You seem to know what you are talking about so I would like to ask you a question if I may.
500sp was a 5 cent vote, now 1000sp is a 4 cent vote, if this is based on the external price today of 62 cents for steem, I used world coin index for that just. Then if it keeps falling will my 900 sp actually be in minus territory should we hit 0.7 cents like some years before?
lol, I don't think it can go into minus. What people have to remember is that what is actually voting is vests, not price.
imagine voting power is 100%
500 SP = ~1000 Vests
a 100% vote has 1000 vest pull on the pool regardless of price. What this means is that all things remaining equal, whether Steem is $10 or 10c, the draw on the pool is the same which means it will reward the same amount of Steem from the pool. Price doesn't matter so much until selling although SBD printed will be lower at lower prices.
What decent posters will find is that as price decreases, supporters might increase their voting percentage. What this means is that they are actually using more vests to draw from the pool which increases steem reward. For example, I will go from 3% comment votes to 4 or 5% depending on price. What this means is that essentially in Steem, people will earn up to 66% more steem from a comment even though the payout value is lower.
Okay I sort of get that, though why is the vote value going down so much? What is the factor devaluing sp so that 500sp was a 5 cent vote and now a 2.5 cent vote. It all seems to tie in with outside prices, as steem price sinks, vote value sinks, and post rewards deflate.
I am watching post rewards go down by the minute, not hour.
Yes. The values shown are tied to the price of steem externally so will be affected on a 3.5 day moving average.
The current feed price is 73c but the external price is 62c i think so over the next days it will drop lower.
Superb thanks, I thought that was the case regards rewards.
I am though still no closer to solving why vote weight values are deflating also on a massive scale. All in the code I guess.
Vote value is tied to price too so if Steem was 1 dollar and the vote is worth 2 dollars, when steem is 10 the vote is 20. All things equal.
Let's say you go 50/50 reward. Sbd is always calculated at 1 remember.
Example without factoring curation and only one voter.
@ 1 dollar steem
A 2 dollar payout is 1 sbd and 1 steem
1 sbd can buy 1 more steem so the payout is worth 2 steem.
@ 10 dollar steem
A now 20 dollar payout is 10 sbd and 1 steem.
10 sbd can buy 1 steem so the payout is still worth 2 steem total.
However, obviously with the second example the sbd can be sold externally for 10x the value of the first.
Make sense?
I am trying to get there honest lol, I get lost at the point where I think steem was worth 0.7 cents, yet way back when, people were getting $1500 posts, without bidbots.
Now there is more steem on here, more people with over 500sp, yet the vote value is not enough to see those massive post returns.
Maybe the bots killed it, I do not know, though if steem was worth only 0.7cents which it was, and votes were worth a lot more, that is where it all gets lost on me.
If we reach 0.7 cents for steem and 0.10 for sbd, then will we have a broken system, or one that functions still, as when it was last at said point?
Sorry for so many questions, just trying to understand it all, thanks for being patient with me.
When Steem was 7 cents huge posts were around the 50 dollar mark. one of my few times in Trending was a 25 dollar post. If I remember it took a whale or two and curie to get me there. The massive posts at the start was because there were few users but they were distributing the whole pool. As more users come on with stake, there is less high reward. currently the bidbots are the only ones who can get posts to 1500 and that is stacked with multiple bots, never organic.
THe system is designed for essentially whatever price. if you remember not too far back SBD stopped printing. That was because of a debt system that ensures SBD won't get over produced as it is backed by Steem.
Essentially though from my perspective is, unless selling, don't worry too much about price (or payout values) and play your game well.
See, reading some Steem related material can help from time to time ;P
And oh did I feel that slap around the head all the way to Poland. :p
Thanks bro, your the man for stats. :-)