Quora Onboarding Initiative. Q- Why is the SPS budget continuously increasing in the Steem Blockchain?
Q- Why is the SPS budget continuously increasing in the Steem Blockchain?
In Steem Proposal System, anyone can propose anything and that is vetted through SP votes from the community. Based on the cumulative SP votes, the proposals are listed and then the funding is done in chronological order. There is a provision of 10% of the reward pool for SPS. The SPS was introduced in HF21/22, with an objective to make the Steem ecosystem more decentralized, so that the workers, developers, marketers, can work freely to take Steem ecosystem forward. The SPS pays the workers in SBD only. It also receives donations in SBD.
Now if you visit: https://steemworld.org/proposals, you can see the list of proposals that are currently being funded. There are now four proposals which are now being funded, but out of these four proposals, actually two are being funded, as the remaining two are return proposals.
As a rule, for proposals to be considered for funding from Steem DAO(or SPS), it has to be voted sufficiently above a return proposal. In other words, a return proposal is a minimum threshold and a proposal has to pass that threshold in terms of votes to be considered for funding from SPS.
As you can see in the list of funded proposals, the fourth one is a return proposal which has received 18.892 million SP votes from the community. The fifth one has 14.103 million SP votes. So the 5th proposal must go above 18.892 million SP to be considered for funding.
Now coming to your question, Why the SPS budget is continuously increasing? The reasons are:-
- On a daily basis, a part of the reward pool(10%) is being added to the SPS budget. The approximate figure at the moment is (8468 STEEM ~ 1660 SBD).
- Some people are also donating to SPS budget.
- Every time you list a proposal you need to pay a fee of 10 SBD.
At the moment the SPS is funding two active proposals(out of the four active proposals). The sum of these two proposals is 280 SBD per day(100+180). The remaining two are return proposals, so the fund is being returned back to the SPS budget.
So as you can see there is an inflow of 1660 SBD(approximately)per day from the Reward pool, donations, listing fees(10 SBD), etc. the budget is increasing and as the community has voted only four proposals to be funded(out of which two return proposals), so the net inflow is much more than the net outflow. That is why the SPS budget is increasing.
Please do note that if SPS will have sufficient budget and if the community vote a sufficient number of proposals, then as long as the budget is available, the proposals will be funded in full or part. SPS funds the voted proposals at the rate of 1/100th of the total SPS budget on a daily basis. At the moment the total SPS budget is 212558 SBD and the daily SPS budget is 2126 SBD. The actual figure of funding to different proposals stands at 280 SBD per day. So the available daily budget in SPS is much more than the actual consumption of the budget. It is up to the Steem community to how they vote and how they want the proposals to be funded from SPS. At the moment, there is a net saving of the SPS budget. That is the reason why the SPS budget is continuously increasing.