# Why you receive Steem and how to Power Up with Steem ? – A visual step by step guide 🐳

### Authors receive part of their payouts now in Steem besides Steem Dollars and Steem Power.

This is due to a rule based on the market capitalization (market cap) of Steemit and the total amount of steem dollars. See coinmarketcap.com and on steemd.com you find the total Steem Dollars supply.

Steemit calculates each week the percentage of the steem dollar supply in relation to the market capitalization.

**Percentage % = steem dollar supply / steem market capitalization**

Today the result is 3.1 % = (2,268,814.329 SBD / 72,844,041 $) * 100

If the result is below 2% you get paid half of your author rewards in Steem Power and the other half in Steem Dollars.

Above 2% this will change. Instead of receiving half of your author reward all in Steem Dollar you get some of it now in Steem and the rest in Steem Dollars.

**Between 2-5% there is a linear relation of what is paid in Steem Dollar and what is paid in Steem. The calculation is based on Percentage % minus 2 and then divided by 3. ( % - 2)/3.**

Example: (3.5% - 2) = 1.5 and then 1.5/3 = 0.5 => result: half is paid in Steem Dollar and the other half is paid in Steem.

Therefore, in your wallet you will now see as well some Steem showing up.

**If you leave the steem and you do not convert those into Steem Power you will lose the value of the steem over time.** The amount of steem is constantly increasing and therefore has a very high inflation rate.

### How to Power Up with Steem ?

Follow the below steps

In your wallet click on the arrow next to your steem amount and then select Power Up.

Enter the amount of steem to use for the Power Up.

You need to authenticate this transaction.

The transaction will be displayed in your history.

I am on steemit because I have a mission

@steempowerwhale 🐳

🌞 upvoting your lifetime dreams!

hoggorm (38)3 years agoThanks for useful information!! 👍👍

portsidemkt (29)4 years agoThanks, you are good at explaining the concept. I am new, what is the purpose of converting and when is it best to do so?

steempowerwhale (59)4 years agoAs soon as possible or as the white paper says in less than 7 days.

portsidemkt (29)4 years agoOK cool - thanks

borishaifa (62)4 years agoVery good guide!Thank you!

dcat (38)4 years agoThanks! Every bit of info is helpful. I still don't understand how it all works!

steempowerwhale (59)4 years agoThank you for your comment. what part is missing so that you can understand, or what part of it do you not understand? Always good to start from that angle.

dcat (38)4 years agoIs it also possible to earn steem with curation?

steempowerwhale (59)4 years agoNo only steem power.

dcat (38)4 years agoThanks!

bola (67)4 years ago (edited)Nice... I like the percentage grid, now I know what to kinda expect.

insteadofmoney (47)4 years agoThanks for you work !

Very helpfull !

Good luck )))

shadowspub (70)4 years agocan you only use Steem to power up? Or can it be converted to fiat?

bullionstackers (71)4 years agoNice Tutorial

shadowspub (70)4 years agoHi @steempowerwhale, stopping back to let you know that this post was one of my favourite posts yesterday. You can read my comments about the post here.

sornprar (7)4 years ago (edited)Thank You for such an informative article.

I am far from some mathematical genius or anything, so it gets a little frustrating trying to figure out all these new and technical details (of a very unique website).

One thing I am hoping you would be willing to help us figure out is the conversion system (Convert SDB to STEEM and then STEEM to Steem Power).

It appears one must "burn money [Steem]" to convert SDB to STEEM (latest = Fill convert request: 2.281 SBD for 1.769 STEEM), yet in the example there is a negative difference of 0.512 between the SDB used and the STEEM received. Then it appears to "burn money [Steem]" to Power Up (latest = Transfer 1.769 STEEM POWER to sornprar), and yet in the example there is a negative difference of 0.184 between the STEEM used and the Steem Power received.

I am having a difficult time understanding the value differences between SDB, STEEM, and Steem Power (if any difference in value at all), and as well have never 'Power Down' to experience if the decreased number values of 'Power Up' actually increase if one is to 'Power Down'.

Do you have any simple advice to help understand not only what happens to these decreased values when one converts and 'Power Up' (goes to witnesses, it "burned", goes into the rewards pool, or used by Unicorns to pay horn shiners at the Unicorn Mall), and also if the same results occur when one uses 'Power Down' (whether an increase in conversions, a stabilized conversion, or another decrease in the conversion)?

I can understand that fluctuations in market value could have some affect on the value of what one is holding, yet not on the amount (which is what seems to be lost in the conversions).

Thank You in advance.