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

Hi. prof. @sapwood, thanks for this wonderful lecture. Below is my submission

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)

What is STU?

Thanks to this lecture, I have never paid much attention to the word STU which always looks strange to me whenever I find myself on steemworld.org, but based on this lecture, I have learnt that it is nothing to worry much about. So, what then is STU?

STU is a term that is commonly known among members of the Steemit developers' blockchain ecosystem, and it simply stands for Steem Token Unit which has to do with the amalgamation of different reward payouts on the Steem ecosystem. These rewards are Steem, Steem Dollars (SBD), and Steem Power (SP). Most of the time, post payouts are denoted in dollars ($), but in reality, it is a combination of the three at once, or a combination of two, and sometimes just one. doesn’t make any sense when you introduce a newbie to the steemit commit and show them your payouts. Normally, when they see the payout denoted in fiat ($), they begin to say Just that and it's like it's not low or not enticing until you further break it down into SBD equivalence for them to get a better understanding of the payout system.

The authors of a post can configure their payouts in three ways: 50%/50%, which is comprised of *50% SBD and 50% SP, which is the most common among users on this noble platform, 100%, which is comprised of **100% SP, and *Decline payout.

STU BREAK-UP

As already stated, STU is a combination of the three reward payouts on a post.

• STEEM

• STEEM DOLLARS (SBD)

• STEEM POWER (SP)

Every user on the Steemit platform can set up his or her post to receive the reward payouts on the post using the below mechanism.

• 50% SBD/50% SP: When an author uses this payout technique, the author is deemed fit to receive 50% SBD and 50% SP in accordance with the debt ratio.

*100% Power Up: This payout mechanism can also be employed on a post to denote that, whatever the post's payout will be should be used up to power up.

• Decline Payout: Users can also decline to receive any payout from a post, thereby redistributing payouts made on a post within the ecosystem pool.

And one thing to also note is that curators also get curation rewards shared in an equal proportion of a post, but they receive them in Steem Power (SP).

Using an example to illustrate this;

This was my last crypto assignment and the payout was about 14 days as at the time of writing this. As you can see above, the payout was shared in equal proportion with the Curator and the Author.

Break down of STU

Post Payout (STU)= $10.09

Author Reward= $5.04

Curator Reward=$5.04

Authors Reward Calculation

Authors Reward Total = 5.04

When using the 50%/50% SBD and SP, respectively,

Author’s Reward in SBD = 5.04 / 2 = 5.52SBD, which implies 2.52SBD was gotten from this post.

Author’s Reward In SP = * 5.04 / 2* = 5.52SP, this also means that, 5.52 SP was gotten from this post as well.

Current USD Equivalence =2.52 * 6.7 = $16.88 which implies that equivalence of 2.52SBD in USD is $16.88.
SP Equivalence = 5.04 / 0.6 = 8.366SP

Curators Reward

Curators Reward = 5.02 / 0.60 = 8.36SP

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

To be able to do this, you first of all have to visit https://steemd.com/@massachussets to be able to have access to the raw reputation, which will aid us do the calculation.

As you can see in the above image,

Raw Reputation = 27,898,894,406,370

In calculating the Raw Reputation, we use the formula;

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

Reputation = (Log10(27,898,894,406,370)-9)*9)+25

Reputation = (4.445)*9)+25

Reputation = 65.010

When compared with my data on https://steemworld.org/@massachussets, it is the same as the one calculated.

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 above example,
Post Payout = 10.09
Author Reward = 5.04
Author Rewards(1 SBD is 6.7): 2.52SBD * 6.7 = $16.88USD
Author Rewards (1 STEEM at $0.60): $5.04 = $8.36USD
Author Rewards (USD): 16.88 + 8.36 = 25.24

The Curator Rewards: $5.04

Curator Rewards (1 STEEM at $0.60) SP): SP = 8.36SP = 5.04 USD

Curators Rewards (USD): 5.04

Total post payout (USD): 25.24 + 5.04 = 30.28USD

Author total reward payout percentage: 25.24 / 30.28 = 83.36%

Curator total rewards: 5.04 / 30.28 = 16.64%

In contrast to the ratio, the total percentage of the payout of the author is 83.36% and that of the Curator is 16.64% which can be seen as a clear deviation of the 50%/50% has been reduced to 80%/20% for the Author and the Curator respectively.
As the it has always been a norm on this space that a ratio of 1:1 is an ideal distribution of reward between Authors and Curators and due to the volatile nature of SBD in the external market which is not purged at 1 USD = 1SBD has accounted for this deviation.

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

The #club5050 Initiative

This club5050 initiative is an initiative that is brought by the steemit team to help increase or maintain the value of the steem token. So what is this all about ? Well, It is basically a form of powering up, thats transferring our steem to steem power, but with this case we have to power up 50% of our post payout we receive. The main agenda for bringing this initiative is to help users invest more in the blockchain than withdrawing everything which at the initial stages we wouldn't see its benefits but its always worth it.

Over the past days and months we all can testify to the fact that the price of SBD has been rising much higher than steem, on the blockchain we have less control of SBDs, it is always steem. Even to power up you must first convert your SBD to steem before one can power up, so steem needs so much attention. But if all we do is withdraw our liquid steem always, the value will always be degraded and hence not needed in the market, because the team of steem doesnt want this to happen that is why the initiative of #club5050 was brought.

A practical example i can give with this initiative is for example my post was voted 10.09$ divided it by 4 i will be receiving 2.52 SBD. If i am do participate in the club5050 i will have to power up 1.26 which is exactly 50% of my 2.52 SBD obtained which when converted to steem will be 16.74 steem. Powering up this will help increase the liquid steem preserved which in a long run help increase the demand of steem. So above all the initiative club5050 will shift the demand or supply dynamics in favor of steem

Consider a user having a reputation lower than yours, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, will that affect your Payout and Reputation both? Explain Why & How; with Examples?

I will like to take this question in two folds. The first i will explain is when a user has a reputation higher than mine, and upvotes me what will happen. Well no matter the reputation of the user on steem if he or she upvotes you will definitely get rewards but the weight of the reward will depend on the voting power he has. So the higher the SP the higher the reward a user is able to give. The same goes with reputation, a user with a higher SP will give a higher reputation. For example if i get an upvote from curator01 who has an SP of 10million + and with a reputation of 62.530, i will get more rewards on my post and also i will get an increase on my reputation due to the weight of his vote. So for instance if @farhmade who has a rep of 67 and SP of 1,686 which is much higher than mine receives an upvote from me, he will get rewards on his post and his rep will increase as well but not as much as that of curator01 due to the weight staked. Lets take the screenshots below to better understand the concept.

Before upvote his STU was $0.13 and his reputation was 47,771,283,542,301

After the upvote his STU rose to 0.16 and his reputation also increased as well to 47,772,017,672,845.

With the above illustration, it shows clearly that upvotes increases your rewards and your reputation.

With the same instance, @farhmade who has a rep of 67 which is higher than mine which is 65 get a downvotes from me, well in this instance he will only lose some rewards from his post but his rep will remain the way it was. Downvotes to me are very extreme act that users do it to people who violate rules on steem. With my friend i have been with here i don't have never seen him flaw against the rules here so there wouldnt be any need to downvote him.

Conclusion

It was indeed a wonderful lecture and thanks for sharing such knowledge to us. It has really made me do so much exploration on steem. We know know from this lecture that upvotes from either a user with a higher or lower reputation increases your rewards and also your reputation. When it comes to downvotes, it only affects your rewards. Thank you

All screenshots are taken from

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