Retroactive SPS Proposal - Steem Power APR Revealed!

in #steem11 months ago (edited)




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Some of you may or may not know that by holding Steem Power you earn passive stakeholders' interest. I have known this but didn't know exactly how much, from old literature I guessed it to be around 1.8% per annum but, never was sure.

Even the media has no clue and as such, the native Steem Power interest rate was misrepresented as low as 1 % in a news article when compared with Tezos.

WAVES had the second-largest return, with a 4.8% annual yield for staking the token. The decentralized social media platform, Steem (STEEM), offered the lowest income returns, at 1%.

There was literally no easy way to check this, not even on existing block explorers, which was a particular bugbear of mine.

So I decided to do something about it, I consulted with Justin, the Head of Development at Steemit Inc, who indicated this would be a welcome feature but their team are already working hard on this hard fork and the upcoming SMT's and agreed they would seriously consider merging a suitable community Github pull request.

Knowing that such a feature would have a good chance of being merged, I created a Github issue and since I have been very impressed with developer @quochuy and his contributions to Condenser in the past and his involvment within BuildTeam, I asked if he wouldn't mind coding it up.

@quochuy being the awesome guy he is, did so and engaged with Justin for extra parameters, the whole process was fairly painless and @quochuy issued a pull request for the change, which to my delight was merged today by Steemit Inc,.

This is the result on the https://steemitwallet.com balances page:



We now know that the staking APR is 2.25%, I had no idea it was that much. This means the media can get our staking figures right and perhaps in a world of negative interest rates, powering up STEEM may be a cool option, when added to Steem Power leasing rates as high as 26.5% as is currently on order on the dlease.io platform, signifies a 28.75% APR return possible on Steem today!

The Proposal

There was no talk of money for this proposal, @quochuy was so nice that he did this at no charge and it isn't just a simple text addition, it is, and I quote:

Computed based on dynamic global properties from the blockchain.

I thought this would be a great way to test the new Steem Proposals System and reward a developer who has already done something at the time of the SPS to encourage him to do more for the community in future.

While there is no central body keeping track of whether the proposal promises are being followed through, retroactive proposals like this one are totally risk-free for the community as the value has already been provided.

I asked @quochuy if he would be happy for me to submit a proposal with him as the recipient for $200 and he was grateful and even humbly said I should reduce it to $150.

I am really proud of the honour and belief in Steem that @quochuy has shown and am pleased that he is working with us at BuildTeam on the @ginabot project to bring you a brand new interface and features.

So Tl:Dr, the proposal is being created very simply on https://steempeak.com/me/proposals



PROTIP: You have to create your campaign post first and use its permalink to create the proposal, the permlink is the last part of the url after the author name, also known as a slug, in this case it was 'retroactive-sps-proposal-steem-power-apr-revealed'.

This is my first test so I did it at 70 SBD per day over three days because SBD is currently trading at 0.82 USD to make sure it is enough.

EDIT: Due to some ambiguity on the Steempeak proposals creation page, I selected 4 days in error because it seemed like the last day would not be included, hence the proposal will be for 4 days @ 70 SBD per day, but @quochuy deserves it, he has done many free community PR's in the past.

The Impact

Sometimes the little things can make the biggest impact, the weapon that fell Goliath was merely a stone; what if the catalyst to bullish STEEM price is something as simple as showing the world what our stakeholding interest rate is?

Conclusion

The value of the proposal isn't really isn't much and isn't about the money for us, it is more to prove a concept, that influencers and change-makers, who are not inherently developers, can still get their ideas realised by playing to their strengths and issue proposals on behalf of great developers and help get them approved to make Steem great together!

It also shows that in #newsteem, Steemit Inc, is a collaborative entity that wants to engage with community developers and merge reasonable pull requests.

#newsteem is a breath of fresh air, and is not at all like the old Steem.

Please go ahead and vote for this proposal via the following link:

https://steempeak.com/me/proposals or on https://steemproposals.com/proposals (on this one set more than 10 posts per page to see it.)

PROTIP: Ensure you enter your title and info correctly, once submitted can't be changed, only deleted and resubmitted, the original 10 SBD submission cost will be lost.

Also check out https://joticajulian.github.io/steemexplorer/#/proposals which updatess the vote value more regularly.

Ricardo Ferreira
@thecryprodrive
BuildTeam CEO
Steem Consensus Witness


If you like what I do, vote for @thecryptodrive witness with this vote link: https://steemit.com/~witnesses

Or use the quick SteemConnect link: https://app.steemconnect.com/sign/account-witness-vote?witness=thecryptodrive&approve=1



~

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Thanks for taking time to post this proposal. I hope we will get more simple ideas like this that can help attract more attention to Steem, quick wins.

Thanks for your work, will vote the proposal. Much better than all the lawsuit nonsens we now see in the SPS.

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Pleasure working with you, we made a great team. I have some more ideas coming up, just need some time to formulate them.

We now know that the staking APR is 2.25%, I had no idea it was that much. This means the media can get our staking figures right and perhaps in a world of negative interest rates, powering up STEEM may be a cool option, when added to Steem Power leasing rates as high as 26.5% as is currently on order on the dlease.io platform, signifies a 28.25% APR return possible on Steem today!

Just go with the average, it's healthier for Steem and everyone involved to be realistic about the APR than throw out some crazy numbers like we have done in the past (with payouts) and only damaged ourselves more.

Also the math there isn't right.

But yes, delegating Steem to successful projects should net in some really decent returns now especially with the increase in CR, it's time we market that to the world and when they realize that the price can't possibly drop much lower than what it is now they will notice how good of an opportunity it would be to invest in SP right now and hodl for a couple years. I know we cryptoheads are into the 20-50% pumps daily, etc, but regular people will be okay with 20% APR even if price is 15% lower in a few years.

Thanks for noticing the maths error, fixed to 28.75%. The 26.5% is more than average for the market today as that lease is for 300K SP, so was accurate to say that. My personal average is 20% and has been that way for a few months, I expect it will start creeping up now.

I agree investing and hodling SP is the way to go, I don't know of any other investment that can give 20% APR while still having upside exposure, sure the downside risk will be there as with anything.

Yeah it's annoying how Steem never gets the exposure it deservers, hopefully with the SPS we can start funding some real marketing until Steemit is doing better. Best part is that funding the marketing should make Steemit do better due to adrevenue, etc.

I think @ocdb was at around 17% APR pre-hf21, while giving 10% ROI to buyers, will be interesting to see what the numbers are now after and once downvotes are used more and quality at the same time increases of the bidders as they don't want to receive downvotes. Also curious how bid bots will be doing, I haven't heard much from most of them as to their changes so I'm guessing they just keeping things as is and taking as much rewards for themselves as they can while inactive delegators are inactive.

Going to be interesting times for sure, Steem will get there. It is only a matter of time, our repo is the 5th most active in the crypto space I believe.

mmm... I've been paying out about 20% APR equivalent for months now. Gross earnings will obviously be a bit higher. Now with tokens there is not even any need to hold SP and delegate - just buy the tokens.

That in itself, avoiding 14 weeks to undelegate and power-down should attract investors. I dunno, have heard many think it's still "too high" which is bizarre given the expectations of crypto prices.

I have also created some stable-tokens - more by accident than design but anything that is truly asset-based will be more stable, at least with respect to that underlying asset. Hence they are STEEM-stable but obviously not Dollar-stable.

I have also seen research papers on PoS returns and STEEM not even mentioned!

What makes you think it can't possible drop lower in price? Very strange reasoning? This is crypto. All cryptos are high risk. They can drop to zero.

Thank you for doing this and reporting to us! I had known about the interest, too, but had no clue how much it was, but it was awesome that you got an answer! Many thanks to @shadowspub for letting us know about this post in PYPT in her "TheRamble" discord server! 🙌

cool, like your lego :)

Yeah man, you inspired me!

come to newsteem and lets build some cool stuff together

I'd like to use the logo on your profile picture if you allow me.

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Not sure if mine to offer as it is a piece of lego but ok

I like this doll so I want to use it as a logo.

I can't find this picture anywhere. Will you give me this picture?

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I'd like to use your picture as a logo.

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id prefer that you didn't, take it if you must. i like some of your pics also. thanks

Perhaps someone can give us an easy way to track these returns, where would they show up in our wallet???

They just increase your SP over time, it's continuously being added, best way is take note of what your SP is today and check what it is tomorrow, small accounts may not even see a difference but if you look at vests on steemd.com you should see them increase. Remember to exclude the curation from the calculation.

At least now we have the APR, before we had absolutely nothing.

Thanks for the information, stats like this will help when investors look into Steem!👍

Posted using Partiko iOS

That's the idea! :)

Always wanted to say this...

Approved!

Now everyone is a manager on STEEM =)

Nice, I love it :) bring out the rubber stamps.

I will support the proposal!

Awesome thanks my man!

곰돌이가 @jaydih님의 소중한 댓글에 시세변동을 감안하여 $0.014을 보팅해서 $0.026을 지켜드리고 가요. 곰돌이가 지금까지 총 6339번 $70.227을 보팅해서 $81.502을 구했습니다. @gomdory 곰도뤼~

Quality stuff.

!dramatoken

Thank you for this post, I never new we earn 2.25% interest by staking Steem!!
Nice info and proposal.

I didn’t know exactly how much either, so is very cool to see. Thanks for your support.

This sounds like a good addition to Steem and Steemit.

Oh how I just still love Lego...

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@thecryptodrive, In my opinion this aspect is known by all but at the same time no one had clarity. Good to see that you've took it seriously and now we know what is the actual APR Percentage. And for sure @quochuy's work is really appreciable.

Keep up the good work and stay blessed.

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You have DRAMA!

To view or trade DRAMA go to steem-engine.com.

Well it doesn't look like the proposal will be accepted realistically (SPS is still ramping up and very little will get funded for the next month or two), but you can always give @quochuy the rewards from this post.

Good post

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