Why our 100% Upvote Worth dropped by 40% in SBD?
What is happening to my Upvote Worth? Shall I panic?
I guess you have recently noticed that your upvotes do not give as much SBD as 1 week ago.
What happened?
Is it related to Steem price?
Is it the Reward Pool in depletion?
Not really!
After experimenting the reward pool and how it works yesterday, today I have made further analysis and calculations.
Here we go from the basics:
How much money are there in the reward pool?
image source
I clearly defined this in my yesterday post but basically, you can see it from STEEMD and at the time I write this post it is 723 480 STEEM and it is increasing with a rate of 1,73 STEEM for every 3 seconds.
OK, reward pool in increasing but how much money will be taken from the reward pool?
At any time, the amount of claimed rewards are defined and also this changes every 3 seconds as people claim rewards.
So there is a direct proportion with reward pool and claimed rewards.
The claimed rewards are determined in VESTS.
So at the moment there are 438 quatrillon vests of claimed rewards
This means, for each vest claimed ( yes you normally give vest when you upvote...) there is a certain correspondance for STEEM.
Reward Balance / Recent Claims
From equation, this can be calculated to be 0,00000000165 Steem / VEST
Come to the point, what happened to my upvote worth?
We all have some VEST in our balance.
This can be seen from https://steemd.com/@username ( take care, this is MVests )
For me, I have
1 055 436 720 781 VESTS
but I have delegated
102 170 000 000 VESTS
so to calculate my VESTS that gives me upvote strength, I have to substract them.
Formula is :
VESTING SHARES - DELEGATED VESTING SHARES + RECEIVED VESTING SHARES
I calculate it to be 953.266.720.781 VESTS.
We have previously calculated how much steem can be taken from reward pool per vest and it was 0,00000000165 Steem / VEST
Here comes my upvote power : 953.266.720.781 VESTS x 0,00000000165 Steem / VEST = 1,573 STEEM.
When we upvote at 100%, we are using %2 of this power so we do again a calculation.
1,573 STEEM x 0,02 = 0,0315 STEEM.
This number is determined by the reward pool, how much claims there are and your vesting shares.
This value was probably like this also 2 weeks ago, but our upvote worth was higher.
Feed-Price factor
When Steem is converted to SBD, the exchange isn't done according to market values but an average value determined by Steemit(?)
This point is still misty for me but I am determined to solve it.
Currently, according to Steemit, the exchange rate is 1 STEEM = 1,974 SBD
Unrealistic but true...
So my current upvote worth is : 0,0315 x 1,974= 0,0621 SBD.
What happened is, Steemit changed recently this Feed Price Factor.
Before, the feed factor was approximately 3,4 SBD / STEEM and my upvote was worth 0,0315 x 3,4 = 0,107 SBD.
Conclusion
Don't worry, reward pool is not depleted, it is only adjustment of Steemit as a result of how they see STEEM/SBD convertion rate.
The impact is, now your upvotes give less SBD but more SP.
Keep upvoting.
Stay Positive.
FD.
Edit : Formulas put altogether as recommended by @salty-mcgriddles.
Calculate Steem Reward per Vest :
Steem_Reward_Per_Vest=Reward Balance / Recent Claims
take data from :https://steemd.com
Calculate your Active Vesting Shares
Active_Vesting_Shares = (VESTING SHARES - DELEGATED VESTING SHARES + RECEIVED VESTING SHARES) x 1,000,000
take data from :https://steemd.com/@username
* Find your %100 Voting Power in Steem Units
Voting_Power_Steem(%100) = (Steem_Reward_Per_Vest x Active_Vesting_Shares)x 0.02
* Find your %100 Voting Power in SBD Units
Voting_Power_SBD(%100) = Voting_Power_Steem(%100) x FEED_PRICE ( Base )
take data from :https://steemd.com
Thanks! This really clarified things for me. The equations are the best part. Could you add a section at the end that just outlines the different calculations. It's difficult to see them altogether.
I will edit this post for this. Good idea. Thank you @salty-mcgriddles.
So essentially the algo changed to give more SP than SBD is my take away. This doesn't make a lot of sense to me economically because by producing less SBD won't that increase the price of each SBD and decrease the price of Steem? This seems very counterproductive to the idea that SBD is supposed to be relatively equal to 1 USD. Maybe I'm missing something....
Unless there are also other things in the works we don't know about . . .
If nothing else is also going to be changed, then this was probably to reduce liquidity a bit and reduce spam content at the extremes of SP, by those with very little SP and those with very much SP compared to the most common users of Steemit.
It appears that there is concern with the falling price of SBD and the hope appears to be sure it keeps at least at the $1 peg - https://steemit.com/witness-category/@yabapmatt/witness-update-sbds-meetups-and-more
Sounds logical... this was also my first idea but i found some documents and it seems there is a formulation to calculate and adjust the feed-rate.
So I guess and hope, it is not decided with feeling.
I think the feeling comes from how witnesses adjust their feed-rate. The feed rate determines how the system will adjust the calculations of SBD/STEEM.
Steem/SBD conversion is still far from market reality.
Current conversion rate is close to 1.
If this rate is used, our upvotes would give half of SBD of todays value.
I found some documents on how this feed rate is adjusted and I am studying these...
FD.
Your Every post is like a brainstorming session. I get to learn a lot from this. Guru @firedream
I am far from a Guru...I am just curious. I was a kid who cracked all the toys to understand how it works :)
Curiosity!!! Detected.
Good stuff. You know, calculating market values today is kinda analogous to how mariners of old would navigate with stars. LOL. Seriously though, I bet knowing what the steem value is on a given day, and how much vote was given, you could calculate what a users's SP was at any given moment in history. That's just like using star charts ^_^
And thanks to those star charts we are now sending Tesla cars to Mars :)
FD.
Positivity is for protons. I'm an neutron.
Free of charge :)
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by firedream from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.
Sneaky Ninja Attack! You have just been defended with a 4.57% upvote!
I was summoned by madpuppy. I have done their bidding and now I will vanish…
woosh
P.S. If you or anyone you know has been a victim of @grumpycat please know that he has been harming people throughout Sōsharumedia (ソーシャルメディア). Stealing the service that I (and other bots) have provided them and hiding behind a facade of stopping bid bot abuse which he clearly has no interest in.
Sneaky Ninja is a very responsible bot, working directly with steemcleaners, actively pursuing spam and abuse on our platform. If you would like to see what steps Sneaky Ninja has taken to fight bid bot abuse see this post and this post. Also know that I am working daily on other solutions.
If you would like to know my personal take on bid bot abuse and why I do not agree with the 3.5 day rule, see this post
Grumpycat is a villain that must be stopped to protect our freedoms here on steemit!
There is a resistance that has formed to counter his tyranny.
If you would like to take an active role in stopping this menace and helping other victims like yourself...
Learn More Here
I have also summoned my love, Kusari to offer some limited help to victims like you.
See Here