How to Power Down Your STEEM POWER The Smart Way
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...
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.
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?