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RE: Boost Steem Value by Backing Steem Dollar
In my two years plus in crypto. I have learned many people don't like to hold long term, at least whales. They like to come in, make their money and then get the hell out. Except Steem is not the usual crypto. Since it's made to be held longer term. From what I learned. My friend @kingarbinv and I are part of the Coin2 Crypto for gaming. Our core holders are holding long term till we get out games out. Yet we faced the same that Pump and Dump the heck out of our coin2. I see Steem as an awesome currency, and the kind that can't just be dumped, like so many. I still have a lot to learn. Yet I believe I'm starting to understand it more with every word I read from all you smarter people. thanks for this info @dantheman , its really good.
There is no way to get out of steem, your SP will always grow whether you cash out every week or not which is why the system is flawed
Wrong. If you cash out every week, but do nothing else, you'll be out after 2 years, entirely.
That's why smooth and most of the whales have done just that and their steem power is higher than 2 months ago. Just do the math, divide your SP balance by 104, then see how much steem power you earn in one hour multiply by 24 then again multiply by 7 and you will end up with a number higher than the first number you got by dividing your balance by 104 which means you earn more steem power every week than what the actual power down gives you, so your balance is growing regardless.
It's an illusion.
You need to DO SOMETHING to earn more underlining VESTS. If you're doing nothing and you're powering down, your VESTS will be converted to STEEM linearly every week. Which means you'll get more STEEM every week than last week for same amount of VESTS converted. After 104 weeks your VESTS will become zero, thus be out completely.
Check this link: https://steemdb.com/@smooth
Indeed VESTs are an illusion. They are of no use, you can't trade them and they are diluted over time anyway. What's the point of trying to have more VEST than others ?The only thing that matters is how much your steem power are worth, VEST are useless even more so when there is unlimited SP to kill the price.
The 2 year power down is calculated based on your steem power not VEST but even assuming you meant out of VEST entirely after 2 years. Then you will still have a lot of steem power so you won't be able to get rid of all your steem power ever, they will always grow and so the price of steem will always go down. That was my point
On the contrast, number of VESTS is the underlining/basic data. Another basic data is VESTS:STEEM conversion rate.
The Steem Power number shown on steemit.com is a derived data, which is calculated with a formula :
SP = VESTS * rate. It just has better looking.So when you have no VESTS, the number of SP will show zero.
All those voting / curation reward calculation are based on number of VESTS.
When you have not enough VESTS, you can't vote.
When you have no VESTS, you do nothing. Yes, nothing, can't post, can't transfer..
It's in the code.
Have you read the whitepaper? Link is here: https://steem.io/SteemWhitePaper.pdf
The number of vest needed to participate is ridiculously small, the free steem power when you register covers it anyway.
Basic or derived data it doesn't matter, if the data is correct then it means that my steem power will keep growing while my vest will keep decreasing which means I will have unlimited steem power. I did the math with the data I was given from the site. Someone who have 1700 steem power will earn 70 steem power every week and will be able to cash out 16 steem power per week so it means that even when cashing out every week the steem power will grow.
If the data provided by steemit.com is false and that I actually have a lot less steem power than my wallet displays then it is a totally different story but i doubt it very much since nobody is complaining about it.
I'm telling you the math..
If you're powering down, every week the same amount of VESTS are converted into STEEM for you. You'll be left with less VESTS although it probably "worth" more STEEM (shows as SP). You won't have unlimited steem power, since there is a turning point.
When you started powering down, you get MORE liquid steem every week. For example, if you have 10400 STEEM worth of SP at first (which is actually X amount of VESTS but the exact X doesn't matter), now you started powering down. To be simple, assume the conversion rate increases by 3% every week (actually current value is about 4%, but the speed of increment is slowing down day by day, the final speed at equilibrium is about 0.7%)
(10400/104)*(1+3%)=103STEEM out, leave10400*(1+3%) - (10400/104)*(1+3%) = 10400 * (104-1)/104 * (1+3%) = 10609STEEM worth of SP in your account(10400/104) * (1+3%)^2 == (10609/103)*103%=106.09STEEM out, leave10400 * (104-2)/104 * (1+3%)^2 = 10,821.18STEEM worth of SP(10400/104) * (1+3%)^3 = 109.273STEEM out, leave10400 * (104-3)/104 * (1+3%) ^3 = 11036.543STEEM worth of SP(10400/104) * (1+3%)^4 = 112.551STEEM out, leave10400 * (104-4)/104 * (1+3%) ^4 = 11255.088STEEM worth of SP...
(10400/104) * (1+3%)^50 = 438.391STEEM out, leave10400 * (104-50)/104 * (1+3%) ^50 = 23673.093STEEM worth of SP...
(10400/104) * (1+3%)^100 = 1921.863STEEM out, leave10400 * (104-100)/104 * (1+3%) ^100 = 7687.453STEEM worth of SP...
(10400/104) * (1+3%)^104 = 2163.074STEEM out, leave10400 * (104-104)/104 * (1+3%) ^100 = 0STEEM worth of SP in your account. But if you didn't set withdraw route in advance, you can't even transfer the 2163 STEEM to another account. However you can stop/cancel the powering down at any time before your VESTS hit zero, but after that when you restart powering down, it need another 104 weeks to complete, which means you'll get out less STEEM every week (in comparison to the number before stopped powering down).In regards to this:
Currently, if you have only 3.5 SP, you can vote a few times a day. If you have more you can vote more times. So for tiny accounts, it's able to participate, but the level of participation is limited.
And, if you've read the whitepaper, you'll know there is another bandwidth limit designed in the system which will only show when the system is getting much more busy than present, however I don't think we'll reach that limit in the near future, so we can just ignore it for now.
Shhh... Steemarians will have none of this logical talk!!