Default (50% SBD / 50% SP) vs. Power Up 100% 2018-06-03

in minnowsupport •  4 months ago
Right now, Default (50% SBD / 50% SP) post reward has 45.30% more payout than Power Up 100%.

Why this information

I am providing this information for those who would like to compare different post reward payouts and pick up the best one when they create blogs and comments.

Three Options

There are three available options for blog post rewards and comment post rewards:

  • Decline Payout
  • Default (50% SBD / 50% SP)
  • Power Up 100%

Which option would give you the best overall payout? Well, we know it is not Decline Payout for sure. How about between Default (50% SBD / 50% SP) and Power Up 100%? The answer is it depends.

It depends on the SBD and Steem prices as well as steem_to_sbd ratio at the payout time. Let us take a look at the equations of how payout is calculated first.

Equations

For Default (50% SBD / 50% SP):

  • Author Rewards SBD = author_payout * 50%
  • Author Rewards SP = author_payout * 50% / steem_to_sbd

For Power Up 100%:

  • Author Rewards SP = author_payout * 100% / steem_to_sbd

Please note that the payout is calculated at the payout time using the Blockchain variable steem_to_sbd exactly 7 days after you create a post, not when you create a post.

Below are current market prices of SBD and Steem in USD, as well as sbd_to_steem ratio from the Blockchain.

Time (UTC)2018-06-03T17:32:27
SBD Price2.01491
Steem Price2.54657
steem_to_sbd2.409

Let us assume the author reward portion of the post payout is $1. I then use the equations above to calculate the payouts and convert them to a common currency USD for comparison. You can use any other currencies for comparision.

  • Default (50% SBD / 50% SP): $1.54 USD
  • Power Up 100%: $1.06 USD

steemeconomics.png

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On a $1 payout from the system, you will receive .5SBD and .196 steem. That works out to (.5SBD x2.01491 + .196 x 2.54657) = $1.50USD.

At 100% payout, you will receive .392 steem or $1.00USD. On a 50:50 payout, you receive half in SBD (SBD price of $1) and half steem (steem price average). The fact that SBD is above $1 is the challenge and the confusing part. With it above $1, that makes the 50:50 ratio more profitable, but there is a break even point with the spread between SBD and steem that needs to be taken into consideration as well.

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Absolutely! SBD price is the determining factor. We get a better 50:50 payout when SBD price is above $1 USD. However, steem price seems to have very little to do the payout because its price cancels out each other when we convert the payout to USD in the calculation.

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I agree. I figure that as long as the price of SBD remains above $1, then a 50:50 payout is worth while. However, when it hits $1 or less, then 100% payout becomes the better option. Do you concur?

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Yes, I completely concur. That's easy to remember :)

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Thank you for this info!

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You are very welcome! Thank you for stopping by :)