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Today I go through one of the best and simplest language explanation homework posts by @sapwood on steem blockchain STU, Reputation, author and curator Rewards . It's interesting to read the lecture post. Now I am Submitting my homework post to the professor.

QUESTION 1:

Answer 1:

STU also known as STEEM TOKEN UNIT is the amount of vote an author receiving on his/her post. This STU amount is totally different from Steem and SBD currencies. When an author get awarded by an amount of STU it will appear in terms of $ on there post. But the reality is that this $ is a combination of SBD and SP, only SP, SBD+SP+STEEM.

All these three payout depends on the debt ratio. If we talk about it a little bit then we can say that if dept ratio is less than or equal to 9% then SBD print rate is 100% and author will receive SBD+SP. If dept ratio is 9.5% (more than 9% less than 10%) then SBD print rate is 50% and author will receive SBD+SP+STEEM and if dept ratio is 10% then SBD print rate is 0% and author will receive STEEM+SP.

Further, This STU amount is not only for the author. But it's divided in between two. From there we come to know about STU break up. Before going into more detail about STU break up let us see an example of STU on steemworld.org/@utsavsaxena11

As you can see in the above image My STU of last 5 post are updated and are divided into two parts SP and SBD. To check our STU we have to scroll down to author rewards in steemworld.org/@username.

STU BREAK-UP:

As we discussed above that STU is nothing but STEEM TOKEN UNIT, THIS unit further divided into three class. First class is 50%SBD/50%SP, Second class Power up 100% and Decline payout. These three categories are available in the advance settings of each post you create. When we choose a desired Reward then STU further divided into two parts.

After every seven days during post payout, Reward divide in two categories. Author reward and curator Reward. Author reward is for author who wrote beautiful article on steemit communities and Curator Rewards are for those who voted on that article. But now the question is how this vote share of STU divide in between the two. So let us take a real examples of SBD SP share.

Example :

This image is from my last top 3 payout of season 4. As we can see that my STU amount is $90.55. My author reward advance settings is at 50%SBD/50%SP. Now let us see how this STU amount divide in between the author and curator.

According to the above Image Author Reward $45.28 and curator Reward is $45.27. currently SBD print rate is 100%, so according to dept ratio concept author will recieve 50% SBD and 50% SP.

Author Reward:

TOTAL: $45.28

So SBD amount we received on this post is around (45.28/2)= 22.64SBD.

Now SP amount is also 50% so simply we can divide and we will recieve 22.64SP. but it is not the correct way to calculate SP Reward.

We will recieve 22.64USD worth of steem during the time of our payout. During our payout price of steem in usd was $0.6012 so, the amount of SP we will recieve is around : 22.64/0.6012 = 37.65 SP.

So the total amount received by author is 22.64 SBD and 37.65 SP. Let us cross check this data from steemit wallet history.

Our calculated and observed values are 99% equal. Now let us see how much curator will recieve from this reward. The main point that I would like to mention that a curator only receive the amount of reward in terms of steem power SP.

Curator Reward:

Total: $45.27
During our payout price of steem in usd was $0.6012 so, the amount of SP we will recieve is around : 45.27/0.6012 = 75.29 SP. This 75.29 steem will be distributed in all the Curators and biggest share will be recieved by biggest curator.

This is how STU works on steemit and divide Reward into two parts, one for author and other for curator.

QUESTION 2:

Answer 2:

Reputation score is the score that display on main profile of a steemit user. It tell us about the good working style and amount of up-votes recieved by a user on steemit. More the reputation means more up votes received by an author on there posts. Reputation score depends on the vote weightage and amount of SP hold by a curator. If amount of vote is heavy then your reputation score will increase more.

Reputation score depends on three main factors Curator SP, vote weightage and price of steem during curation. If suppose on top 3 post of steemcryptoacademy curator have to curate 10% up-votes at current price it will Curate around 35-40$ of vote. But if price falls then to maintain 10% balance vote Curator need more SP which will increase reputation score more.

Now let us see how what is my reputation score and how we have to calculate this reputation score.

My Raw reputation score on steemd.com/@utsavsaxena11 is given as 37,739,477,739,055.

Now to calculate reputation score we have to use the formula given below:

Reputation= [{log10(37,739,477,739,055)-9}*9]+25

= [{13.5767959-9}*9]+25

= [4.5767959*9]+25

= 41.1911631 + 25

= 66.1911631

My reputation is so is coming out to be 66.1911631. now to verify this we will see our steemworld.org account where we can find our reputation score.
https://steemworld.org/@utsavsaxena11

As we can see that both observed and calculated value match with each other hence we can say our reputation score is 100% correct.

This is how we have to calculate reputation score from our raw reputation.

QUESTION 3:

Answer 3:

Let us try to analyse the same dynamics of SBD SP and the percentage of liquid steem in terms of USD. let us take the same example of my last steemcryptoacademy post.

In this my STU that is my total post payout is $90.55 which further divided into two categories of author reward and Curator Rewards.

Author reward : $45.28
Author SBD : 22.64
Now 1 SBD = $7.23 (On day of payout closing price)
So SBD in terms of USD is given as :
22.64*7.23 = $163.68

Author SP : 37.65
Now price feed in terms of SP and USD. As we discussed above that 22.64 that is 50% of SP Reward is in terms of USD so price feed will be equal to

Price feed = 22.64/37.65 = $0.6012

SP in terms of USD : $22.64
SBD in terms of USD : $163.68

Hence total post payout in terms of USD : $(22.64+163.68) = $186.32

---

Curator Reward: $45.27
Now as we discussed that Curator only receive Reward in terms of SP so the total USD reward Curator will recieve is : $45.27.

Hence, total payout of the post in terms of USD Is given : ${186.32+45.27}=$231.59

Now let us calculate the percentage of total liquid reward awarded to author in terms of SBD:

% of liquid reward = {Liquid reward (USD)/Total post Reward (USD)}X100

= (163.68/231.59)X100
= 0.7067 X 100
= 70.67%

So around 71%{70.67%} of the liquid reward was awarded to author on this post. Now let us calculate the ratio of Author and Curator Rewards. So,

Author : Curator

% of author reward: {AUTHOR REWARD (USD)/TOTAL REWARD(USD)}X100

= {186.32/231.59}X100
= 0.804 X 100
= 80.4%

% of Curator Reward : 100 - % of author reward
= 100-80.4
= 19.6%

So we can see that Author : Curator Reward is coming out to be :
80.4 : 19.6

We can say that it is likely equal to 80:20.

We studied that author and Curator Rewards are divided equally in ratio of 50:50. But according to our calculations in tems of USD we can see that tha ratio is not same the we learn. Practically the ratio is around 80:20. Also we learn that out of 50%, 25% reward is the liquid reward but practically the reward is more than that we learn. In my situation liquid reward is coming out to be nearly equal to 71%. Now the question is why such situation is created in which observed and calculated values are different and had a very large difference between them.

Reason:

In the steem blockchain, it is coded that 1 SBD is pegged to 1 USD. This show every Reward division as 50:50 author: Curator Reward. But in external market price of SBD and USD change. In current situation the price is around $7.21. it means that 1 SBD is around 7.21USD. hence it is Impossible to maintain 50 : 50 Reward system. If we take the same example that we used above then we can see that

Author SBD in terms of USD = 22.64$
Price feed = 22.64/37.65 = $0.6012
SP in terms of USD : $22.64

Total author reward: 22.64+22.64= $45.28
Liquid reward = (22.64/45.28)*100 = 50.00%

Total Curator reward: $45.27

Hence total post Reward = ${45.28+45.27}
= {$90.55}

Author reward= (45.28/90.55)X100= 50.00%

Curator reward= (45.27/90.55)X100= 49.99%

As we can see if 1SBD= 1USD then the whole system will work exactly same as mentioned in steem block chain, but since external price of USD and SBD change, this will change whole dynamics of Supply of steem. It means that 25% of liquid Supply jumps to 71% and 50:50 jumps to 80:20. The value of SBD increase in terms of USD. But because of less demand price of steem also get affected which changes the supply dynamics of steem.

QUESTION 4:

Answer 4:

Few days back, steemit come up with an idea of #club5050 in which they are initiating that every member on steemit community atleast stake or power up 50% of there liquid steem Reward that they earn in terms of SBD. Let us try to understand why steemit want such an initiative to be implement soon.

As we discussed above that 1SBD is pegged to 1USD in steemit blockchain but due to rise and fall in price of USD and SBD in external market, the reward ratio between author and curator change from 50:50 to 80:20. Also Liquid reward jump from 25% to around 70-80% which create dis-balance in steem price. This dis-balance can be addressed as that with increase in liquid reward percentage supply of steem coins increase but the demand remains the same which make steem price to move side ways or downward.

Maximum time we can see that price of steem coins remains in side ways market. This is because of unbalanced supply chain. Club5050 initiative can resolve this issue. Let us try to understand how this can help steemit as well as every user of steemit.

Suppose in a week you got 85% of liquid reward (SBD) and power up 50-51% of your liquid reward. This will help to main your liquid reward to 25% and also maintain steem flow balance in steemit. Now the question is that by power up the my liquid steem, are these coins belong to me or to the steemit community? Answer is all your liquid coins that you power up belongs to you only, you can apply power down any time you want. The only main reason of this initiative is to maintain steem coins flow balance and also to increase price of steem coin.

Also if we power up the steem then we can easily increase our voting power which will help us to increase our Curator rewards. Third thing that I would like to address is that this initiative will help us to hold maximum coins within the platform only and this will help us to reduce external flow of coins which then increase price of steem coins.

So by such an initiative one can make bright future os steem coins and steemit platform. I would love to join and I would recommend you all to join this initiative so that we all can make our community strong.#club5050.

QUESTION 5:

Answer 5:

Let us consider the first situation in which A person with lower reputation up-votes my post. When a person with lower reputation up votes my post then there will be a small change in my reputation and STU payout Reward. My reputation and my Payout both will increase relative or depending upon the amount of steem power the person hold who up-votes my post. Let us take an example and see how and at what extent we can see the change in reputation and payout.

Here I consider myself as a person with less reputation and dharmps as user more then me.

utsavsaxena11(66.190) up-votes the homework post of dharamps(69.663):

As we can see dharamps have reputation more than me, so let us try to analyse that if I up-votes his post and will it's reputation will increase or decrease. Also what will be the change in payout.

• First we saw the profile of dharamps and we can see that on his homework post he received 1.72$ STU. At this time when I checks it's steemd.com/@dharamps web page I found its raw reputation score is 91,739,782,515,760. By this raw reputation we find its reputation score is : 69.6630193.
  

• Now I up-votes his post and we can see that it's STU value changes from 1.72 to 1.73$ means that a small increase of 0.01$.
  
  At the same time when I saw this steemd.com/@dharamps web page I found that there is a change in raw reputation which indicates increase in raw reputation. Its raw reputation now become equal to 91,739,912,024,869.
  
  By this we calculate the new reputation that is coming out to be : 69.6630247. We can see that there is very small change in reputation. The reason of such small change is my Steem power. I only have around 218 steem power and rest I have delegated. So there is a change but the change is very small in both reputation and payout.
  
  So because my steem power is low there is a very small change in reputation and payout amount of dharamps homework post. But yes when a lower reputation person up voted a person with higher reputation then higher reputation person will get advantage of increase in reputation and payout amount.

Now let us talk about the second case in which we will see that what will happen if a person with lower reputation down-votes a person with higher reputation.When a person with lower reputation down votes my post then there will be no in my reputation and STU payout Reward may remain the same or the reward they pay me get revert back.
Let us take an example and see how and at what extent we can see the change in reputation and payout.

utsavsaxena11(66.190) down-votes the homework post of dharamps(69.663):

As we can see dharamps have reputation more than me, so let us try to analyse that if I down-votes his post and will it's reputation will decrease or not Also what will be the change in payout.

• Before applying downvote on one of the post of dharamps I check that its raw reputation is equal to
  91,739,782,515,760 and payout amount is $1.72.
  

• Now I apply downvote on dharamps post and saw that nothing change neither payout nor reputation. Both remains the same. The reason payout not change is because my less steem power. Since I don't have enough steam power My vote percentage doesn't matter on payout of dharamps. Similarly, my reputation is less than that of dharmps so there will be no change in his reputation too.
  
  

Now if we talk about steemcurator01(62) whose reputation is less than me and if steemcurator01(62) downvote my post then it will not change my reputation but will change my payout amount as steemcurator01(62) have more steem power which create dominance on my Payout.

Now let us take another example in which we will discuss about another person having reputation less than me. For this I will be choosing sarveshnegi2811 as my partner. His reputation is 65.7 less than mine (66.190).

So when we down-votes my post there is no change in my reputation and also no change in my payout as his steem power is also low.

So As he down-votes I can see it on steemworld.org where we can see a red downvote on my post.

and then when I check my post payout it is same as it was before downvote that is $1.61. My Raw Reputation also remains the same as 37,741,919,313,816.

So we can say that nothing will change or no change will take place if a person with lower reputation down-votes your post.

Similarly when sarveshnegi2811 up-votes my post then there will be a change in my both reputation and payout amount. The reason is the same that if a person with reputation lesser than your reputation votes you then your reputation and payout get affected and get increase.

So when sarveshnegi2811 up-votes my post payout amount changes to $1.62, small change of 0.01$.

Then As we discussed that my reputation was not changed in downvote but not it is changed from 37,741,919,313,816 to 37,742,320,767,081. Hence we can say total change in reputation score is around 66.191416 to 66.1914574. We can see that there is small increase in reputation of mine as sarveshnegi2811 up-votes my post.

So up-votes of less reputation person increase my reputation and payout amount to an extent depending upon there steem power, as sarveshnegi2811 don't have enough steem power hence his vote didn't change my Payout and reputation score to a large value but show small change.

My reputation will decrease only and only if a person having reputation more than me down vote my post. For example if dharamps downvote my post having reputation more than me that is 69.6 then my reputation will change decrease, not a very large value but we can see a change in raw reputation easily.

Conclusion

It is time to conclude our homework post in which we discuss about steam blockchain steem token unit reputation and steem power. STU also known as STEEM TOKEN UNIT is the amount of vote an author receiving on his/her post. This STU amount is totally different from Steem and SBD currencies. When an author get awarded by an amount of STU it will appear in terms of $ on there post. But the reality is that this $ is a combination of SBD and SP, only SP, SBD+SP+STEEM.

Reputation score is the score that display on main profile of a steemit user. It tell us about the good working style and amount of up-votes recieved by a user on steemit. More the reputation means more up votes received by an author on there posts. Reputation score depends on the vote weightage and amount of SP hold by a curator. If amount of vote is heavy then your reputation score will increase more.

We can easily calculate reputation score and also can say that reputation score is an essential part of every steemit user profile. More the reputation indicates that more up votes a user get on their blogs and posts.

In my final words I would like to say each and every user on steemit community should join the initiative club5050, this initiative not only change the working system steemit tokens but also in long-term increase the steem coin price. We have to see this community as a long term community and also so we have to work to grow this community more. Thankyou so much.