Estimated Value in your Steemit Wallet is just an ESTIMATE

in #steemit-help • 8 years ago (edited)

Just a quick note, as I recently had an interaction with someone on Bitcointalk about this.

The Estimated value in your Steemit wallet is an ESTIMATE. The estimated value of your STEEM Power is based on an average price of STEEM over 7 days. Therefore the estimate may not tally with the current market price of STEEM.

The actual value of your STEEM Power will be determined by the price of STEEM whenever you choose to power down/ sell it.

If you power down, you do not receive all your STEEM at once. You receive it in weekly installments over two years.

  • So for example if you had 104 STEEM Power in your wallet and powered down, you'll receive 1 STEEM per week for the next two years. The price you can sell that 1 STEEM at will depend on the price of STEEM at the time you sell it. So this can fluctuate.

(Remember also that powering down your STEEM Power reduces your vote weighing and influence on the site, so be sure it's something you wish to do)

I appreciate that many of you know this. However there are a lot new people attracted to Steemit in the last week (welcome all!) and next week's Estimated value may get confusing given the recent sudden spike in the price of STEEM.

NB - if you have any questions just post it or ask on the slack channel: https://steem.slack.com. There are a lot of people around ready to help.

Happy Steeming!

8 years ago in #steemit-help by
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     7 years ago 

    This is a great answer. Thank you.

    I tried joining the Slack channel but I need permission and there is no link for that.

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     7 years ago 

    You're welcome, try steemit.chat - that is the slack equivalent for steemit.

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     7 years ago 

    Thanks 🙏 😎

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       7 years ago 

      I am new in steemit and I've been looking for an answer about estimated value. Thanks to you this post has clear all the cloud inside my head about this issue.
      thank you

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       8 years ago 

      Great post! I'm not a newbie but I really liked the way you described it, It was easy to understand.

      [-]
       8 years ago 

      thanks this is really helpful

      [-]
       8 years ago 

      Hey Do you know what the interest rate you get for steam power?

      [-]
       8 years ago 

      I didn't know that was how it worked. I really appreciate posts like this explaining all the exact details of how everything works. Thanks man!

      [-]
       8 years ago (edited)

      So for example if you had 104 STEEM Power in your wallet and powered down, you'll receive 1 STEEM per week for the next two years. The price you can sell that 1 STEEM at will depend on the price of STEEM at the time you sell it. So this can fluctuate.

      This seems completely false. From whitepaper:

      Because Steem wants to encourage long-term growth, it is hardwired to allocate 9 STEEM to Steem Power (SP) stakeholders for every 1 STEEM it creates to fund growth through contribution incentives. Over time this drives the ratio of the total STEEM value of Steem Power balances to the total of STEEM balances toward 9:1 . (It seems likely that the ratio will be somewhat greater than 9:1 due to continued net Powering Up of the newly printed STEEM.) It also means that long-term holders are almost completely protected from the dilution used to fund growth.

      SP can only be converted back to STEEM over 2 years via 104 equal weekly payments. ‘1 SP’ can be viewed as a share in a pool of STEEM. The network automatically adds STEEM to the pool every block. At any time users can convert their STEEM into SP at the same ratio as STEEM in the vesting pool to total SP. Converting STEEM to SP does not dilute existing holders of SP. Likewise, every time SP is converted back to STEEM it is done at the current ratio. Individuals are guaranteed to have more STEEM in the future than they have when they first convert from STEEM to SP.

      So minimum ratio is 1:1 as you say, but can arrive up to 9:1 over time, even if I'm not sure according to what timing.

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       8 years ago 

      Yes they will in reality have more STEEM as they would have earned interest. I was keeping my example simple, which is what most newbie sorely need at present.

      [-]
       8 years ago 

      So should I even check? I have no interest in powering down so....

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