SBD To STEEM Rewards Split Close To 75 / 25

in steem •  last month

Screen Shot 2017-12-21 at 9.33.57 AM.png


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.


Dragos Roua


You can also vote for me as witness here:
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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!

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last time it was nearly a month

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@lennstar last time? When?

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In the summer? Can't remember. Since I joined in late 2016 there were 3 longer/higher SBD spikes.

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:

Past Payouts $39.86
- Author $30.96
- Curators $8.91

Actual Author returns:
15.477 SBD, and 5.174 STEEM POWER 

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 ?

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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.

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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 ?

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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 :)

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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.

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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?

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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.

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Average, not median? Only two of the top-20 witnesses have nonzero numbers for bias at the moment.

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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_feed on the blockchain is pretty much the ratio between SBD and STEEM in rewards (the base and quote ratio, 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!

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you probably are :)

"virtual_supply": "262,915,316.543 STEEM"
"current_supply": "261,537,625.858 STEEM"
"current_sbd_supply": "4,050,410.615 SBD"

When the SBD drops back to $1 the virtual supply increases by 2.5 million STEEM to 265.5 million.
That's a 1% instant inflation. No problem in my opinion.

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Good to know, I was wondering why it didn't seem to be 50/50 anymore. Thank you for the update.

@dragosroua sir I am afraid with whales dumping SBD, the steem will also collapse back to 1$ or may be below. How will this effect the steemit, you of all people know the consequences....
My question is "Is there a way to create buffer between Steem and SBD to counter SBD Dump???
My regards @xabi

I want more rewards. So I steem steem and steem. Follow and upvoted you. Thanks for sharing the post

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Self voting doesn't help :)

This is interesting, it is always difficult to minnows to understand payout.

I am Just Very Grateful that we have STEEMIT and this Great Way to participate and Share with Others. LOVE the SBD right now.

Yes too little author rewards are being given as STEEM power nowadays. So the only way to improve STEEM power is to convert the SBDs you get into STEEM power. However, even that ratio is dropping now. A few days ago, I used to get around 7 STEEM for 1 SBD, now its merely around 3.5.

its right @dragosroua.Thanks for good topic sharing. i like your post and following.

All options are open.. I just change to steem as much as I can.. because I believe in Steem and not in SBD... this is just a bonus we have now..

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SBD may be here for the long run as well. The more I think about it, the most interesting this "gimmick" is. I don't think I've seen something similar in any other token.

nice post

I always that the value shown at the bottom is in USD until now. Thanks for the info

its really interesting i also check now in ur given steem.supply link and i think now the more chances to earen sbd last time i checked it to see ur post may be it was 65% and now is more high

out if this $7.5, you will get

74.38% in SBD: 5.5785
25.62% in Steem Power: 1.9215

Isnt that how t is supposed to be?

One steem is 3$ today, so a 6SBD and 2 SP split is exactly 50/50.

That the SBD price is not 1$ is a completely other topic.

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One steem is 3$ today, so a 6SBD and 2 SP split is exactly 50/50.

Can you do that math again for me, please? I don't think I follow...

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For example author payout is 10$.

Goal is to give you a payout of 50% SBD and 50% SP.

So you get 5$ worth in SBD and 5$ worth in SP.

Or: 5 SBD and 5$/ 3$perSP = 1,66SP.

Or for absolute amounts 75% in SBD and 25% in SP.

A year back you would get 1 SBD and 5 steem(power), when the price was at 20cents.

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Goal is to give you a payout of 50% SBD and 50% SP.

No, it's not. Goal is to give 75% SBD and 25% SP. That's the whole reason witnesses are adjusting their price feeds. To print more SBD.

So you get 5$ worth in SBD and 5$ worth in SP.

Nope. You get 75% of the entire value of your reward in SBD and the rest in SP. Please have a look at your own rewards to see how this plays out.

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Goal is to give 75% SBD and 25% SP.

Then why can I choose between 100% SP and 50/50???

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The UI isn't updated in real time with the rewards ratio generated by the price feed bias, so it's stuck at 50/50. Probably they thought it wouldn't happen that often or to such an extent.

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Means my math was right but the basis it is placed on is shown wrong. :P
Thats too bad. It should really show what you get.

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Yeah, you're not the only one thinking like that.

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Please consider reading my post about this subject. It gives an alternative explanation that makes sense but I'm still confirming a few details.

soon it can reach 100/0 hahh can this happen too

I actually noticed the alteration in the 50:50 plan as well.
Could it be a good news?. Maybe

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 wasn't on Steemit when it happened first. How did it scaled through?
I believe in a long term investment online.

It would suck if you were getting paid in only SBD and whales would dump it.

wow so much influence on the ratio too

If the trend continues, we may see entire rewards being paid in SBD.

Why not do this now? I mean, even the 60-40 rule wasn't helping, why not focus fully on SBD?

that's why low steem is coming nothing to worry about until the prices of sbd are up

Ah I've been meaning to ask you. After my analysis I don't think your price feed bias is taking effect as it uses the median price. The % split is not because the bias, but because of the STEEM market price, isn't that right?

https://steemd.com/witnesses lists only a few that have set prices higher than market. Is my understanding correct?

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The split is calculated based on the median price feed generated by witnesses, which takes into account the aforementioned bias.

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Right, but the median price feed is still the market price according to my reading of the list (of ~3.2 USD/steem)?

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You mean the ratio between SBD and STEEM? Yes, it's in the ballpark. But 1-2 weeks ago, it was really imbalanced. A lot of arbitraging opportunities.

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I'm not sure what you mean by the ratio (payout ratio?). I'm solely fixed on the price feed.

According to my following of the price feed, the top witnesses' median price has never been higher than the USD STEEM market price right? (Maybe I didn't check last week, but that's my understanding)

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I'm not sure what you mean by the ratio (payout ratio?).

The ratio between SBD and STEEM. The median_price_feed returned by any call to the blockchain will return an array with two keys: base and quote. The price feed bias sets the ratio between these two values. It's like trading a pair, but instead of EUR/USD, you trade SBD/STEEM, and one is base, the other is quote.

I'm sorry but I don't know how to put it more clear than that :)

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The price feed is not about the SBD/STEEM price though. This is probably the main point of disconnect. It's about the USD/STEEM price.

After going back and reading the white paper, this isn't explicitly mentioned which I find odd. But because the point is to establish the conversion rate of SBD to STEEM and the meaning of "SBD=1 USD worth of steem" (from conversion point of view), that is my inference.

If I'm wrong about this I'll need to redo my analysis, but it's the only thing that makes sense to me.

And of course, thank you for taking the time to respond to my questions :)

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The price feed is not about the SBD/STEEM price though. This is probably the main point of disconnect. It's about the USD/STEEM price.

The price feed is about STEEM to SBD price, but in an ideal world, 1 SBD should equal 1 USD. We don't live in an ideal world, hence these odd things that you see.

I've read a number of times in the past few weeks about SBD being "printed" and being associated with debt. Can anyone give a thorough explanation of this or perhaps link to a good post on it? It's not making sense to me.

I see this situation as money flowing out of the system. Many of us are selling SBD for BTC or whatever. From authors (miners) to traders. Am I right and is this good or bad? I don't know.

Ps: these words are the ones that are most often repeated in crypto currency world: I don't know :)

Hi. Do you know where can I find the current ratio for this? I used to be on your steem.supply page. But I cant find it anymore.

Rob