Minnowbooster rates
It's possible I'm missing something, but recently my payments from the minnowbooster bot have been much lower than in the past. Initially, I attributed this to a low steem price, but after a little research, it doesn't seem to add up.
I lease about 28,000 SP to the minnowbooster bot
I get paid about $5 - $10 per day
If I start a contract for 4 weeks, I find that I can lease 28,000 SP for 746 STEEM or $24 SD/day.
This means that the Minnowbooster bot is taking a profit of $14-$17 per day on the lease. Is my math correct? Can anyone tell me if I'm off here? I'm about to turn off my delegation but wanted to make sure I wasn't missing some key piece of information.
I have seen the same trend in my payments. Hope there is a great explanation.
The STEEM price shouldn’t affect the leasing price/payments. It’s a fixed value.
I’ve also questioned the percentage taken by Minnowbooster. It seems to be very high compared to what the actual leasing account receives. I figured the facilitator would take a small percentage of the cost and the actual owner would get the large portion of the payment.
Can’t say that I’m surprised though, considering the parties running this.
Hey @ats-david, we take 10% for delegations to the bot and that did not change. We noticed payouts on our end declining the same as on the customers end.
My guess is that it is a bit related to the steem price and a lot to the fact that we are improving our vote worth calculations and now dish out more accurate votes. We are also now refunding users the difference in steem rounding and what we intended to vote. All this could cut into profits.
The problem is that you delegated your steem power to minnowbooster instead of actually loaning it out through the market to an actual account.
You need to go here and actually fill a market order before you'll make the fixed returns. Right now you're just getting paid out in sbd as a percentage on the curation rewards that minnowbooster makes.
When you actually lease out your sp to another user you'll get paid a fixed amount of Steem everyday according to the lease agreement. The return is much better going this route than the way your currently doing it.
Your statement doesn't address the point of my article. I was earning $12-$20 per day doing exactly the same thing only 3 weeks ago. I already know that I can loan SP directly to end users. I was asking @minnowbooster if my math is right and, if so, what has changed.
Sorry I'll try to make it a little clearer because the statement is actually addressing the point. You were earning between $12-$20 per day because your earnings are coming from the curation rewards you get by delegating your SP to the bot.
So now ask yourself what two key components come into play for how the bot makes curation rewards. One is the upvote and the second is when that vote occurs on the post.
Issue one has been impacted lately because minnowbooster now sells other users upvotes to fill the need at the lower end of the spectrum when it used to be the one to fill that need. Thus it now votes less.
Issue two comes into play when users figure out that it's most beneficial for them to vote on their new posts as quickly as possible using minnowbooster so that the majority of the curation rewards go to the them as the author, rather than to the minnowbooster account.
Thus you are now seeing lower returns because you are getting hit by both factors because you are dependent on your rewards coming from the minnowbooster account curation rewards rather than locking in a fixed daily rate by using the marketplace.
Thanks for the reply. Removing my bot delegation today.
Glad that made more sense, you're definitely much better off going the other route.
Hi, @billbutler,
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We wont bother you anymore, happy steeming!
nice post my friend
Hey @billbutler,
first off we are noticing the same payouts as you are and we guess it is mostly because we improved the way we calculate our votes to be consistent with the weird rounding of steem. This cuts into investor profits (and also our profits obviously) but we guess these are profits that should never have happened and we are glad we fixed it.
Secondly you can't compare leasing SP with delegating to us. Delegating to us means we use your SP to upvote. We can't lease it again. That is one of the limitations the delegation system has. If the lease is not profitable enough for you, we can suggest you to try out our new sell vote feature or delegating on the market.
We certainly don't earn $14 - $17 on you, we earn exactly 10% while you earn 90%. So we earn under 1SBD per day on your lease.
Delegation payments are bound to fluctuate and we don't offer any fixed rates for it. We sell the votes and split the pot each day. With sell vote you now have a second option that allows you to be separate from other investors earning your fixed share for each vote you sell.
Interesting. I'm curious to know, besides the change in Steem price (which was only a 30% difference), what created such a huge difference in payouts since a month ago.