How to Withdraw Smart Rewards Without Losing All of Your Next Month's Reward
One of the most obvious benefits of holding SmartCash are the Smart Rewards.
Holders of 1,000 or more SmartCash are eligible for Smart Rewards. 15% of SmartCash's block reward is allocated for Smart Rewards, which pays holders anywhere from 5 to 15% each month. As long as a holder has not had any outgoing transactions on a rewards account from the period of the 25th day of the month until the 25th day of the following month, a reward is given.
Restricting a holder from making any outgoing transactions over a month period is one of the ways Smart aims to stabilize price volatility. But as a result, all of your newly gained SmartCash is hard to move out, as it will disqualify you from the next month's reward.
I've been pondering a way to be able to spend your Smart Rewards without fully losing the following month's reward payout, and I've figured out a simple and straightforward way of achieving this.
Make multiple Smart Rewards Accounts.
To be clear, this only applies to holders who have 2,000 or more SmartCash. Holders of between 1,000 and 1,999, you will have to find a way to increase your holdings to make this part work (and with Smart hovering around $.30, why wouldn't you?!).
If you have an online wallet, you are currently restricted to two Smart Rewards wallets, so you should look into a software wallet as a way of creating more than two Smart Rewards addresses. You are able to create as many wallet addresses as you desire within the software wallet.
If a person has 5,000 SmartCash, splitting this across 5 separate Smart Rewards wallets will give them the flexibility to withdraw 1/5 of their monthly payout and still have 4 wallets eligible for the next month's reward.
While I don't plan on withdrawing too much Smart, it is nice to be able to spend some portion of the payout without completely forfeiting future rewards. This is an obvious solution, but I thought I would share this revelation.
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This is great advice.
Thanks, glad to help out :)
What happens if you only have 1000? You can never spend it haha
Keep earning Smart on Steem and continue holding until you can make a second rewards wallet ;)
I was actually thinking of doing this exact same thing coz I have just gotten over the 2000 mark!!
One correction though, the online wallet give 3 wallets for rewards. The spending wallet can also be turned into a rewards wallet by just clicking the "is rewards" option in settings. That wallet is actually where I staked my first month and i received the rewards. And I think it might not even be necessary to check the is rewards option, because i found out about that only half way through the month and I still received the rewards. But better safe than sorry....so just select the is rewards option anyways!!
Gotcha, thanks for the clarification!
yeah thats right you don't HAVE to tick the 'Is Rewards' but If you do it means you get a prompt when you try to send from that address, asking you if you are sure, as you will be making yourself ineligible for that cycle. :)
Ah okay....yeah that's what I was thinking too but never really tested the theory :D Thanks for clearing that Hannah!! :)
It would be ideal if we could direct all dividends to a separate wallet. Where anything we make with smart rewards or smartnode payments could go into a separate wallet and either be HodLed or spent without disrupting the original amount. I realize the complexities of doing it this way, and the fact that there would be no compounding interest for smartrewards, but it sure would be a nice option to circumvent this issue. Just saying... Great post.
Yeah, I hear you.
In terms of actually spending and transacting with Smart, the current setup seems counterintuitive.
Imagine the case of people who have many nodes on one address? I can see no benefits of this set up of all nodes on one address.
You mean in my hypothetical scenario or in SmartCash's current configuration? To be honest, I had no idea you were able to run many nodes on one address as I'm still building to my first node.
If that were the case, I wouldn't want to run more than 2 or 3 nodes out of one address anyway, personally speaking. That's assuming I had 4 or more nodes running. With 2 different addresses you would be able to rotate which one gets money withdrawn from it while still having 1 address be eligible for smartrewards at all times. If you had all in 1 address and you ever chose to remove any funds, all your coins would be ineligible.
It would all have to be determined/adjusted by how many nodes you have.
Thanks for the advice
I will share it with my friends to benefit
Also
Good work
@smartbot tip @colinhoward 15
Σ$$$ Tipped @colinhoward
Σ15 SMART! Comment@smartbot helpto claim. Currently the price of SmartCash in the market is$0.276 USDperSMART. Current value of the tip is$4.14 USD. To find out more about SmartCash, please visit https://smartcash.cc.@smartbot help
You can use the following commands:
balance- displays your current wallet balanceaddress- displays your deposit addresswithdraw <amount> <address>- withdraws the amount of SMART to addresstip <usernamegt; <amount>- sends the amount of SMART to usernameterms- displays terms and conditions for using @smartbot@smartbot balance
You have
Σ140 SMART(unconfirmed:Σ0 SMART).@smartbot withdraw 140 Shg8gpa8gi4SKx9DqrVMyYADkWAV3aBt9s
Usage:
withdraw <amount> <address>