How to Power Down Your STEEM POWER The Smart Way

in #steemit4 years ago (edited)

steem

How to Withdraw STEEM POWER

Withdrawing STEEM POWER from your steemit.com account requires you to initiate a process so called Power Down that starts converting your STEEM POWER to STEEM tokens that you can transfer to other users or withdraw and sell. When you initiate a Power Down your current STEEM POWER will start to get converted in 104 equal parts and each of these parts will be available to you in the form of STEEM.

The first portion of STEEM will be available in your Wallet after exactly one week, then in another week you will get the second part of the 104 and so on with the process taking up 2 years or 104 weeks to complete. At any time you are able to Cancel Power Down from your Wallet the same way you initiated it, but the advice is to stop it once you have been paid one of the 104 installments.

Why Would You Cancel Power Down

The answer is pretty simple, once you initiate a Power Down your current STEEM POWER is taken into account and divided in 104 parts and each week you will be getting 1/104th. However your STEEM POWER will continue to grow as you will most likely continue to use the website and there is also another way that it also grows by itself - STEEM POWER has an interest rate, so you earn more by just holding it.

So after you get a weekly payment you can Cancel Power Down and then right after that initiate Power Down again from your wallet in order to take into account the new amount of STEEM POWER you already have accumulated in your account...


steemstats

Initiate a Power Down Now and Keep It On

You are probably not aware of the fact that no matter how much STEEM POWER you have in your account the interest it generates for a week will always be more than 1/104th of your holdings that will be converted from STEEM POWER to STEEM if you Power Down. You can get an estimate on the interest rate and how much will you be earning and what is the Power Down installment for your account with the help of the website SteemStats.com, all you have to do is enter your steemit.com username and go to the Steem Power tab.

So you earn more interest on your STEEM POWER in a week than you will get back as STEEM tokens on a weekly basis when you initiate a Power Down. This means that even in a Power Down mode you are still increasing your STEEM POWER over time and thanks to getting back a portion back in the form of the liquid STEEM token in your wallet you would be able to do more and be more flexible.

The conclusion is that you can be in a constant Power Down mode without losing anything from it, it can just slow down a bit the growth of your STEEM POWER, but you will be more flexible as you will also have some liquid STEEM tokens. Of course once you get back STEEM tokens you can at any time use them to Power Up and thus convert them back to STEEM POWER. Just don't forget to do a Cancel Power Down from time to time after you get a payment and reinitiate Power Down right after that in order to take into account your new Balance and recalculate the new value of the 1/104th installment.

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Its kinda suck that i have to wait 2 years to get all my steems out, is there any other way to get my steems out one time quick?

I mean, it "sucks" but it's also very helpful for the network. You care about the network, right? ;)

I care about my money, i dont want it to be stuck in there for 2 years.

The good news about that: don't power up your STEEM. Then you can withdraw it at any time :) The "influence" you get by powering up does not come at any cost! At least it's not like the DASH network where you must have 1000 Dash units (~$181,000 today) in order to stake some sweet rewards and influence :D

to cash out / exchange steem for btc usually requires a 10 steem minimum (at least on blocktrades)

Robert, I'm still trying to get clarity on one thing. I've read the white paper; I just want to be sure. If I power up to, for example, 20 Steem power, can I lose those tokens through broadband use? I know that I can lose voting power and have to wait to recharge. I'm fine with that. I just want to know whether I will always have 20 Steem power, regardless of votes and content, until whatever time I power down. Thank you.

You never lose steem, when you power up, it just converts your steem to steem power, which gives you higher rewards for voting on other peoples' posts. You're SP is not used up by voting, but the weighting of your votes will deplete and recharge as you vote and time passes. Your SP would only go down if you were to power down, in which case you are really just converting your SP back to Steem. You would receive installments when you power down, but in total you would never end up with less steem than you put into SP.

Thank you. And one Steem Power converts back to one Steem? If so, I will gladly convert it all to SP, since it sounds like it will grow at the rate of Steem, plus earn interest.

Yep, you always keep what you have, it just converts bacl and forth between Steem and SP.

If everyone could take their cash out at once tomorrow there would be no more money to be made or talk about. The bigger picture is keeping the tree alive so that you can keep harvesting from it. Not cut it down after the first harvest.

I kind of like my money so i can buy a house or something big, 2 years is not going to cut it for anybody.

I guess we could use earned STEEM for coffee, and use bitcoin or ether for house and car : )

We run a steem meetup on the last Thursday of each month, in the beer garden at the Jade on Flinders St.

Next one is on March 29th, from 6pm.
Please join us any time you're free, or hit me up if you have any questions.

If you like your money - keep them to yourself but don't expect to gain anything either. It's a simple life's truth - you gotta be willing to give to profit from anything.

Good job on the account brother, if you power down now you will have passive weekly salary (:

Exactly! Well said. We are creating our own value, and we need to protect it from vultures for everyone to prosper.

Not 2 years but 3 months.

It's 3 months, this is a really old article

right. it's 14 weeks as far as I know

Oh wow kl is it still 3 months?

Its is good for the steem economy because it keeps people invested in it. You can always keeping making money so that every two years you get another payout.

I've written about this as well, and completely agree that Powering down can be very useful.
I would disagree with one thing. What you are powering down are VESTS. Not Steem Power. Steem Power reflects vests. And vests don't grow unless you participate on Steemit.

https://steemit.com/steem/@mctiller/the-power-of-powering-down-what-i-learned-after-powering-down-for-two-weeks

Isn't it true that Steem Power also doesn't "grow"? Also, are you saying that a "powered up" steem unit is then considered a "vest" unit? Thank you! :)

Does it mean that I have to write something in order to get the reward? It is a bit confusing...

This is a quite comprehensive, at least now i know how the power up and the power down process works

Anyone who knows what is the benefit of keeping steem on the steem platform? Does it act like a wallet of some sort?

I was exactly looking for this! It's really an amazing mechanism. One can live from this haha Thanks @cryptos :D

The article is the missing part of Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy.

After reading this two articles, finally I understand how steemit works.

wow 2 years ? thats long

Awesome ... like compound interest!

Great post. I think I may have to start using this method. ☻

thanks for the great info. i now know more about steemit

question, under your steem power balance it say (+27.569 STEEM) what does that exactly mean, is that added on to your balance when u power down?

This was very helpful, thank you. I was feeling like quite the noob hehe well I am a noob here but, thanks to this post, I'm a little but more savvy now ;)

I honestly don't completely understand, I have something like $650 SteemPower, and everything I post gets absolutely ignored, even original music, posts with good content, some folks getting 100s of dollars for mediocre posts and I feel like I must be doing something wrong. After being here about 3 months, I'm not sure I see this as a sustainable platform where 3% of the users are taking 95% of the money. I think however long it takes I am going to begin the process of powering down. I will see what happens, I can always power back up if I suddenly become noticed. It reeks of a ponzi scheme, I am definitely a noob, but I want to get as much out as I can before this thing falls apart. Trying to talk my friends on FB or wherever to come over but why? Steem users are only "upvoting" posts that they think will go higher, it seems to be a rigged game. If you understand this thing any better than me, please let me know what I am missing, you are at 43 now, I am at 42. How are your posts going?

I read somewhere the other day that (I THINK it was Powerdown) doesn't take 2 years anymore, is this true?
I think the person said it was 3 days, 3 weeks or 3 months. I am unsure.

thank you, interesting to know, still getting to grips with it all

Wow interesting, thanks for this information

Like the idea of turning it on for one week then back off I might have to try that thank you.

I did not realize your steem power would grow while powering down. I think your vest would decline though correct? I guess that explains this
https://steemit.com/steemit/@dennygalindo/32-of-top-50-accounts-powering-down

It will still grow, because the interest rate is higher for a week than what will be Powered Down for the same period (1/104th of your total STEEM POWER as STEEM tokens). You can check the exact numbers for your account on SteemStats.

Yes, that would probably explain why the whales are also powering down... :)

It's interesting , I joined just before a lot of people and seem to get interested in topics just before the masses. I think everyone might start powering down since the price has fallen. They'll still post but don't need all the compound intrest. Interestingly if the price falls too far I bet you see a surge as everyone powers up again.

Actually you probably did not notice, but STEEM and Steem Dollar prices are currently going up, unlike most other crypto currencies that are in a downward trend in the last few days...

I watch it closely I think the Chinese may be buying overnight. Let's see what happens when all those Steemdown whales get their payouts.

this sounds so confusing, in any case i will check out this steemstats for myself and see what it says about my account

Very helpful. Thanks.

This helped me out, I have been wondering for so long what "power down" meant

I found this to be very helpful. Thank you! Next, I will find out what the positive value means in the steemit.com UI. This is the value under the Wallet area's STEEM POWER which is in parenthesis. For example: (+6,223 STEEM) ... any idea?

You are most likely referring to "Delegated Steem Power"
https://steemit.com/steemit/@zeljko2/delegated-steem-power

Very interesting and informative post thank you, I've nearly got the hang of it now, so shall try on some of the advice given. I'm in it for the long term!

Where can I find an updated guide ?

nice... thank u

OK, got it, too bad we cannot get everything out at once.

Thanks for the info

Thanks for this post. I know I'm late to reading this, but it was very helpful.

tulisan anda sangat menarik

It says 13 Weeks now?

Was that an update since this Post was written?

I assume as result the PowerDown would work as intended now and the SteemPower would accually get to Zero someday?

Thank for your information. Very useful for me become wise to manage my steemit account.

Thanks this post i research how to power down because i like to withdraw my steem power soon i have 33 steem power i want it to withdraw

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