How STEEM and SBD Prices Affect Your Rewards

STEEMIANS, new as I am here, I will try to illustrate how the difference in the Prices of STEEM and SBD affect your rewards. This subject was inspired by a post 10 days ago by @sandalphon where he questioned if the current rewards calculation is outdated. In his post @sandalphon showed how, with the big disparity between the prices of STEEM and SBD, our net reward actually comes out to just a little over 40% of the original rewards amount.

Since @sandalphon's post was over 10 days ago already, my daughter said I cannot Resteem it anymore. Nevertheless, his computation on how the 40% was arrived at is shown below:

TOTAL REWARDS EARNED = 100.00
75% Authorship Rewards = 75.00
50% SBD = 37.50
50% STEEM POWER = 17.77
TOTAL REWARDS DISTRIBUTED = 40.71 in SBD

The Assumptions used here are:
Steem = 2.11 USD
SBD=11.70 USD
SBD/Steem Ratio=5.54
Hence: 37.50/2.11=17.77

It took a while for me to fully understand the computations above. But when I did, I realized that Steemians should be made to realize that when computing our cash outs, we can only expect to realize 40.71% of our rewards net of curators' fee of 25%. That's a big difference. I thought before that when I see the amounts earned by my posts, all I have to do is deduct the 25% curator's fee and the rest is mine. But not so. Somewhere, there's about 35% or 35 SBD that's floating around.

However, there's nothing we can do about it. This is the current practice of Rewards sharing in Steemit so we can only hope that management does some adjustments to our benefit in the near future.

This brings us back to my original topic and that is how Steem and SBD affect your rewards. In the example above by @sandalphon, the effect of the disparity of prices made us lose about 35% of our rewards. However, the prices change every hour and to my surprise, Steem and SBD sometimes move in different direction, and sometimes one moves faster than the other.

As of this writing, 3:08 am Philippine time, December 29, 2017 the price of Steem is 2.7176 USD and SBD is 8.43 USD. Notice that the difference between the 2 had become smaller. SBD minus Steem is 5.7124 USD compared to the 9.59 USD difference in the example of @sandalphon. How then does this affect your earnings? Using the same format as the example above, I came up with the following:

TOTAL REWARDS EARNED = 100.00
75% Authorship Rewards = 75.00
50% SBD = 37.50
50% STEEM POWER = 13.80
TOTAL REWARDS DISTRIBUTED = 41.41 IN SBD

Voila. There is now an increase in our net rewards from 40.71 SBD to 41.41.

What can we deduce from this? First, it points out to the fact that the closer the price difference between Steem and SBD, the higher our rewards become under the present system and the farther the price difference is the lower our rewards are. Second, when cashing out we should always be aware of the prices of the 2 so we know if it is the right time or just wait a little more.

I hope you find something worthwhile with the presentation above. My thanks to @sandalphon for making things clearer for me, and hopefully I did too for you.