Hello lovely people around the globe, hope you are all doing well. Today i am writing homework task for professor @sapwood which is about Steem Blockchain: STU, Reputation, Author/Curator Ratio, etc

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 or steem token unit is the underlying value storage in the steem blockchain. STU is different from SBD and USD. The reward mechanism of steem blockchian that is at heart of blockchian is actually distributed in the form of STU. Although it is symbolized as $ but it is different from USD when we look at its bifurcation.

STU rewarded on a post on steem blockchian after curating via Proof of Brain consensus, is divided into 2 parts. Half of the reward is distributed among curators and half is given to author. These rewards are known as curation rewards and author rewards respectively. The curation rewards are given as Steem power to the curators after 7 days ( post payout) . SBDs are not used for curation reward at all.

Author rewards have different mechanism of break up in itself. Depending upon the preference set by author at the time of posting content on the steam blockchain, author rewards can be either 50%SBD/50% SP or 100%SP. There is also an option of decline payout available on the steem blockchain but that is least commonly used by authors. So let's focus on former two modes of author rewards.

In case of 50%SP/50%SBD , half of author rewards ( 25% of total post payout) will be given as SBD and half as SP. As for SBDs are concerned, these are awarded as 1:1 ratio with STU. But SP is USD equivalent of STEEM.

Example

Source

In the above post, payout was set to 50%SBD/50%SP. So break up goes like ;

Post payout: $14.06
Author Payout: $7.03
Curator Payout: $7.03

Author Rewards : As post payout is set to 50%SP/50% SBD, so author would get 50% rewards as SBD and 50% as USD equivalent of steem . As SBD print rate is 100% . So out of $7.03 , author would get 7.03/2 as 3.515 SBDs and 3.515 USD worth of STEEM as SP.

Source

Now let's look at SP that author got. For that we should know the feed price at the time of payout. We can see that feed price is around $0.56 approx.

Source

So SP that author got = 3.515/0.56 = 6.276 SP

Curation rewards = 7.03/0.56 = 12.553 SP.

---

Sum up

• Total post payout (STU) = 14.06
• Curation rewards = 12.553 SP
• Author rewards = 3. 515 SBD + 6.276 SP

---

Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?

Reputation refers to an identity or trustworthiness of a user on steem blockchain. It is quantified by assigning a numerical value to each user. All users start with reputation of 25 . The reputation that we see on the front end is different from that on the rare end of the blockchain. The rare end repo or raw reputation is a numerical value that counts trillions. But at the front end, reputation that we see is real number rounded off to zero places of decimals which is basically the log function of raw reputation.

Source

Raw reputation score of my account is 122,175,301,782,097.

Reputation= (Log10(Raw Reputation Score)-9) * 9)+25

My reputation = (Log10(122,175,301,782,097)-9) * 9)+25

=> ( 14.0869 - 9) *9) + 25 = 70.780

Let's verify it from https://steemworld.org/@drqamu

Source

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 summary of my last post payout is given below

Total post payout (STU) = 14.06

Author rewards = 3. 515 SBD + 3.515 USD equivalent of steem.

Curation rewards = 7.03 USD equivalent of SP

1 SBD = 7.19 USD

3.515 SBD = 25.27

Total Author Rewards (USD) = 25.27 + 3.515 = 28.78 USD

Total curation rewards = 7.06 USD

Total post payout = 35.84 USD

Percentage of Author rewards 28.78/35.84 x 100 = 80.30 %

Percentage of curation reward = 19.70%

Ratio of author /curation reward = 80.30/19.70 ( 80/20 approx)

Normal break up of rewards between author and curators as per policy of steem blockchain is 50%/50%. For steem blockchain 1 SBD = 1USD. Steem blockchain maintains this policy. But in the external market, price of SBD keeps on varying and which inturn has bearing on supply/demand dynamics.

We have seen above that, as SBD value has broken the peg ratio of 1:1 USD in the external market and so post payout favours author rewards in 50%SBD/50%SP setting. Author got 80% of rewards when calculations are carried out in terms of USD. On the other hand, if 1SBD is less than 1 USD, author would be benefitted in 100% SP setting of payout.

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

Steem blockchain follows PoB consensus and is designed to generate only 25% rewards as liquid rewards in 50%SP/50% SBD setting.

But if we consider the above given example in which the post payout is $14.56 and with SBD price as 7.19 USD per SBD, the liquid reward (SBD) that has been generated is 3.515 SBD or 25.27USD, the USD equivalent of the total post payout is 35.84.

The percentage of liquid reward= 1(25.27/35.34) * 100 = 71.50%

So the intended liquid rewards of blockchain is almost thrice less than what we are getting currently or we are getting thrice more liquid rewards . Now we will see, how #club5050 will help.

Again I'll take up above example, if we presume that i had followed #club5050 initiative in the above post. So i should have powered up 50% of steem that i got and the statistics would be below.

Total post payout (STU) = 14.06
Curation rewards = 12.553 SP
Author rewards = 3. 515 SBD + 6.276 SP

For 3.515 SBD, i got 40.98 steem. After following #club5050, i had to power up 20.49 Steem. So the author rewards would be 1. 757 SBD + 26.766 SP

1.757 SBD = 12.63 USD equivalent.

Total post payout = 35.34 USD equivalent

The percentage of liquid reward= 1(12.63/35.34) * 100= 35.73%

So we can see a huge shift in liquid rewards from 71.50 % to 35.73%.

So it is clear that #club5050 will shift demand/supply dynamic in favor of STEEM by increasing the amount of staked tokens in relation to liquid tokens cashed out .

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?

The general principles related to above question are ;

• If a user with reputation lower than me upvotes my post, than his upvote will increase my post rewards (subject to SP size & voting weight) and would also upgrades my reputation.

• If a user with reputation lower than me downvotes my post, than his downvote will remove my post rewards (subject to SP size & voting weight) but won't affect my reputation.

I think the logic behind is that, gaining a repo organically on steemit is getting difficult with increase in repo but gaining rewards is not that much difficult. So a user with higher repo will only downvote a user with lower repo when later resorts to some activity that is not permitted by steem blockchain. In that case, decrease in repo is justified. On the otherhand, under ideal conditions and as a ethical user, steemit doesn't expect a user with lower repo to have better understanding of guidelines than a user with high reputation and therefore later is not expected to perform some activity for which former can guide or warn him/her by downvoting and thereby threatening him of losing reputation

For example, a user @sapwood has higher repo than me (@drqamu) where as another user @magmuz (61) is my younger cousin whom i introduced to steemit. Ideally @sapwood has betrer understanding of community guidelines and will only downvote me when I'll do something that is against community guidelines and in that case decreasing of repo is justified. On the other hand, i have better understanding of guidelines that @magmuz ( no intention to hurt) based on more experience here. So he is not expected to teach me by downvoting. After all it may be my shallow understanding of the matter.

Real example

---

Upvote from user with lower repo

---

Repo before upvotes

---

Post payout before upvotes

---

My post after upvote by @magmuz

---

My reputation after upvote

---

Conclusion : increase in post rewards from $1.80 to $1.82 and increase in raw repo from 122 201 059 353b153 to 122 201 113 577 043.

Downvote from user with lower repo

Repo before downvote

---

Post payout before downvote

---

Post payout after downvote

---

Repo after downvote

Conclusion : Decrease in post payout from $51.43 to $51.42 but no change in repo

Conclusion

STEEM blockchian follows Proof of Brain consensus mechanism to rewards the authors for the time they spent creating quality posts. The post payout rewards are distributed among authors as well as curators. I consider it as an act to honour the time spent by authors as well as curators in creating and curating quality content on the blockchain. Steem blockchain is programmed to distribute rewards in equal proportion to authors and curators. Curation rewards are only given as SP where as author is free to choose between 50% SBD/50%SP or 100% SP. This break up system of rewards is disturbed by altered pegging ratio of STEEM:SBD that should ideally remain 1:1 for maintaining demand/supply dynamics in favour of STEEM.