Common SteemIt mistakes and misconceptions

in steemit •  last year

SteemIt is extremely complicated, even for more experienced users. I've seen a lot of users making mistakes and/or spread incorrect information. To help everyone better understand the platform, i made a list of some of the most common mistakes and misconceptions I've noticed:

Steemit.com

While it is true that steemit.com is a website, it doesn't mean that SteemIt is a website! I know it's confusing, but i'll explain. SteemIt is running on revolutionary new blockchain technology. Steemit.com is what they call a front-end, GUI or client. It's merely communicating with the actual authoritative application, which is the server (in this case the STEEM blockchain). "SteemIt" is the name of the social media platform running on the STEEM blockchain.

Unvoting

I see a lot of people trying to undo their votes. In the current implementation of SteemIt you can never get your voting power back. Once you voted, that voting power is gone. So be sure to think about your votes very carefully!

Upvote rewards

A common mistake i see people make is assuming their vote is solely responsible for the change in rewards. It important to realize that on steemit.com the rewards don't update in real-time. So if you either vote or refresh the page these factors can influence the rewards:

  1. All incoming votes/flags that happened between the time you first loaded the page and the time that you voted/flagged or refreshed the page.
  2. The STEEM price (on the internal market). Unfortunately i don't have the exact details of this process, but it's very apparent that the rewards change, even without any votes/flags influencing it.
  3. Votes and flags on all other content (the details will be explained below in the reward pool section).

Reward amounts

The price in Dollars that is visible on content isn't the price the author will receive. That amount is divided between the author and the curators. While it's theoretically possible that the author will get 100%, in reality authors receive approximately 81% of the visible amount on average (the more popular the author, the higher portion of the rewards usually goes to the author).

Rewards can be paid out either 50% in SBD (STEEM Backed Dollars) and 50% in STEEM POWER or 100% in STEEM POWER, dependent on the choice of the author. In certain cases you will get rewards in STEEM on top of SBD.

Editing your content

Since your data is saved on the blockchain, it's permanent. In fact, every single mutation is permanent. If you edit your content, all previous changes remain in the database forever. Once published, the information can never be removed. SteemIt is completely uncensored!

Voting on old content

In the current implementation of SteemIt, you cannot assign rewards to content older than 6 days and 12 hours. When you upvote content in the last 12 hours of the first 7 days, you will get an error that you can only flag that content. After 7 days you can upvote the content, but it will not cost voting power, nor does it assign rewards to the content, so it's basically identical to a Facebook like at that point.

Reputation

A lot of people think that this variable represents the user's content quality, integrity and popularity. This is not exactly true. Reputation exclusively represents how much rewards a certain user has received, whatever the reasons may have been. In fact, you can even increase your own rating by voting on your own content.

The reputation score is based off of a log10 system, which means that a score of 40 is about 10x better than a score of 30.

Upvoting popular content

A lot of people focus on trending content and upvote content that has already made 100's of Dollars. In reality you will earn smaller curation rewards by doing this! I highly recommend reading my article Curation rewards explained in great detail to completely understand why this is!

The reward pool

Starting with the network's 16th hard fork in December 2016, Steem began creating new tokens at a yearly inflation rate of 9.5%. The inflation rate decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this pace until the overall inflation rate reaches 0.95%. This will take about 20.5 years from the time hard fork 16 went into effect.

How are the new tokens distributed?
Out of the new tokens that are generated:
75% go to the reward pool, which is split between authors and curators.
15% of the new tokens are awarded to holders of STEEM Power.
The remaining 10% pays for the witnesses to power the blockchain.

After reading the explanation from the FAQ above , you could calculate the daily inflation at the moment. Let's assume the current inflation is approximately 9.3% per year. At the time of writing the current STEEM supply is 250,864,825.923. 9.3% of that is 23,330,428.725. Divided by 365 days that is 63,919. That means today there is approximately 47,940 STEEM in the reward pool (75% of 63,919). At the current STEEM price of approximately $1.75 that is approximately $83,895 per day available in the reward pool to spread around among authors and curators.

Every user has the ability to assign their portion of that $83,895 to users, based on their STEEM POWER. Every user has the ability to distribute 20% of their total voting power on average each day. The way this process works is that the more users actively use their voting power, the smaller your portion of the reward pool is. It's theoretically possible to be the only curator that is curating that day, in that case you have full control over the whole $83,895!

STEEM Backed Dollars are worth $1.00 USD

This is absolutely not true. SBD is traded on the open markets. The current value of SBD is over $1.50!

It takes days to convert SBD or STEEM

This is actually only true when you use the internal conversion system. When you use that system it takes longer to make sure you get the average rate of that period. This is more useful for users that don't trade markets.

If you want to trade immediately, you can freely trade SBD and STEEM on the internal market or external exchanges like Poloniex and Bittrex!

STEEM POWER gives you 9.5% annual interest

This is actually not true. Putting your money in STEEM POWER makes you immune to just STEEM POWER Inflation. As mentioned above the STEEM inflation is currently around 9.3% per year. Only 15% of the created STEEM goes to STEEM POWER holders. So currently you only receive approximately 1.4% more STEEM POWER per year, not 9.3%.

Savings rewards you with interest

This is actually not true. Putting your money into savings is only to prevent potential hackers from withdrawing your funds immediately. That way you have 3 more days to realize you have been breached.

STEEM is a Ponzi-scheme

This is a common misconception. In reality the STEEM currency is a currency with a limited supply, similar to Bitcoin. In theory everyone in the world could use this currency as money and trade it for goods and services. It's irrelevant what the value of STEEM is in Dollars, Euro's, Yen or any other fiat currency.


Don't forget to follow, resteem and browse my channel for more information!

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Wow, had no idea about the unvoting and losing rewards, good to know! This was an extremely helpful post, thanks a ton.

Very informative and nicely written. Good content! Maybe you can writing something about upvoting your own comments, is this advised or not:) Also, I see my name on the top under vote, is that because I voted with the much voting power?

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Already did that 6 days ago: Self-voting needs to be addressed.

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Sweet:)

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Yes, it's ordered by STEEM POWER.

Some good info here

Excellent post. Contextualizing all of the misinformation is very helpful. Thank you.

So the reward pool is decreasing each day but why the reward is getting lower that has been assigned 4 days ago. Like $16 has been reduced to $12 and keep getting lower with every hour. Why is that?

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As the article explains, it's because the price of STEEM is dropping.

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Yes but it has not dropped more than 20% and now stable but it is still going down.

Lets say if the steem value increase 100% in next month (example only) . Then reward and voting power will increase? As my voting value decresed from $0.10 to $0.07 now

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The rewards will change based on the STEEM price, so yes :)

There are other factors though, so if STEEM drops 20%, it doesn't mean your rewards will drop by exactly 20%.

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Thanks mate with explanation

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This comment has received a 0.13 % upvote from @booster thanks to: @cryptokraze.

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This comment has received a 0.13 % upvote from @booster thanks to: @cryptokraze.

Phenomenal work! Definitely worth an upvote and resteem!

Thank you @calamus056. This was very informative. I have a question please:
How is the effect of the upvote on the rewards calculated? I specifically want to know the relation between Steem power and the amount of the reward it produces.

Can you please help me with that ?

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STEEM POWER is STEEM locked up. There's a limited amount of STEEM available. Everyone that powers up STEEM gets a share of the reward pool. Having STEEM POWER gives you the ability to assign a certain part of the reward pool to content. Does that clarify it?

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Thank you @calamus056. Actually, I knew that.
What I want to know is the exact formula used to calculate the upvote value. For example, if a user with 1000 SP upvoted me, how much would that give me in terms of rewards?

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Oh, i don't think you can accurately calculate that since it's based on how many people are using their voting power.

Currently it seems to be around $0.000425 per SP. Haven't figured out the formula myself yet.

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Oh! I see. Thank you anyways.

Great advice! Keep it up! STEEM ON!

Information rich article. Every minnow and newbie will need to read this. I like how the points are articulated and presented. Welldone.

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Those titles only represent the amount of STEEM POWER they own, not their knowledge. Everyone could benefit from this information :)

Thank's for all of this info. You are right there is a lot of misinformation out there. Thanks for mentioning the external exchanges. One question, if I were to use bittrex would I be able to somehow load money to a debit card and convert it to USD?

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I don't know how Bittrex works, but their are several ways to move this over to USD on a debit card, or bank account.

Highly appreciated information, following you but recharging. Thank you again.

Thanks for the very informative post. Infact, it is top useful post on steemit I have read so far!

Being new to the platform, I have some users keep upvoting every single article and comment. Does it affect their voting power?

And secondly, I have seen that some posts earn some amount and then it keeps decreasing day by day! What is this and how to avoid it?

Thanks again for the great help.

Thanks a lot for the information, I think I will have to read this a couple of times to understand everything and not make those mistakes. Valuable info! :)

thank ypu so much. it makes me understand better of the system. yet there is alot to understand in the new world for me.

This is amazing! For the past week, I had wanted to find out how Steem rewards work, and bing! This shows up on my promoted page... A really wonderful article! Thanks a lot...

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Thanks. Make sure you read my article about curation rewards too.

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Yes, I read that as well. Pretty amazing stuff!
I've been here close to a year, but have become more active recently.

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Same here, i came back a month ago. SteemIt is much better now and still getting better each month.

thanks! I wondered why the rewards were keep decreasing without any changes in votes.

Great article. Many thanks. I am starting to come to grips with most aspects of Steem now!

Great for newbies!! I've just joined so thank you very much kind sir, there's a tonne to learn on STEEM.

Interesting and useful - thanks! :)

Thanks for posting this....good reference.

Excellent resource. Saved and thank you!

Great post. Thanks for the valuable information!

Great article. I was aware of most of it, but its still good to see it all written down and documented like this for clarity. I feel that the STEEMIT folks who created this web site do a crappy job of explaining it all for newbies. New people have to fend for themselves for a while, and it aint easy.

Answers a lot of questions newbies have.
Thanks

Thank you for the in-depth, yet quick over view of Steemit. I will definitely be checking out your other content, thank you for posting.

That upvoting old content does not reward is disturbing.
I can see past author and curator rewards that were paid out.
Upvoting such a blog indeed does not add anything.
That misguides into bringing sensational blogs that catch attention today which nobody cares for next week.

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Yes, I too don't like the fact that there is this 7 day expiration date, as it would seem to encourage sensationalism just to grab attention to cash in quickly. Fortunately, I haven't actually seen too much of this behavior, but I would like to know what the reason is for the 7 day time limit. Does anyone know what its intended purpose is?

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Yes it is, i hate it. It makes me stop working on my articles way way faster. I still work on them for hours though hehe.

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You have good quality content. Keep it up bro.

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Yeah, that's a shame. I didn't know that. I wonder if they will change it in the future. .. So , does that mean that older posts can't earn you anything?

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Yea, it makes the posts much more ethereal and much more important to get hot or trending. It doesn't ready reward keeping good content on steemit.

Thanks for all the effort that went into this post. upvoted @roused

Great post i just learn some new things good work really good job man

"If you edit your content, all previous changes remain in the database forever."

I should really be more careful about typos then. :c)

Is there any point in editing comments or content then?

Thank you kindly for this rather comprehensive guide.

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Yes, editing makes sure it shows the latest version of your content.

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Thank you kindly for the response.

I thought that imperfect older versions might be floating in front of viewers. ^_~

This helped a LOT, ive been here two days and already I feel like a fish out of water, Its good that youve made this, because this will help more people than you can imagine, thanks for the information :)

great piece of info! thx a lot!
new follower+upvoted+resteemed

Ver useful post buddy.. Specially for newbies

Thanks for this!

SBD is worth $1.5 cool!

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Or more :)

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Does the value fluctuate with time?

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If you mean the $ value you see on posts...the article describes what influences that. Also can't harm to read https://steemit.com/faq.html

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Awesome. Thank you. Actually this is my first time on steemit and this was the first article I have read while multitasking reading the beginning of the faq. Yes I meant the $ value, will it fluctuate?

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Yes it will, as both my article and the FAQ state. Keep reading ;)

This post has been ranked within the top 10 most undervalued posts in the first half of Jun 27. We estimate that this post is undervalued by $75.38 as compared to a scenario in which every voter had an equal say.

See the full rankings and details in The Daily Tribune: Jun 27 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.

If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.

We desperately need a wikipedia-type page that will explain all the minutiae of steem & steemit.

Till then, we have you! :P

Upvoted & Followed!

great information .thanks alot

Thanks. great information and much needed at this stage

this information is worth for all of us...people should we educated about all these things ...iam new in here need follows..

Very helpful post. Thank you !!! Resteemed.

I would argue steemit has more the trappings of a multi level marketing scheme than a ponzi.

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No it has more elements of a Ponzi than a multi-level marketing scheme lol.

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Really?

Let's see, it has levels : whales, dolphins, minnows. At each level, your most profitable behavior changes: comment and get followers, post content, curate content. Each level and activity primarily profiting off the layer beneath while using language around joint ownership. It encourages crossfit and vegan levels of self promotion including trying to recruit friends.

In my opinion, a ponzi just doesn't encapsulate all that culture.

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I see what you mean, but it's not really like that. The "levels" are made up by the users and there's no commission, referral fee or whatever.

It's really not a pyramid- or Ponzi scheme in any way. When you completely understand the blockchain technology revolution you'll understand.

Good to know. Thx.

thanks a lot for sharing this post......it was really educating and worth reading.

Just logged on and hit Gold! Thanks for the info. Just what I needed to get started!

@calamus056 You mentioned this:

STEEM Backed Dollars are worth $1.00 USD This is absolutely not true. SBD is traded on the open markets. The current value of SBD is over $1.50!

Either you are incorrect or I just got ripped off.

I went to buy 1 Steem which was valued at $1.42 at the time in the "iternal market". In my history it shows that I was charged 1.42 SBD for 1 Steem.

So I did get $1 USD for 1 SBD.

Can you please explain how I can get $1.50 per SBD so I can get 1 Steem with it?

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You can't get ripped off, the market offers what it offers. The price is very different on the internal market compared to exchanges like Poloniex and Bittrex.

I just looked at the price on Poloniex, you get 0.00078 Bitcoin for 1 SBD, that's around $1.91. Be sure to search for a guide on how to send and exchange on Poloniex or Bittrex first though if you plan on trading it there.

P.S.: Poloniex has problems with STEEM & SBD currently, so i won't recommend Poloniex until it's resolved.

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Thanks. OK so I was just using the wrong exchange. I just checked BlockTrade and they will give 0.00026141 for 1 SBD, about 1/3 what Poloniex is paying. Thats what I mean by "rip off". Some exchanges pay very little while others pay a lot more, 3x more. What a big difference.

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Yeah it's a new and unregulated market with low liquidity, you gotta be very careful.

Thanks for clearing those things up for me. I am fairly new to steemit but I am totally intrigued by it!

As a newb this was great. Thank you.

I've been on here for a few months already, and had only really figured out about half of this on my own. Thank you for some clarity.
Now I just have to figure out the equation for being creative with my content. :^)

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It took me 100's of hours and lots of days with little sleep ;)

SteemIt is extremely complicated.

Nice, post i will stalk you :p (kidding just following you)

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Stalking is fine too :p

This is an amazing post to someone completely new. I still do not understand voting power though. Am i only allowed to upvote a specific amount of posts per day?

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You can vote 100's of times per day, but then you've spent 99.9% of your voting power. It takes 5 days to recharge. Its advised to vote 11 full powered votes per day (to keep voting power over 80%).

http://www.steemd.com/@magnifico to see your voting power (17th row on the left).

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Omg, all this great info I didn't find somewhere else! Thank you so much! I'm also trying to understand the mechanisms of Steemit, which I absolutely love. I was just wondering about this voting power, thanks.

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So, what is the most important factor you should be after as a Steemer - growing your steempower/uvoting/resteeming/having more followers/putting money in savings ?? I'm still a bit confused on what is affecting what. Will read about it more, but this I haven't found yet.

btw you picked and interesting plant as your nick, cool :)

highly oblighed to know that

Wow!!! I enjoyed reading that and learned a lot of facts that I did not know, thank you for clearing up those misconceptions for me.
Eglishman.jpg

Great post. Answers a lot of questions newbies have.

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Not only for newbies :)

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Agree @calamus056! Been here a few months and still learning from great posts like this! keep BOOMIN!

Thank you for your helpful information..

Valuable information.

Really good info here, thanks

Great explanation, a lot of things about Steem are much clearer now. You've got a follower!

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I've got 100's of followers :)

This information is real eye-opener. Thank you.

That is very good info for a new steemit user like me thanks and keep up the good work :-)

That is very involved indeed.
I'm mostly commenting here so I can find this later ;)

You've answered almost all my Steemit questions. Thank you.

It's like these old sims that came without a manual and you're one of those guys who actually sits down and writes it. Good stuff! Thanks.

Thanks for this blog. I will following you.

This is extremely valuable information @calamus056. Thank you for your insight and explanation. Still being very new to @steemit, I didn't know that there is so much intricacy to the upvoting, SBD and steel power.

Wow great post! I follow and resteem :)

So to reiterate the part about curation rewards here for the sake of clarity; the best way to earn curation rewards is by upvoting content that is about 30 minutes old, has less than 5 other votes and if you vote less than 11 times per day.

If I got something wrong please correct me.

my mind is blown... in fact, i have a headache after reading this... over time I'll probably get it... one day ..

Excellent post. It really really cleared many of my steemit related doubts.

great to find many questions answered in one place

good job! :)

I knew about 1/3 of this and that's generous. Followed.

Everything I just read is 100% good for a newbie like me... Good article and can't wait to get started..

Very insightful. Thanks. Want to read all your posts now :O

This is a helpful content and answered some things that were on my mind.

good post thanks for the info it really cleared things up for me

Impressive. Enjoyed the article. Good read for a new SteemIt user

Excellent read! As a newbie here, this has answered a lot of my questions.

Thank you!
-Kim

Great post! Thanks for the clarification. I know I definitely needed it.

Excellent content for the new comers, thanks for stitching it together.

thanks for teaching me.

Quality Information

This was very helpful thank you..

STEEMIT explained....

I believe ICOs are the new IPOs
Cryptocurrency exchanges are the new forex exchanges
Bitcoin, Ether, Steemit ... are the new precious metals
Put your money where the party is.
Follow @BlockRush for Blockchain news

This is very interesting. I don't know much about steemit, so I appreciate finding this.

Plenty of things I didn't know!!! Thanks

Very informative. Thanks!

Thank you for the advices!
Really interesting for me as a newbie :)

Very nice read. I definitely learned a lot! Followed and upvoted. :)
Keep on steemin'!!!ヽ(´▽`)/

Good stuff! This is worthy of Re-Steem :)

great article

Thank you for this post. This helps a noob like me understand a but more about steem.

Thank you! Resteemed!

That is harsh info
Thanks for your hard work and dedication

Absolut great highquality information post @calamus056 !! 😎✌
#upvoted and #resteemed
I also shared on Facebook too to spread the word and support this great community !! ✔
Thank you very much for your time and informations !!
Have a nice evening from Cologne Germany my name is Lars @laloelectrix

I am trying to learn a little bit everyday. This article was very helpful...thanks for posting! Resteemed and following you.