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RE: The first phase of the Steem FAQ and Wikee: Consolidation of Knowledge
While i´m powering down, what happens in between these 2 years.
First Question: Do i get all the Steem Power at once or on a weekly base?
My Second Question is related to the first:
If its payed out at once, do i still can use the Steem Power to vote, while im powering down?
There is no interest on SP. It is a common misconception. But your SP does "increase". This might be a good question to ask...
I've been googling the semantics over the word "interest" and it is more commonly associated with lending and borrowing (or deposits). Thing is, there is a "growth" but I don't know any other word that closely approximates this concept other than interest. It is definitely not ROI since dilution is running faster... I don't know what else to call it.
I think the correct term is 'dividend'. Stocks and bonds both have these, after prescribed periods periods or they can be announced out of the blue, when a company is doing well and wants to encourage buying pressure on their stocks. So, these additions to your SP should be called 'dividends'. But by the same token, interest payments work the same way. In margin lending facilities at exchanges, you get regular payments on every loan as it matures from the funds you place on deposit. So it's similar to that as well, basically like a term deposit.
It's best to explain the mechanism behind Steem Power. It's really unclear if you don't know how it exactly works.
SP is actually VESTS. A vest is like a share of a pool of money. When you power up, you buy those shares. You don't get any interest in a sense that you'll get more vests.
Instead the value of those vests will go up because the pool of money will grow bigger over time.
total_vesting_fund_steemshows how much steem is on that pool of money.total_vesting_sharesshows how many shares exist.I think it might been a little mistake to talk about Steem Power as steems and not as vests. Of course it is easier for average user when they don't have to know about vests, but it makes the system harder to understand if somebody really wants to.
Another question.
A genuine one I can't answer.
If by powering down I am paid a weekly payment of 1/104th of my SP, could this payment increase each week as my SP is rising, or is this only based on how much SP I had at the time that I chose to 'Power Down'?
It is based on the amount of SP you chose to power down. Your SP holdings could keep increasing though despite the power down - although the 1/104th payment will be the same.
You can initiate a new power down at any time (at which point the 1/104th slice is recalculated based on the SP amount you hold at the time when you click the button). So in this way you can increase the SP amount withdrawn (if in the meantime your SP is growing faster than your withdrawal rate).
So, yes or no, 104 weeks after a full power down and earning no SP rewards, will my SP balance be 0?
Even if you get no rewards, the balance is still going upwards due to the programmed growth. So the answer is no.
If you have 1000SP to withdraw, and you get no curation or author rewards, you'll get the 1000 out in 104 parts, but when you have finally pulled out the 1000, there will be more in your account from the "interest" of the initial 1000.
While powering down the network has calculated your Vests, which are a stable measure of Steem supply. The network will transfer 1/104 of your Steem Power (Calculated as Vests) to Steem each week.
The action occurs on a weekly basis.
One can continue to curate and earn curation rewards while powering down.