Why Choosing the 50/50 Author Payout Is a Good Thing
I almost decided not to post this video since I'm not in my peak state of mind. But, I'm publishing it anyways because it still adds value to others and also exposes a side of me that is a bit more somber in nature.
It's getting towards the start of November which means colder weather and shorter spans of daylight. Pretty soon it'll start getting dark by 5pm EST which means I'll need to start shooting more content indoors instead of out.
The 50/50 author payout is the default setting in Steemit accounts across the board. What does that mean exactly. Well, it means that when you publish a post, your rewards will get distributed to your wallet consisting of 50% liquid rewards, and 50% vested rewards aka Steem Power.
Why is this a good thing you may ask. It's pretty straight forward right now especially in light of the current market conditions. As of today, October 2018, the value of SBD or Steem Backed Dollars hovers around $1.00 give or take some change. The value of Steem sits at around $0.80 give or take some pennies.
So, receiving author rewards based of the 50/50 payout is beneficial in that you can trade your SBD for Steem on the internal market. Since SBD's have a higher value right now than Steem, that means you are receiving more Steem than the amount of SBD's you are selling.
I like this because Steem is a more valuable token in the long run in my opinion. Plus, even when the price of Steem goes higher than the price of SBD's, having liquid rewards in your wallet is nice for when you want to make easy transactions for instance purchase Steem Monsters packs or send a gift to someone.
Getting paid using the 100% Steem Power option will get you paid, but not as much as the 50/50 option, especially with the price of Steem lower than the price of SBD's. Lately I have been accumulating SBD's and then when I reach around 50 of them I sell them on the internal market for Steem.
I enjoy having a mixture of vested Steem as well as liquid Steem in my payouts because I can grow my Steem Power and Steem at the same time and watch them grow simultaneously. Now, I am not saying that this strategy works for everyone, I'm just explaining what I like to do with my post payouts.
I'm sure there are other reasons that I missed regarding the 50/50 payout structure that are beneficial to users. If you think of some, mention them below and let's keep this conversation going.
Let me know how you like to orchestrate your author rewards and which option you feel is better for the way you like to "Steem on".
If you enjoyed this post, please feel free to smack that upvote button.
Can't wait to see you next time, friend. Until then... stay humble and stay hungry.
Never quit and always believe
-Ken
P.S. What is your favorite thing to do around the holiday season?
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great vid man.
i miss the steem payouts. because i agree. steem is a much more valuable token to me rather than sbd.
Posted using Partiko iOS
I miss the Steem payouts too but thankfully we have the internal market that I think not too many Steemians are privy to yet.
Posted using Partiko iOS
great point! gave me a good idea for steemsavvy ;) thanks man.
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You're in North East Ohio? So am I (sometimes considered North East). It's a small world after all. At first I thought this was about the 50/50 creator/curation rewards. I don't like self up voting personally. I agree with having some liquid rewards. I hope your day got better. Cheers.
Hi @to7 👋🏻 I live in Elyria. What city are you in? Yeah, I was self voting a lot but lately I’ve been too busy voting on others content. My day got better after eating dinner and drinking some coffee 😊 Appreciate your concern.
-Ken
Posted using Partiko iOS
I live outside of Steubenville. Seems you're more North and I'm more East haha. Glad to hear that your day got better. Food and coffee always seem to help level things out a bit.
gracias a su publicación, acabo de iniciar en steemit y me estaba preguntado lo del 50/50 ahora lo tengo mil gracias
Glad you enjoyed it @luis4021. Welcome to Steemit!
thanks for your opinions ! :)
Posted using Partiko Android
Right on, @bluengel. I see you are reaching for that #1 spot on the @partiko leaderboard :)
thanks to all steemians :)
with ♥ LOVE ♩♬
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곰돌이가 @bluengel님의 소중한 댓글에 $0.018을 보팅해서 $0.005을 살려드리고 가요. 곰돌이가 지금까지 총 1209번 $17.411을 보팅해서 $15.086을 구했습니다. @gomdory 곰도뤼~
곰도뤼 고마워용~♥
행복한 화욜 보내셔용~^^
Posted using Partiko Android
곰돌이가 @bluengel님의 소중한 댓글에 시세변동을 감안하여 $0.002을 보팅해서 $0.021을 지켜드리고 가요. 곰돌이가 지금까지 총 1208번 $17.393을 보팅해서 $15.081을 구했습니다. @gomdory 곰도뤼~
곰도뤼 댓글 구출 콤보 고마워용~♥
행복한 화욜 보내셔용~^^
Posted using Partiko Android
Thank you for posting this @kenmelendez.. I didn't realize this.
I recently switched to Powering Up 100% of my rewards but I think I'll switch back now. I was concerned that buying Steem with SBD's is a 'taxable event' in the United States and that I'd get a headache trying to report all of my trades to the IRS.
@beunconstrained wrote about this on his @kod3g3ar account:
US Tax Payers and Crypto Don't Get Along That Well
Let me chime in with some more information. A few weeks back, my accountant & I completed the 2017 tax returns (yeh, late extensions... I know...) but in the process the conversation covered a lot of crypto transactions that were reported. We spoke about mining, specifically. This is not advice to you. You should seek counsel with your own tax professional. I'll just let you know what was told to me.
My accountant was sensitive to two things - the fact that as of the January 1st 2018 date, following the implementation of the recent Tax Reform bill into law, there is a small variation in regards to the taxable status of "like kind" transactions. In the past, these were vague and most people in the crypto community would understand that moving crypto to crypto (ie. BTC to ETH or LTC to XRP or BTC to STEEM, etc.) were not taxable events. That is they didn't trigger the reporting of taxable gain or loss at the time the transaction was done. This pretty much is uniformly understood that now these transactions are taxable events, as the exclusion under law was narrowed to be specific to real estate (ie. 1031) exchanges.
Additionally my accountant was very specific with me in regards to mining. When income is realized at the time of mining it is, in his opinion, a taxable event. This would mean that as revenue is recognized in STEEM, it creates a taxable event. The question really would come down to how to establish the value of that. Since Steem revenue is seen in micro-sized curation rewards, etc. it would be reasonable to assume that each reward needs to be documented, and the price of Steem at the time of the reward would be the basis of determining taxable gains or losses. Clearly this is a documentation nightmare. However that doesn't matter to the IRS. You document the transactions and report them according to law. No exceptions.
So it may have impact BOTH to the recognition of gains/losses at the time of receiving mining rewards, but also at the time of "like kind" transactions. Although there are few precedents here that have been tested, it is my accountants reading that both would apply here and reporting should cover both mining (ie. curation, etc. rewards) and also "Power UPs" or "like kind" transactions as both may create a taxable event that must be reported.
Note that all of this information is publicly available via the Steem blockchain. That means that IRS have access to the same transaction logs that we all do, so transparency would be the key (IMHO) in reporting here.
You may not like to hear this information, but don't shoot the messenger. I'm just passing on what I was told. YMMV.
I am not sure how they would monetize the app but there is a desparate need for an app that will help U.S. Steemians report their Steem-based transactions to the IRS @beunconstrained.
Hopefully one of the developers like @blockbrothers @exyle can make an app for this. I would be willing to pay a modest fee for this and I think many others would too.
Calculatimg Steem-based transactions manually so that they can be reported to the IRS will be a nightmare!!!
My accountant and I reviewed a number of potential solutions. This appears to be the best to date:
https://www.cointracker.io/
Now the key is for us to lobby them to support Steem. But if the Steem community only represents a minute portion of crypto transactions, they won't invest the $ in labor to support it. Also the fact that it doesn't feature on the exchanges that they support will be a deterrent. I am inclined to suggest that the value of Steem is going to be limited until there is some more mainstream adoption here, and it supports a position that Bitcoin would have been a wiser investment strategy than Steem given the current position of the coin in regards to external support. That said, if we can lobby to increase visibility, then the benefits follow. But the best thing that the Steem community can do is to create content that is high quality and not available elsewhere (ie. no more cross posting D-Tube videos to YouTube), and that Steemit posts are of a quality of journalism rather than a picture of the food you are about to eat. Twitter would never have gotten as popular and the defacto place for short statements on the Internet if it remained as it was in 2009. Its evolution represents the fact it is now an important place on the Internet. We have to do the same here.
Glad you uploaded the video Ken, good stuff! Yes, I also like to do the 50/50 payout because I like to have that sbd for doing what I want with, whether it be steemmonsters, smartsteem, or other use. Hope things are going better!
💁💕 I always choose 50/50 Payout , and really enjoyed your post and video as always @kenmelendez ! You are still on my auto voter at @momskitchen Sorry ive been so busy lately moving, but I still find time to play Steem Monsters and finally got up to winning 25 Booster packs with my son also playing when im too busy ,hahaha! He now has an account and I gifted him a bunch of cards for the fire team ! See you on the battle field Ken! Upped and resteemed!
Thank you for sharing your opinion my brother @kenmelendez I will follow your way
I checked the payout from @steemit and the Steem and SBD's are not paid evenly.
It looks like the amount of SBD's we receive is based on how much Steem Power we would otherwise receive if we chose to Power Up 100% @kenmelendez.
I personally think it is better to Power Up 100% to avoid having to file it as a tax event @kenmelendez. I think we'd still have to report it as income but we wouldn't need to calculate each individual trade.
TAG: @beunconstrained @k0d3g3ar
Here is an example (screenshot).
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