Introducing Open Cost Ledger - Optimization of Vote Purchases

in steem •  2 months ago

Since the inception of Smartsteem, our main focus has been to offer the best promotion tool available for the Steem ecosystem. It's with this in mind, that we are constantly revising and refining our tools and services through careful development.

A few months ago, we were alerted of a small occurrence, where some vote buyers through @smartmarket would get more votes than they actually paid for. This particular issue came about simply due to the very nature of voting power percentages.

The intention of this point is to explain the issue and to clarify the steps we are taking to correct the unbalanced calculations.

Detailed Explanation & Example

The following breakdown is intended as the simplest explanation possible. The specific values of upvotes can of course vary, as the valuation of STEEM fluctuates constantly.

Assumptions


Let’s assume we have a vote selling account that holds 1 million STEEM Power. Let’s refer to this account from now on as @vote-seller. Let’s also assume a VP that does not deplete, simply for the sake of simplification.

Also for our example, the only account available to vote at the moment of the transaction is @vote-seller. In other words, his vote would not be added to a trail or compounded with any other voting account.

ROI: 1 SBD vote purchase => $1.5 STU Result

The Roundup problem

  • Votes at 1% with today’s valuation would be exactly: $0.84 STU
  • Votes at 2% with today’s valuation would be exactly: $1.68 STU
  • Votes at 1.3% with today’s valuation would be exactly: $0.84 STU

As you can clearly see, the blockchain rounds the 1.3% and makes the voting result exactly the same as a vote that has 1% of weight behind it.

Vote Purchase

Now imagine an account that sends to @smartmarket 1 SBD to purchase votes. As we discussed before, at the moment of this transaction, the only seller available is @vote-seller. Since, the roundups cause a problem a refund is calculated and sent back.

The process would work like this:

  • Voting at 1% = $0.86
  • Target of $1.5 not hit
  • The difference is calculated
  • 0.42 SBD is sent back to buyer

As you can see, this does not seem like an optimal way to operate. In other words, the buyer is unable to access the potential vote he/she wants due to the roundup issue.

We believe we can find a better way that can work for everyone.

Our solution

In simple terms: Let’s round the numbers up.

So when a vote buyer purchases his vote from @vote-seller he would get the next exact percentage up, instead of down. For our specific example it would work like this.

What about the difference?

Of course this operation has to be a win for absolutely everyone involved. We could not simply expect the vote seller to give away a part of his vote, represented in our example by the $0.18 cent difference. In truth, up until now we have been covering that difference at our expense, but we know this is not a sustainable way of operating. Simply said, the costs pile up.

Our solution to this second problem…

Open Cost Ledger


As seen on smartsteem.com/balance

The simplest way you can think of this ledger is as a promotion fund. Every time you send transfers to it, it would operate in your best interest. Meaning, that it would add the cost of your promotion to your particular ledger, while at the same time allowing you to purchase the bigger vote.

The ledger will self-balance in the next transactions, whenever we would partially-refund transfers due to not enough available voters. Thus keeping your account up to date and giving priority to your promotion requests before re-balancing the Open Cost Ledger.

Now, it’s important to mention that the main goal of this change is designed to optimize vote availability. The balancing of the Open Cost Ledger only happens when it becomes viable, when the transactions allows it. The balancing of the ledger is automated.

In Conclusion

We trust that this changes will allow our customers to take better advantage of our service. Allowing more optimal windows for purchasing without relying on optimal vote availability, which should allow a more fluent system at any time of the day.

Team Smartsteem


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Am I reading this right... you are back charging for votes you say were fractionally over voted? Not just a new thing you are doing, but back charging for votes already done, gone and buried that you say were under paid for?

Been with Smartsteem since march and there was never a problem (that was'nt solved in no time!).
Best thing for me that with @therealwolf i can ask questions in german what helpt a lot since my technical english is horrible^^

Good to see you're improving your system!
I may have to try this one day.

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You may have to do that some time ;)

Smartsupport

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Interesting, and slightly worrying discovery for those who use % to decimal places.

However, have you checked whether the issue resolves itself upon payout?

I mean, as in your examples, a 1% and 1.3% upvote would generate different rshares that on payout are converted to SP, STEEM and SBD. Are those payouts different, even if the US$ pending rewards figure is wrong?

Thanks.

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Hey @accelerator,

we tested the theory out in practice and while we didn't check the payout, the rewards where the same regardless of 1% or 1.3%

Smartsupport

Stop the vote selling/buying!

Could you explain how 0.005 became 3.816 ????

Added Open Costs: 0.002 +0.001+0.001=0.004
Cleared Open Costs: 0.551 + 3.265 = 3.816

Could you explain where the funds go from each transaction ?

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Hey @barbadosso,

the 3.816 SBD Open Costs that got cleared, as seen in your screenshot, were accumulated over the last months.

We just recently added transactions-entries, which you're now seeing for 0.002 +0.001+0.001.

Also, please keep in mind that you profited from more votes than you paid for (as the rest cost were paid by us) for months, as we weren't aware of the occurrences at that time.

We are doing our best to offer you a transparent & effective service and are always looking to improve (i.e. the open-cost entries in your history).

All the best,
Smartsupport

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The law does not have retroactive effect, doesn't it? Why customers must pay for your mistakes? From where I know that what exactly is this amount, maybe the amount was not 3.816 SBD but 0.005 or -53.008???? And did you return all Cleared Costs to vote-sellers?

And you did not answer for second question. So i am waiting for that

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Hey @barbadosso,

we can understand that this post might be a bit overwhelming. And we also see the point you're making about the retroactive effect.

However, we didn't make any mistake per-se. For months, you and other vote-buyers have been receiving part of your votes for free. The open costs have been paid by us - as votesellers of course were credited for the whole voted amount. (as explained in the post above)

And few months ago, after we realised about the occurrences, they were added after every vote-purchase to your open costs ledger.

We do understand that missing histories is a reason for scepticism, but please be reminded that we guaranteed, in your case, over 380 unique vote-purchases with our positive ROI (at the time of purchase).

Regarding your second question: the funds are always added to the votesellers balance on Smartsteem.com

Last but not least, we've worked hard on creating a post which should answer all questions. If there are still questions open from your side, then please read the post again.

All the best,
Smartsupport

I think it makes sense and if it is for the sustainability of the service, I will fully support it. Thanks!

Posted using Partiko Android

smart steemit become more smarter with such pretty tools ! keep doing the same

I have used the tool and it is pretty good

I love smartsteem they always make sure they deliver good service in their market strategy.


Congrats, you made the #steemitminute for today!
Click the Image Below to see the Video!

yes The process would work like this:

Voting at 1% = $0.86
Target of $1.5 not hit
The difference is calculated
0.42 SBD is sent back to buyer

My favorite voting power bot @smartsteem

so who makes more money out of this ?

Do not have any free promotion way for the new steemit user?@smartsteem

love smartsteem they always make sure they deliver excellent service in their market strategy.

Iam regularly using #smartmarket for upvote..
Thanks @smartsteem for this awesome service.. 👍😊

Nice one.
Pls fellow traders, trade carefully. read about coinsmarkets exit scam. We have started analyzing cryptocurrency exchanges that may exit in future. keeping you alert. read here, upvote and follow us for more updates.
https://steemit.com/cryptocurrency/@coinratecap/coinsmarkets-scam-why-is-nobody-talking-about-it

Very interesting idea!

Steemit is very best work on every country I like Steemit community but I am new user please help me my reputation is very low. Am best apvoter

Posted using Partiko Android

this is great option for buyers who are looking for option to buys votes and increase their earnings, amazing oppurtunity and calculation is also easy to understand.Thank you bro

nice illustration of the topic keep it up and thanks for this info and bringing it up in our support so that all of us can take benefit out of it

Very cool! So it's like our own little bank. Similar to the way tipu and dustsweeper pull money from our own banks to fulfill the services we request? I like it! Great solution to the problem @smartsteem and @therealwolf!! 😊

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Hey @dreemsteem,

the Open Cost Ledger is not exactly a bank, but a tool to enhance the simplicity of using Smartsteem.

Smartsupport

Hi @smartsteem, I'm @checky ! While checking the mentions made in this post I noticed that @vote-seller doesn't exist on Steem. Maybe you made a typo ?

If you found this comment useful, consider upvoting it to help keep this bot running. You can see a list of all available commands by replying with !help.

Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble

Yeahh steemit is a great platform smart tools... I will fully support it...

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvoting this reply.

If I'm sending u 1 sbd what's my profit?

Posted using Partiko Android

I use @smartmarket to promote my post.

Posted using Partiko Android

Nice information, upvoted>>>

U are this position because your hard work,👌👌👌,some useful tips for me ?

Very interesting

Posted using Partiko Android

Nice, more grease to your elbow.

Smartsteem become more better!! Is a good news, well done!

All improvement that will benefit both the content creators and investors in the most fair manner are really welcome.
I use smartsteem.

It only upvotes but the follower not increased.

Nice.. Lets try it later. Thanks @smartsteem

Posted using Partiko Android

Hello. Yesterday I threw you on the provision of my post 32 sbd but did not get a vote. Can I return money or get a vote?
This post.
https://steemit.com/crypto/@jupiterpipit/prospects-of-altcoin-number-one-ethereum

P.S -I apologize if I write not the right place to go for help.

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Hey @jupiterpipit,

something went wrong when you created your post, which made it unable for anyone to upvote it.

Please re-create it and we'll send a promotion your way

Smartsupport

I'm going to look into this, been thinking about delegating my steempower somewhere, I'm just weighing out the options.

Congratulations @smartsteem!
Your post was mentioned in the Steemit Hit Parade in the following category:

  • Pending payout - Ranked 5 with $ 456,66

How it work frnd pls tell

support is Good

feel free to promote my shit. LOL.

Good stuff I really like you alls service!

useful information for mutual progress.
I like the simple terms:

Let around the numbers.

I don't know how you do all this and your algorithms because I didn't researched much about steem, but I am enjoying your service so far.

Thank you @therealwolf and to your team for a great promotion! Thank you @smartsteem!

VERY GOOD EVERYTHING BIG I CONGRATULATE YOU!!!!!!!

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Nice post! I really like it if you follow me!

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Maybe give them a reason.

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