Smartsteem.com offers multiple services. One of those is our bid-bot:
@smartsteem - the currently 2nd biggest bid-bot with over 2 Million Steempower, where you are able to buy votes by bidding for a share of a 100% vote. The votes are then cast every 245 minutes.
Over the last few weeks, we've analyzed the landscape of similar services and realized that there is big potential for improvement.
That's why we've made some changes to improve our service for our vote-bidders, delegators and for us, as well.
If you have used a bid-bot before, the chance is high that you were over-bidden at least once.
Which means: multiple users bid and paid more SBD & STEEM than what the vote was actually worth and the result is: loss of investment.
Paying 20 SBD for a 30$ vote (11.25 SBD + SP after Curation) is not fun and for many smaller users, a drastic loss.
There are different reasons for overbidding and we believe that we've eliminated nearly all of them.
Revenue Loss Limit
Our first measure against overbidding and pro-profitable & -neutral bids is through our Revenue Loss Limit.
We believe that a bought vote should be used for promotion and not in the first place for profit-reasons, however - as we've written above - losing a huge sum of money is not ok.
That's why we decided to put our Revenue Loss Limit at -10%.
This will protect you from losing your invested SBD & STEEM through overbidding - by putting your potential loss at a bare minimum of 10%.
25% Curation as Default
Another reason for overbidding is that some people calculate their revenue without curation and create their post very shortly before the end of a bid-round and bid on it.
While this is lucrative for the individual as they don't have to give away 25% of their vote-revenue to @smartsteem (due to the young post-age) - it however totally destroys everyone's profitability who bid on an older post or earlier in the bid-round.
That's why we've implemented the change that posts will be upvoted as soon as they are 30 minutes old (=25% curation).
Example: If a user submits a post which is 10 minutes old, when the bid-round starts, then we will wait 20 minutes until the post is 30 minutes old and then vote.
This gives everyone the same profit-calculation and the same risk of overbidding (but max. -10%) - which will prevent egoistic voting.
More balanced payouts
We believe that the changes above will result in more balanced payouts and most importantly: less frustrating bidding.
Additionally, the guaranteed curation revenue for smartsteem will help us to keep the payout-percentage as high as possible (95% is a very solid number) while still having enough revenue to keep developing and enhancing smartsteem.com.
Last but not least ...
We want to thank every single one of our delegators for supporting and delegating to @smartsteem!
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Disclaimer: This post has been up-voted via @smartsteem and all delegators have been credited accordingly.