Steem Blockchain: STU, Reputation, Author/Curator Ratio, etc.- Steemit Crypto Academy- S4W7- Homework Post for @sapwood
Greetings to all and sundry,
It has a great lecture reading the article post of Prof @sapwood and it is with much pleasure that i submit this homework in response to the lecture.
1. STU, Break-up of STU, Calculation of a real example of a post payout.
The STU also know as the steem token units considers the overall token distribution on the blockchain with regards to reward pool. The term came about when developers used it and it stuck which means it is not a standard that came with the blockchain.
STU looks at steem, steem backed dollar and steem power. These are the three things you would see on the blockchain and they all have their technicalities and underlying factors that may affect them at the end of the day.
The main currency of the blockchain is steem, it is what powers it and affects the voting weight and it's equivalent value on the steem blockchain. Steem can be exchanged to SBD and vice versa on the blockchain's internal market which can be accessed on your wallet.
Steem staked to the blockchain is called steem power, you cannot stake sbd on the blockchain since it's not the main currency. SBD was created to act as a peg to the USD hence the name steem backed dollar however due to the rise in SBD with respect to the USD and external market factors this function is not been followed accordingly.
It must be noted however that the Steem Token Unit as we know it works hand in hand with the Proof of Brain system. What does this mean? It means that the the amount of steem power you have staked and the vote weight you met out to another's post will have a direct influence on the recipient's post in terms of reputation and how much of the reward pool the person will be receiving.
The idea behind the proof of brain system is such that the higher the vote on a post the better and original the quality of the content which means the post should reach a bigger audience and be appreciated by the community.
Post Payouts, Author and Curator
Now when writing a post the author has the will to choose between 50/50 payout, 100% or declining the payout which simply means that he wouldn't be taking anything from the reward pool. For the
50%/50% payout it simply means that half of the earnings on the post will come out as steem or sbd or both depending on the print rate or debt ratio and the other half as steem power.
A 100% powerup simply means that all payouts will come as steem power staked to the blockchain this will still however be divided into author and curator rewards which i would be going into shortly.
So as i was saying, payouts on a post goes to both the author of a post and the curator of the post and this is distributed equally between the two.
And so basically we are looking at 25% of the actual payout going to the author in terms of sbd, steem or both depending on the dept ratio and the 75% stacking on the blockchain. This is because the 50% that would go to the authors does so in steem at the current dollar rate.
Calculation of a Real Example
For this demonstration i am going to use a pending payout on my account which is $35.47 as it stands and can be seen in the image below.
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Post payout: $35.47
Author Payout: $16.80
Curator Payout: $18.66
According to steemdb.io the print rate of sbd is still at 100% and so with this payout which was set at 50/50 let's calculate how much the author will be receiving in terms of USD.
Author Reward;
50% of payout $35.47 gave us $16.80 now half of this comes as SBD giving us 8.4 SBD and 8.4 USD in steem power which means we get 13SP, 8.4/0.6444 (steem = 0.6444 at 7am on 14th of October) and 8.4 * 7.603 (price of sbd at 7am on 14th of October) giving us 63.86 USD. This puts the total Author earnings at 8.4+63.86 = 72.26 USD.
Curator's Reward;
As shown in the image that was above the curator got $18.66 which puts it at a total of (18.66/0.6444) 28.96 SP
2. Calculating and Cross-checking your account reputation on steemdb and steemworld.org
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According to steemdb.io my reputation score sits at 151,946,882,095,415.000 using the fomular for calculating reputation thus;
R= Log 10( Raw Reputation Score ) - 9 ) * 9 ) + 25
we get Log 10( 151,946,882,095,415.000 ) - 9 ) * 9 ) + 25
which gives us ((14.18 - 9 ) * 9 ) + 25
summarizing: (5.18 * 9) + 25
45.64+25
71.63
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3. Percentage of your Post Payout generated as liquid rewards(SBD). Explanation of 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
Based on my calcuation done earlier from my recent post payout a total of $72.26 and $18.66 came out as author and curator's reward respectively making a total of $90.92. The total SBD reward was $63.86
This mean a total of 70.24% (63.86/90.92 * 100) was generated as liquid SBD reward.
A total of 79.48% (72.26/90.92 * 100) was generated as author reward leaving curator reward at (100 - 78.48 ) 21.52%.
The Role of SBD Rise
Under ideal conditions the sbd is supposed to be equivalent to 1usd however as it stands now sbd is howevering around $8.344. This results in more usd going to the authors as was seen up there where almost 80% of the rewards in USD went to the author.
However based on the ideal ways with which the blockchain was designed only a 25% of the total reward was supposed to go to the author. Which means that more liquid rewards are leaving the system than it ought to thus obstructing the balance of supply on the blockchain.
This has repercussions on the debt ratio, the PoB system, the stability of the ecosystem as well as the prices on exchange platforms.
Benefits of #club5050 on correcting the supply and demand balance towards steem.
After going through the various calculations one would understand that the balance has been completely tipped off due to the high volatility and price of sbd from the peg.
What this means is that more sbd (steem upon conversion) would be coming to the author and when these are continuously cashed out the balance continues to remain unbalanced.
When we power up half of our earnings or sbd at the end of the day we are basically reducing the 25% of the STU that comes out as reward pool to 12.5% percent and so from the previous live example we did our $63.86 would have had $31.93 powered up to add to the $27.06 that was totally staked to the system making it $58.99.
Thus 64.88% of the total rewards to the system thus correcting trend a bit. Although we are not getting the 25% yet it is a move in the right direction. This will also reduce the number of steem on supply thus increasing the demand and having a positive impact also on the steem price.
The Reputation Effect from a user with lower reputation
The reputation as we know it goes hand in hand with the proof of brain system owing to the fact that individuals with higher reputations are expected be trustworthy users who have demonstrated time and again to be effective at producing good and quality content.
At the beginning we are start from 25 and grow as we produce content and others vote on it. What you may be wondering however is how come some users grow reputation quicker and others do not although they may be receiving more upvotes.
Reputation is directly proportional to the vote weight with which one may cast a vote on a post and the total power with which the voter may have staked to the blockchain. And so what happens is the higher the weight, the higher the value and the higher better it is for reputation growth.
It must however be noted that those with reputations lower than us still have an impact on our reputation. Users with reputation lower than us when they cast a vote the prize pool flow accordingly with regards to the SP and voting weight and also have a positive impact on our reputation.
On the other hand when they downvote, the reward flows back to the reward pool accordingly with regards to SP and voting weight however does not tend to have any impact on our reputation. It is not the same for a downvote from a higher reputation account though so do the right thing on the blockchain.
Why this happens is because those with lower reputation and tend to have smaller SP as compared to those with higher reputation owing to the fact that all these parameters come together for one's reputation to go up. And so for them to have any significant impact on a post they need to vote with higher weight which is very good for reputation growth whereas the user with more SP votes with lower weight to give a significant amount.
And so assuming someone with an SP of 10K wants to give $0.10 he only need to vote at 60% whereas the user with 6000SP has to vote at 100% weight thus moving up the reputation points more than the other.
Conclusion
The STU doesn't only deal with steem and sbd and sp but also looks at the author and curator's reward in terms of percentages in a way that seeks to balance the supply and demand of tokens in favor of steem for the total growth on the ecosystem.
However, the steem back dollar peg which is not acting as it should skyrocketing to 8 dollars and over is causing more supply than demand and an imbalance in the system. Powering up is one of the acts that seeks to manually correct this imbalance.
The STU mechanics also goes in line with the proof of brain much like the reputation system and seeks to support good and quality content creators reach the masses and earn better for their originality and good content
I believe this homework has really enlightened me on so many things about the STU of the blockchain and i am much grateful to professor @sapwood for this amazing lesson. Thanks for your time and stay safe.
#club5050 😀
😌