ratio = (72.62 : 27.38)%

Question 4

(4) Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favour of STEEM?

The #club5050 initiative is actually one of the ideal initiative to help stabilize the Steem economy and strike a balance between the supply and demand dynamics of the Steem economy as well.

From the previous question, authors get a much greater percentage of the payout reward than the curators who are the investors and that is really not good for the economy of the blockchain.

So an initiative like the #club5050 will propel authors to also become investors and with that, there will be a paradigm shift in the supply and demand of steem and that shift is directly proportional to the increase in price of Steem.

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?

https://steemworld.org/@booming04

If a user let's say booming04 who currently has a voting weight of $35.94 and a reputation of 25 upvotes my post, (myself having a reputation of 65), the upvote of booming04 will increase both my post payout and my reputation.

But if booming04 decides to downvote my post, it will only decrease my post payout but not my reputation because my reputation score being 65 is higher than booming04's reputation score which is 25.

https://steemworld.org/@steemitblog

Conversely, if a user like steemitblog currently having a voting weight of $1.14 a reputation of 76 upvotes my post, (myself having a reputation of 65) it will increase both my post payout and my reputation.

But if steem steemitblog decides to downvote my post, it will decrease both my reputation and my post payout because steemitblog has a reputation greater than mine.

This therefore means that for a post payout and reputation of the author to increase, a user with higher SP has to be the one to help do that by leaving an upvote on the author's post. But for reputation to decrease, only a user with higher reputation than the author can do that by leaving a downvote on the post.

Conclusion

STU is the post payout reward of a post made by an author. It uses the 100% SBD print rate to determine if a post should payout in SBD and SP alone or if it should payout in both SBD, Steem and SP.

Having learned that authors earn a pretty much higher percentage of the post payout than the curators', it is therefore pertinent for authors in the Steem blockchain to imbibe to the #club5050 initiative to help stabilize the economy of the steemit ecosystem.

Thank you Prof. @sapwood for this excellent lectures.