Ooo that makes me think that another way to describe it is as your 401K (tax-free retirement accounts in the US). It should be thought of as a retirement fund. Thanks for the idea ;)
andrarchy your saying 1 steem power = 1 steem when you power down payed out in equal payments over 104 weeks so that is 0.0096153 steem per week if you powered down 1 steem power .
Here's an example let me know if this is correct lets say 1 steem is worth 5.00 dollars on bittrex so therefore 1 steem power is worth 5.00 dollars
1 steem power = 5.00 us dollars
1 steem = 5.00 us dollars
So when I power down lets say 1000 steem power and steem is trading for lets say 15.00 dollars on bittrex 1000 steem X 15.00 dollars = 15000 dollars so 15000 dollars / 104 weeks = 144.2307 dollars a week for 104 weeks assuming steem was a steady price of 5.00 us dollars every week for 104 weeks.
Now this leads me to another question on the day I power down the 1000 steem power is my 1000 steem power converted to steem at the price of steem that day and then payed out over 104 weeks or is it prorated every week for 104 weeks ???
As we all know cryptocurrencies are very volatile so I for one think the community needs to know if your steem power is priced all on the powered down day or prorated , so we each can make are own plan of powering down
me-tarzan
After you elect to "power down" X steem power, a week later X/104 IOUs (Steem Power Units) are removed from your Steem Power account and you are transferred X/104 Steem. Those X/104 Steem will be worth whatever the market rate for Steem is in the present moment. So yes, if you power down and a week later the value of steem plummets right before you are going to receive your Steem payout, then yes the Steem you receive will have a low price. BUT if 3 days later the price of Steem spikes, then obviously the "cheap" Steem you received three days ago will now be worth whatever the new price is. For steem power the time at which it is converted into Steem is IRRELEVANT. To understand this, think about Steem Dollars. For Steem Dollars, the time at which you convert IS relevant. For example, let's say Steem is having a bad day and it is trading for 10 cents. That means that if you cash out 1 Steem dollar, the Steem system will give you 10 Steem. If the next day the price were to jump to 50 cents, the Steem you received yesterday went up in value 500% and you made a very good profit. And if you were to cash out another Steem Dollar on that day you would only receive 2 Steem. None of this happens when you are dealing with Steem Power because 1 unit of Steem Power is equal to 1 Steem. Price is irrelevant.
Ooo that makes me think that another way to describe it is as your 401K (tax-free retirement accounts in the US). It should be thought of as a retirement fund. Thanks for the idea ;)
andrarchy your saying 1 steem power = 1 steem when you power down payed out in equal payments over 104 weeks so that is 0.0096153 steem per week if you powered down 1 steem power .
Here's an example let me know if this is correct lets say 1 steem is worth 5.00 dollars on bittrex so therefore 1 steem power is worth 5.00 dollars
1 steem power = 5.00 us dollars
1 steem = 5.00 us dollars
So when I power down lets say 1000 steem power and steem is trading for lets say 15.00 dollars on bittrex 1000 steem X 15.00 dollars = 15000 dollars so 15000 dollars / 104 weeks = 144.2307 dollars a week for 104 weeks assuming steem was a steady price of 5.00 us dollars every week for 104 weeks.
Now this leads me to another question on the day I power down the 1000 steem power is my 1000 steem power converted to steem at the price of steem that day and then payed out over 104 weeks or is it prorated every week for 104 weeks ???
As we all know cryptocurrencies are very volatile so I for one think the community needs to know if your steem power is priced all on the powered down day or prorated , so we each can make are own plan of powering down
me-tarzan
After you elect to "power down" X steem power, a week later X/104 IOUs (Steem Power Units) are removed from your Steem Power account and you are transferred X/104 Steem. Those X/104 Steem will be worth whatever the market rate for Steem is in the present moment. So yes, if you power down and a week later the value of steem plummets right before you are going to receive your Steem payout, then yes the Steem you receive will have a low price. BUT if 3 days later the price of Steem spikes, then obviously the "cheap" Steem you received three days ago will now be worth whatever the new price is. For steem power the time at which it is converted into Steem is IRRELEVANT. To understand this, think about Steem Dollars. For Steem Dollars, the time at which you convert IS relevant. For example, let's say Steem is having a bad day and it is trading for 10 cents. That means that if you cash out 1 Steem dollar, the Steem system will give you 10 Steem. If the next day the price were to jump to 50 cents, the Steem you received yesterday went up in value 500% and you made a very good profit. And if you were to cash out another Steem Dollar on that day you would only receive 2 Steem. None of this happens when you are dealing with Steem Power because 1 unit of Steem Power is equal to 1 Steem. Price is irrelevant.
Andrarchy Thank you for your reply
ME-TARZAN
GOLD! Good to know there are other HoC fans on here :)