Where do all the micro pennies go?

I tried to use the search function to answer this question, have read the white paper, have asked in steemchat and have been a Steemit user for over 6 months and have not seen this question. In saying all that I am sure there are posts out there with the answer, so sorry for the post.

The Question

If an author gets 10 or so votes from minnows that don't amount to a whole penny they don't get anything, but the voting power of those minnows must be more than 0, where does these micro pennies go?

Bitcoin can be subdivide to 0.00000001, Ether even smaller, does Steem have a much higher limit?

From my curation rewards, the smallest number I receive is 0.01SP, so a related question would be what about the rest, where do all the 0.001's go?

Possible Answers

Worse case all these micro pennies are being collected to fund @dantheman's evil world domination schemes.

Let's discount that one, for now.

More likely of the newly created steem none get used for these micro pennies and therefore there is more to be used on other posts.

While this would mean that no Steem is going missing, it does mean that minnows are having less impact and getting less rewards than they should. i.e If 1,000 minnows should've earned 0.1 cent each over a 1,000 posts, that $100 was redistributed to everyone else. Taking from the poor and giving to the rich.

Another potential reason, it could be that there is a transaction cost to paying out, and a number has been set so the system will not payout out below that.

This would make sense but that still leaves us with the minnows, who have a harder time reaching that minimum standard, losing out.

Conclusion

I am butt hurt that my post about cute bunny rabbits got zero.

More seriously, if you have the answer or if you can confirm one of my answers let me know in the comments below