SBD To STEEM Rewards Split Close To 75 / 25
As you know, there is an imbalance in the rewards ratio these days, because of the price feed bias set up by witnesses. Even if you choose, when you post, to get your rewards 50/50, in reality this is not happening. Instead of getting an equal amount of SBD and Steem Power, you get a variable amount, generated by the aforementioned price bias.
Right now, this ratio is 74.38% SBD and 25.62 Steem Power. So if your author rewards are displayed to be $10, here's what you will get:
- 25% goes to curators, so minus $2.5
- 75% goes to you, the author, $7.5
out if this $7.5, you will get
- 74.38% in SBD: 5.5785
- 25.62% in Steem Power: 1.9215
The "$" sign in front of the rewards is misleading and it's based on the convention that SBD is pegged to the dollar, which is not anymore, for at least 3 weeks now. The current market value of 1 SBD is around $14 (at the time of writing). If you want to get a glimpse of your real dollar values, you can use a tool I wrote, called steem.supply.
So, is this gap a good thing or a bad thing?
It's neither or both, if you want.
The reason witnesses are shifting the amount of rewards in SBD is exactly the broken peg. By increasing the SBD supply, the price of it should go down, closer to the peg. When the imbalances started, the total supply of SBD was around 3.5 million, now it's 4 million. At the current amounts of money traded in crypto, this supply is very easily played out (manipulated) by whales, with various goals.
Increasing SBD also increases the debt-to-ownership ratio. SBD is not backed by real dollars, but by "$1 worth of STEEM", which makes the understanding of this whole mechanism a bit difficult.
To put it shortly, if this trend of "printing" more SBD continues over a certain threshold (I have no idea now how big this threshold should be) the entire system may become unstable. At the same time, if the supply of SBD is too "small", its price could be easily manipulated by powerful players, with unexpected results. Right now we're enjoying the high price, but the same whales that made SBD go up could dump it just as fast.
Back to our split. If the trend continues, we may see entire rewards being paid in SBD. As far as I remember, this wouldn't be the first time it happens.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses
If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform):
I have been telling people that the SBD price should go back down toward $1 but it seems to be sticking around $13. I don't now how long these high SBD prices will last, especially if the Supply is going UP! We shall see!
last time it was nearly a month
Now it has clear my doubts about the data shown in steem.supply and the way 50/50 I was calculating.
@dragosroua I was just looking at my rewards, this looks more like a rip off rather than a re-balance. My past articles reward was in fact split the way you said it, but it was split that way by not receiving 50% of the SP :( .
Here's an example:
for https://steemit.com/three-nuggets/@decebal2dac/3-golden-nuggets-a-day-on-risk .
How is this even possible ?
Am I getting something wrong out of this ?
Nope. You're getting exactly the split that the price feed bias is setting: 75% SBD and 25% SP. But in absolute (fiat) terms, you're getting a lot more money, since SBD trades way above $1. If you need more SP, just buy STEEM with SBD and power up.
I am saying I don't think I understand the maths.. in the example above, I was supposed to get $30.96, what do I need to factor in to split get to 15.477 SBD and 5.174 STEEM POWER ?
Now that you pointed it, I can clearly see a shift: the value displayed in "$" in the Steemit UI is bigger than the sum of the SBD + SP. If you see you have to get $10, you get around 5+ 1.
But _in absolute terms+, the actual value in $ is way higher than what the Steemit UI shows. Just checked my stats and a post displaying an author rewards of approx $10 in Steemit, resulted in 5.7 SBD + 1.3 SP, which is roughly $75.
The display in"$" in Steemit is way off. I'll have to look more into it. I find steem.supply to be reasonably accurate, though, I don't know why :)
The math is much simpler if my post is accurate. See the first paragraph there. The one thing I'm under discussion is for me to make sure what the witness price feed is supposed to represent.
Wow, I wasn't aware of that imbalance at all. Thanks for the explanation. I use your Steem Supply every day. It is one of my most dearest Steem tools!
I think we will be more profitable if entire rewards should be paid in SBD... and we should exchange those SBD to Steem from external market and transfer it back in Steem power.
Nope, that is what will make the system unstable.
What exactly do you mean "price feed bias?" Where did you get the screenshot at the top of the page?
The price feed is spot on right now to the real price of STEEM. Where do the witnesses select this SBD/SP split you're talking about?
Have a look at http://steemd.com, there is a column called "Bias" and some witnesses have values between 300% and 8000%. The average value of this controls how much SBD is printed from the rewards pool, compared with STEEM. Witnesses control this in their witness update commands, it's a blockchain prop which is set. It's all in the white paper.
The screenshot is taken from steem.supply where I take this into account when calculating the potential rewards.
Average, not median? Only two of the top-20 witnesses have nonzero numbers for bias at the moment.
I think the prop is called "median_price_feed". There are a few more witnesses which are setting this prop (having price feed bias above 0%), me included. What you get when you call
get_median_price_feedon the blockchain is pretty much the ratio between SBD and STEEM in rewards (thebaseandquoteratio, I mean).For past 3 months i was just inactive on steemit so as soon as i came back and the value of sbd i was in the state of shock as always steem crypto coin used to have higher value than sbd but happy to see steem platform growing ..keep steeming @dragosroua
Thanks for linking to that tool you created (steem.supply) Very cool indeed. Got a shock with the account value figure including leased steem. Thought I was a rich man already!
you probably are :)
Good to know, I was wondering why it didn't seem to be 50/50 anymore. Thank you for the update.
I am Just Very Grateful that we have STEEMIT and this Great Way to participate and Share with Others. LOVE the SBD right now.