TRON and Steemit Integration- Part 1

2020 is a year for Steem full of opportunities, and the best one among them is arguably the integration of TRX in Steemitwallet. There has been a lot of speculation(both positive & negative) since 14th Feb 2020, when the new partnership with Tron was officially announced.

Of course, we have had a roller coaster ride but towards the end of the year 2020, we are more stable than ever. We have a clear direction now, thriving communities, most importantly we have genuinely lowered the barrier to entry.

I had never seen before in this ecosystem where the commoner has a place to write diary games (detailing their daily activities) and earning rewards consistently, but that is happening now in a social platform like Steemit, thanks to the new leadership. At the same time, we should not forget that we have been going through the struggle & uncertainties with COVID-19, albeit the situation is improving slowly as compared to what it was 6 months back. That said, many are earning a living from the various programs and challenges in Steemit.

Before proceeding with #trxintegration, I would like to highlight some of the best attributes of Steemit in 2020 and which makes Steemit different than the other platforms:-

• We should not forget that the Blockchain and the associated platforms are not that easy to understand for the average internet users. Moreover, they are all well seasoned with centralized systems, so any slight deviation feels like a barrier to entry. But don't worry, Steemit is the only social platform where there is a dedicated program called Newcomers' Community, where the Newcomers are guided and steered to a smooth start with the know-how of Steem Blockchain, securing keys (which is the most important part of any Blockchain), thanks to our captain @cryptokannon and the Greeter's Team.

• It is the only decentralized Blockchain platform where you can find dedicated tags like #onepercent #twopercent #affable and are being rewarded on a daily basis for every valuable engagement. No other Blockchain platforms have such a structure of reward for the engagement.

• The contest organizers have a new lease of life now, I had never seen before since the inception of Steem Blockchain where the contest organizers are rewarded and supported by the Steemit Team. But that is happening now. I don't think there is any other Blockchain where people get similar support.

• The Steem Blockchain now fosters a better sense of the community. Now the users are more encouraged to select the power-up reward. Now people partake in initiatives and challenges and rally around "powering up their payout". That is not just helping to build their SP, the community- supporting each other, but also helping the supply/demand equation in favor of STEEM. We are the best in the price action right now if compared with our counterparts. Thanks to Steemit Team for encouraging and motivating for such a cause.

• In Steem Blockchain we perpetuate our activities on a daily basis, so as the various contests, the most simple challenge #thediarygame is a never-ending game now. But Steemit Team also brings diversity to cater to the various areas of interests of the bloggers. At any given time you can certainly find parallel contests: #thediarygame #mytown10pics & crypto contests from time to time.

As the TRX integration in Steemitwallet goes live now, economically it adds a new dimension of earning to Steem users. Most importantly, it is an earning from another Blcockhain, a coin which is a top 20 coin in terms of Marketcap. Put simply, with such a new dimension it fundamentally strengthens Steem Blockchain.

In this publication, I will cover how attractive it can be(mathematically) when we promote Steem now and how to optimally earn TRX in Steem Blockchain.

How can you personally use this news to promote Steem and invite people to join the platform?

There are different types of actors in Steem Blockchain: Authors, Curators, Investors, Developers, etc. As the TRX integration and the reward scheme is pivoted to 1SP:1 TRX, all the actors who earn SP are entitled to TRX reward in a 1:1 ratio.

Since all the actors earn SP, they can take advantage of this new development and accordingly optimize their position.

Since we are discussing how to promote Steem with this news, basically we should focus on getting new investors and new users. A user can be both investors as well as an author or a curator or both.

What is the ROI now for an investor?

By the term investors, we simply mean someone who is invested in STEEM/SP. He may not be an author, he may not be an active curator too. But as an investor, he might be interested in the DeFi use-cases and the ROI that he can potentially get from Steem Blockchain from his investment.

ROI:-

• Interest Rate- All the vested token holders are entitled to 15% of the reward pool in Steem Blockchain. At the moment, the approximate APR is 4.2%.

• Delegation Reward/Curation Reward- If you have time, then you curate and earn a curation reward(50% of the post payout, in general, is distributed among the curators). If you don't have time, you can simply reach an agreement with another person/community and delegate your SP, in return you earn a delegator reward. The current trend projects 25.42% APR with daily payout(Ref- https://steem.dlease.io/market).

• All the SP you earned, will also earn you an additional reward in TRX in a ratio of 1:1.

Since the curation reward, interest, etc all are paid in SP, it will also earn you a TRX reward in 1:1 ratio.

At the moment, the TRX price is $0.03 approx and the STEEM price is $0.2 approx. Sp TRX/STEEM ratio is 0.03/0.2= 0.15. Let's calculate how much can you earn in APR (total) if you invest 1000 in STEEM and power it up(SP).

• Interest Rate- 4.2% APR- 1000*0.042= 42 SP
• Delegator Reward/Curation Reward- 25.42% APR- 1000*0.2542= 254.2 SP

Total SP= 296.2 SP per year(from 1000 SP investment)

• TRX Reward- 1 SP: 1 TRX= 296.2 TRX ~ 44.43 STEEM

So Total Reward earned by investing 1000 STEEM, and powering it up = 42+254.2+44.43= 340.63 STEEM.

So APR for just investing 1000STEEM/SP= (340.63/1000) *100= 34.06%

Please note that an investor will also earn from store-of-value when the STEEM price rises. So one can get 34.06 % APR from simply investing in SP, without being an author or curator, etc and if you perform that role alongside investment, this figure could further go up.

Before TRX integration the investors were getting= 25.42%+4.2%= 29.62% APR

With TRX integration the investors will now get(potentially)= 34.06% APR(as calculated above). So a (34.06-29.62)%= 4.44% increase in APR.

Put simply, with TRX integration the potential APR in Steem Blockchain is enhanced by 4.44%.

How motivating it is now for a New user joining Steemit?
A new user joining Steemit can earn from PoB, in which the author and curator share 65% of the reward pool in a ratio of 50/50. The Steem Blockchain has a fixed reward pool to incentivize the content creators and curators.

With the TRX integration in Steemitwallet, now the same users can earn an additional reward of TRX for every SP earned in a 1:1 ratio.

So for the same activity, not just a user is being incentivized from Steem Blockchain but also from the Tron ecosystem. TRX is a top 20 coin in the market cap. The combination (STEEM+TRX) is now too lucrative to ignore and it might attract professional bloggers too to this chain.

Even TRX investors might feel motivated now to produce content in Steem Blockchain and earn TRX+STEEM rewards and build their portfolio.

How can you optimize the amount of TRX you earn?

As stated earlier, the TRX reward is distributed in Steem Blockchain for every SP earned by the users in a 1:1 ratio. The authors in Stem Blockchain generally have an option to either choose 100% Power Up reward or 50% SBD/50% SP Payout.

In "50% SBD/50% SP" payout, the author receives 50% of the reward in SBD and the remaining 50% in SP.

In "100% Power Up" payout, the author receives 100% of the reward in SP.

So more the SP you earn, the more TRX you get. Let's take an example, say, author A selects "50% SBD/50% SP" payout and author B selects "100% Power Up" payout. The post payout for both authors A & B is $10.

As 50% of the post payout is given to the author and the rest 50% is distributed among the curators, both authors A & B will get $5.

Earning of Author A
As author A has selected the "50% SBD/50% SP" payout, he will get 50% of $5 in SBD and the remaining 50% in SP.

The current price of STEEM is $0.2.

So author A will get= 2.5 SBD+(2.5/0.2)SP= 2.5 SBD+12.5 SP

With the recent TRX integration, he will also earn a TRX reward in a ratio of 1SP: 1TRX, so he will get 12.5 TRX too.

Earning of Author A- 2.5 SBD+12.5 SP+ 12.5 TRX (in a post payout of $10)

Earning of Author B
As author B has selected the "100% Power Up" payout, he will get 100% of $5 in SP.

The current price of STEEM is $0.2.

So author B will get= (5/0.2)SP= 25 SP

With the recent TRX integration, he will also earn a TRX reward in a ratio of 1SP: 1TRX, so he will get 25 TRX too.

Earning of Author B- 25 SP+ 25 TRX (in a post payout of $10)

For the same payout, with "100% power up" reward one can make double earning in TRX as compared to "50/50 payout".

Put simply, the best way to optimize TRX earning in Steem Blockchain is to choose the "100% Power Up" setting.

Thank you.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02

Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works. The logos are taken from the respective official sites.

---

The post payout is set to "Power Up 100%".

DISCLAIMER

^{This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. So it should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their financial adviser and/or conducting their research and due diligence.}