PSA: Don't Select 100% SP Rewards!
Power Up 100% Rewards Are Currently Broken
Due to the market price of Steem Dollars, the blockchain is not awarding post rewards as intended. The default post reward option of 50% SP and 50% SBD is currently distributing much more value in the form of SBDs.
For example... a post of mine just reached its payout:
I received 24.005 SBD and 19.090 SP for my post. In theory, those would be roughly equivalent in terms of value. But let's look at the market price of Steem Dollars (I like to use http://www.steemdollar.com/ for this).
As I write this, Steem Dollars are worth a whopping $1.77! I received around $42.48 worth of SBD for my post. Meanwhile, the 19.090 SP that I received would only be worth $22.90 at the current STEEM price of $1.20.
To put that into perspective, the liquid reward alone is almost the amount that steemit.com displays as my portion of the post rewards:
But let's go ahead and put a finer point on this... Had I elected to Power Up 100% of my rewards, I would have received 38.180 SP for my post. At $1.20 per STEEM, that's worth about $45.81. Not much more than the value of the SBD reward alone!
Choosing to receive 100% of my reward as SP would have cost me $19.57 of value!
How long will this last?
This situation will continue as long as the market price of SBD remains well above $1.
What to do in the mean time.
In order to retain 100% of your earnings from posting on Steemit, choose the Default (50% / 50%) option for your post rewards. If you want to Power Up everything you make, that's great! Just head on over to the internal market and buy STEEM with those SBD.
And then Power Up a much larger sum of STEEM!
This is absolutely the right thing to do. I'd like to add one minor caveat though - if the price suddenly pumps by a lot during your payout window, you might actually lose out as the price feed takes 3 days to catch up. I was caught out by this as I had a large payout due around May 8th - when Steem had pumped by 200% in 48 hours, yet the price feed was only showing a <50% increase. The SBDs at the time were 60% over, so I effectively received less half the Steem as I would have had I gone 100% SP. Happened again around May 16th, would have made 20% more going the 100% SP route. Of course, this is a corner case, and you should definitely go 50-50. But if you are expecting a major pump one week from post creation - more than the SBD premium - 100% SP might be the better option. Same applies if you expect a major SBD dump, too.
Good point. But that is obviously a unique situation. :)
And if you're able to accurately predict a major SBD dump a week in advance, I think you're probably not the expected audience for this post. ;)
No one could predict what those crazy SBD traders on Poloniex will do next!
Thank you for reminding us
rule of thumb.
when the price of steem (on average) is going UP...
split your rewards 50/50
When it's going DOWN
don't split...take %100
it's not a bug...it's a FEATURE.
I like that take on it. It's kind of a semi-automatic stabilizer.
Kinda sorta...when people help.
Nice catch! That information can certainly come in handy.
Thanks for the information!
Awesome hint ty so much 😄👍👍👍
Some good info here - Thank You! I was wondering what exactly those things meant...
Why didn't I read this post 32 mins ago because I just sent out a Blog! Lol. Thanks for the great catch though. Added to my Following. DR
Very good information, it surely is a good heads up to everyone of us. Thanks for sharing... followed you
I didn't realise the difference was that significant. It's worth the extra step on the internal market!