$$$ tutorial: how do you get steemit rewards? $$$
1. Posting rewards
2. Curration rewards
3. commitment rewards
4. Savings rewards
1. Posting Rewards
Earn STEEM every time you post content valued by others.
Every post submitted to STEEM is voted upon by users with a vested interest in the long-term value of STEEM. The more votes a post receives the more money the poster makes. Posters are also rewarded anytime someone inspires others to create replies that also get up voted.
Rewarding Discussion
One of the primary goals of Steem’s reward system is to produce the best discussions on the internet. Each and every year 10% of the market capitalization of Steem is distributed to users submitting, voting on, and discussing content. At the size of Bitcoin this could be as much as $1.75 million dollars per day being given to top contributors.
Payout Distribution
The actual distribution will depend upon the voting patterns of users, but we suspect that the vast majority of the rewards will be distributed to the most popular content. Steem weighs payouts proportional to n2 the amount of vesting STEEM voting for a post. In other words, post number x would receive a payout proportional to votes[x]2/ sum(votes[0…n])2).Zipf’s Law is one of those empirical rules that characterize a surprising range of real-world phenomena remarkably well. It says that if we order some large collection by size or popularity, the second element in the collection will be about half the measure of the first one, the third one will be about one-third the measure of the first one, and so on. In general, the k th-ranked item will measure about 1/k of the first one.Taking popularity as a rough measure of value, then the value of each individual item is given by Zipf’s Law. That is, if we have a million items, then the most popular 100 will contribute a third of the total value, the next 10,000 another third, and the remaining 989,900 the final third. The value of the collection of n items is proportional to log( n ).The impact of this voting and payout distribution is to offer large bounties for good content while still rewarding smaller players for their long-tail contribution.
Rewarding Parent Posts
Good discussion requires back and forth posting. When you reply to someone else, they get 50% of any payout you receive in that thread. This rule applies up to 6 levels deep. Starting a big discussion greatly rewards the parent poster.Failure to properly nest your posts in the discussion is a good way to get down voted.
Payouts
When a post is receives a payout it takes the form of 50% STEEM backed dollars, SBD, and 50% vesting STEEM. The vesting STEEM give the user increased voting and transaction power while the SBD gives the user an immediate benefit in a stable currency. Both vesting STEEM and SBD pay interest for holding them rather than selling.
Down Voting Posts
Where as up voting posts benefits an individual at the expense of everyone else, down voting benefits everyone else at the expense of the individual doing the voting. In effect, a down vote represents a lost opportunity to vote for yourself. In a perfect world we would reward the least-down voted content because such a system cannot be cheated.The reality is that attitude matters. It feels better supporting something you like than resisting that which you don’t like. It also requires more work to flag all of the bad content than to identify the relatively small amount of quality content.
Voting Algorithm
When a user posts on Steem others are given an opportunity to vote for (or against) the post. Users votes are weighted by the amount of vesting STEEM held in their account. The goal of the voting algorithm is to reward posts with the greatest consensus or network effect. We know that network effect grows on the order of n2 the number of participants; therefore, rewards are distributed proportional to voting weight2.This algorithm has been designed to discourage voting for yourself and reward teeming up with others. If votes were not scored by weight2 then users would gain more by voting for themselves than by voting with others.
Limited Voting Rate
Each account is rate limited on how frequently it can vote in order to prevent automated scripts from having more effective power than manual voting. This rate limiting is implemented by dividing the voting weight over all votes by an account in a 24 hour period. Someone who votes for 100 posts a day will have each vote worth about 1% of their weight.Attempts to bypass the rate limiting through the creation of multiple accounts will divide the stake and give the attacker no additional power.
Encourage Distribution of Voting
Each account is only allowed to vote with up to 5% of its voting weight on any given post. To maximize its voting power, an account must vote for at least 20 items per day.
24 hour Review Period
After a post receives its first vote, a 24 hour countdown begins during which additional votes may be cast. Each additional vote extends the countdown such that the final payout time is a vote-weighted average of 24 hours after each vote. The pending payout is used to identify trending posts. These posts get promoted to the front page where they receive the most scrutiny.Anyone attempting to selfishly vote for themselves will find other users with a vested interest in the value of their STEEM will be quick to vote them down.
The Story of the Crab Bucket
A man was walking along the beach and saw another man fishing in the surf with a bait bucket beside him. As he drew closer, he saw that the bait bucket had no lid and had live crabs inside.“Why don’t you cover your bait bucket so the crabs won’t escape?”, he said.“You don’t understand.”, the man replied, “If there is one crab in the bucket it would surely crawl out very quickly. However, when there are many crabs in the bucket, if one tries to crawl up the side, the others grab hold of it and pull it back down so that it will share the same fate as the rest of them.”So it is with people. If one tries to do something different, get better grades, improve herself, escape her environment, or dream big dreams, other people will try to drag her back down to share their fate.
There is another way to interpret The Story of the Crab Bucket. People don’t like it when other people get something they cannot have. Anyone attempting to get ahead by voting for themselves will be actively resisted and voted against. Some crabs may escape with ill-gotten STEEM, but the vast majority will be kept in the bucket and that is all that matters.
Voting Guide
The goal STEEM is to be an open platform for civilized discourse on quality content. Users who vote according to this guide will help maximize the value of the platform and the value of their STEEM.The following definition of good content is borrowed from hubski.com.
The best responses are those that generate thoughtful, civil conversation. You don’t have to agree with others, but be respectful. Good responses are not necessarily popular perspectives, but are well-supported ones.If you assert a strong opinion, try to back it up with facts, or an insightful rationale.In addition to defining what content is desired, the it is also useful to provide guidance on undesirable content. Any submissions that meet one or more of the following criteria (borrowed from reddit.com) should be voted down.NSFW (Not Safe For Work) content
Encourages or incites violence
Threatens, harasses, or bullies or encourages others to do so
Impersonates someone in a misleading or deceptive manner
Is spam
Links to viruses or malware
Is improperly categorized or not relevant to the conversation
As a general rule users should vote based upon whether or not a particular piece of content adds or removes value to the discussion. Sometimes this means voting for people who express opinions you disagree with. A community that devolves into group-think will lose value, so it is in the best interest of everyone to vote according to the bigger picture.
_____ _____ _____
2. Curation Rewards
Earn STEEM by being the first to upvote popular content
Every post submitted to STEEM is voted upon by users. These votes help other users identify content that is worth their limited attention and bring significant value to the platform. Steem recognizes that sifting through the abundance of new submissions is work that deserves to be rewarded.
Voting on Posts
Users with vesting STEEM have the ability to vote on posts. Voting Power is rate-limited and decays by up to 5% every time a vote is cast. Voting Power regenerates to 100% over 24 hours. Your ability to impact the payouts a post receives is based upon your current Voting Power times the total vesting STEEM and is known as STEEM Power.To maximize total STEEM Power applied to posts, users should vote on at least 20 posts per day. Voting on more than 20 posts per day has exponentially decreasing influence on total STEEM Power used.
How it Works
Every time a post gets paid, 50% of the payout is directed toward those who contributed the most to increasing the posts payout. To maximize your potential payout from voting you should follow these simple rules:
- Only vote on posts that you believe others will also vote for.
- Vote as early as possible after the content is posted.
- Don’t vote on content that is already popular
- Acquire as much vesting STEEM Power as possible
The less STEEM Power you have the more important it is for you to focus your votes on a few good posts rather than spreading your vote thin. In particular, users with small amounts of vesting STEEM should:
- Vote on content others haven’t voted for, to maximize the percentage increase in voting
- Vote on fewer posts, the more you vote the more diluted your STEEM Power.
Challenges with Rewarding Voting
The saying you “get what you pay for” has never been more true. In this case we must be “careful what we pay for” or we might not get the result that we want. If Steem simply paid people for voting then tech-savy individuals would simply vote for everything to maximize their payout. This type of behavior would add no new information and therefore no value to the platform. The reward algorithm must be designed to reward information while preventing gaming and automation.
Reward Percentage Increase in Voting
The algorithm has been carefully designed to minimize the impact of automated voting algorithms. In particular, we want to reward voting on posts that the network has the “least information” about. This means that being the first person to vote for a post gives you the greatest possible weight for your STEEM Power.A human has a better chance of predicting the success of a random post with no votes than a computer algorithm. At best a computer algorithm could use historic performance of the poster to guess. If an algorithm is used, it will have to be a sophisticated algorithm that actually does add some value. After all, the algorithm isn’t able to vote on everything and gets exponentially weaker more it dilutes its vote.Someone who adds 1 vote to a post that already has 99 votes will get a weight of .01. On the other hand, someone who adds 99 votes to a post that already has 99 votes will end up with a weight of 25.The order of voting matters. Given 4 users with 1 vote, and 1 user with 4 votes the payout received by individual voters can be dramatically different. If the 1 vote users vote first, then their weights will be:
Vote: 1, 1, 1, 1, 4
Weights: 100, 25, 9, 6, 25
Percent: 60%, 15%, 5%, 3%, 15%
If the order were reversed then the weights would be:
Vote: 4, 1, 1, 1, 1
Weights: 100, 4, 3, 2, 2
Percent: 90%, 3%, 2%, 2%, 2%
Reward Vote Concentration
Human voters can only process so much content per day. A script that votes on everything is guaranteed to have a much smaller percentage of the winning posts than someone who applies some human intuition. This vote concentration is rewarded automatically by paying out rewards based upon percentage increase in total votes, with one small caveat: the first voters can have very large percentage increases with very small stake.Imagine someone who has 4 accounts with STEEM Power of 1, 2, 3 and 6. If they vote consecutively, then each vote after the first would see a 50% increase, with the first vote seeing 100%. If we were to sum the weights based solely on (percent increase)2, the attacker would start out with 1.75 using this strategy compared to starting out with 1.0 by voting from one account with 12 STEEM Power.Ideally, it should always be better to vote with 1 account than to divide up your stake and vote from multiple accounts. To achieve this we multiply the (percent increase)2 by the STEEM power of the vote. This gives the following vote weights:
Multiple Accounts: 1 + 1 + 1.5 + 3 => 6.5
Single Account: 12
The conclusion is that someone voting with all of their stake at once gets twice the final payout of the same individual voting multiple times through multiple accounts. It is true that the rich get richer when viewed from the perspective of an individual post, but when viewed as a whole the playing field is much more even. Regardless of how rich someone is, they can only evaluate so much content. The rich individual also has the most to lose from poor voting.
The Math
The network will automatically divide the 50% payout among all users who voted for a post on a pro-rata basis using the following equation to measure the weight of each voter:
let total_vote_reward = 50% of the content reward
let steem_power = the total STEEM power of the vote
let current_total_steem_power = the combined STEEM power of all past votes
let new_total_steem_power = current_total_steem_power + steem_power;
let vote_payout_weight = steem_power * (steem_power/new_total_steem_power)^2
let total_vote_payout_weight = sum vote_payout_weight for all votes on the post
let vote_payout = total_vote_reward * vote_payout_weight / total_vote_payout_weight
Disclaimer
Any numbers or equations presented above are notional and may contain errors. The actual rewards
are defined the by the open source software. It is your responsiblity to review the code or hire
someone to review it for you._____ _____ _____
3. Commitment Rewards
Steem rewards long-term commitment!
STEEM is a token that serves as the fundamental unit of account. STEEM is required to transact on the network and gives users the power to vote on posts. Users who commit to STEEM for a year or more earn interest and are protected from dilution.
Committed Community
A committed community is the bedrock of a stable currency. Steem creates economic incentives for 90% of STEEM to be locked up and vesting for at least one year at all times. Users are required to hold vesting STEEM in order to transact and vote.
Earn Interest
Anytime less than 90% of STEEM is vesting, the network gradually transfers value from liquid STEEM to vesting STEEM via interest payments. All else being equal, any deviation from 90% vesting will corrected by about 50% per year through interest payments. Interest is paid by the creation of new STEEM so accounts holding liquid STEEM never see their balance decrease.
No Dilution
In addition to earning interest, vesting STEEM is also protected from most dilution any time less than 90% of STEEM is vesting. While the number of STEEM may always be increasing, the percent of total STEEM held by vesting STEEM holders usually remains flat or grows. Given a constant market capitalization, the value of an account holding vesting STEEM will increase unless more than 90% of all STEEM is vesting.The combination of dilution protection and earning interest make vesting STEEM the first “high yield”, “dividend-paying”, “deflationary” crypto-asset.
Note: if more than 90% of STEEM is vesting then there will be a negative inflation-adjusted interest rate on vesting STEEM
Resitrictions on Vesting STEEM (VESTS)
Vesting STEEM is non-transferrable and non-divisible. It can only be converted back to STEEM via 104 equal weekly installments.
_____ _____ _____
4. Savings Rewards
Steem Dollar rewards bring stability to you
STEEM Dollars (SBD) are a new approach to creating a robust, counter-party free, pegged currency. Holding SBD pays interest. SBD is always convertible to $1.00 worth of STEEM.
Background
Cryptocurrencies are unique in that they are the only digital asset that is not someone else’s liability. They are fungible, decentralized, and as valuable as the network of users that support them. Historically they have suffered from very high volatility and are mostly held for speculative purposes.STEEM borrows a concept from the startup world known as a convertible note. Convertible notes come in many forms, but the basic idea is that they are worth $1.00 of shares at a future price. STEEM Backed Dollars (SBD) convert to a crypto-currency rather than to shares in a company. The price used to convert SBD to STEEM is derived from a reliable decentralized price feed.
Earn Interest on Savings
SBD pays users who hold it interest. This interest rate ensures that SBD can be safely held with minimal opportunity cost. The actual interest rate can be changed by consensus of the active miners. This gives STEEM the flexibility to adjust the interest rate to be appropriate for market conditions.
Where does Interest come from?
Steem creates new SBD to pay interest on existing SBD. This increases the debt-to-equity ratio of STEEM. STEEM creates financial incentives for 90% of all virtual STEEM to be vesting for at least a year. The virtual STEEM supply is the amount of STEEM that would exist if all SBD were converted to STEEM at the current feed price. The impact of creating new SBD to pay interest is to increase the virtual STEEM supply and reduce the percent of vesting STEEM. As the percent of vesting STEEM falls the rate of return paid to vesting STEEM automatically increases to attract new long-term capital.If we ignore the accounting details, the economic impact of paying SBD interest is to transfer value from holders of non-vesting STEEM to SBD holders. This value transfer benefits both parties because holders of SBD are effectively extending credit to Steem. This credit gives STEEM holders leverage that increases their profits when STEEM rises and increases losses when it falls.
Decentralized Price Feed
A price feed is produced by 21 active miners. Once per hour the median published feed is logged. The median of all feeds logged over the past week is used to determine the rate at which SBD converts to STEEM. With this process it takes 51% of active miners colluding for 3 and a half days to meaningfully corrupt the feed. It is safe to say that STEEM holders with a vested interest in the future value of STEEM will be very pro-active in voting for reliable miners to produce feeds.
Conversion Requests
When a user requests a conversion from SBD to STEEM their request is delayed for 1 week and then executed at the future moving median exchange rate. This process ensures that no one can use the feed delay against the network.Conversion requests will primarily be used by speculators looking to buy large quantities of STEEM without moving the market.
Liquid Market
Most users will prefer to use the internal market to perform instantaneous trades between STEEM and SBD. The internal market will track the real-time price of STEEM much more reliably because professional traders can take advantage of arbitrage opportunities. To further enhance the quality of the market, the STEEM network rewards individuals who provide liquidity by leaving orders on the book.
Merchants
SBD is a perfect token for merchants to accept because it is backed by a liquid market and can be reliably converted to $1.00 worth of value in their bank.
Default Risk
No system is perfectly secure against default. A hyper-inflationary collapse of the STEEM access token could create a situation where all SBD must be converted to STEEM at a value less than $1.00. The STEEM network minimizes the likelihood of this happening by economically incentivising 90% of all STEEM to be committed for at least a year. This means the debt-to-equity ratio of the STEEM network is normally under 10%. Even a 50% fall in the value of STEEM would only result in a 20% debt-to-equity ratio which is still conservative by financial industry standards. The Steem network automatically increases incentives for long-term investment in STEEM as the debt to equity ratio increases.Steem is a decentralized network following the rules of a blockchain. Steemit, Inc does not and cannot gaurantee the value of SBD or STEEM. If you choose to hold these assets you do so at your own risk. It is possible for them to lose any and all value they might have.