My Experience With MinnowBooster Delegation

in #steemit5 years ago (edited)

Screen Shot 2017-07-21 at 11.52.45 PM.png

[ @bulleth commented and pointed out a few errors I had in my post. (I told you I might have missed something!) I have updated them and it turns out to be an awesome deal! I do mention a few clarifications that I missed my first go. Bottom line: I would do this again. ☺️]

Delegating STEEM POWER! 🚀

STEEM has a number of bots around that can be used in various ways. When I saw minnowbooster, it looked like an interesting concept from the investment perspective. I decided to give it a try and fill a few orders. You can find out about it yourself from the various posts on the minnowbooster page.

I found three that were not crazy big and loaned out my Steem Power for a total of 230.625 STEEM. I guess STEEM has to round up for this because my total is actually 231.315 STEEM? I am not really sure why the number is so random. Oh well, just going with it.
Screen Shot 2017-07-21 at 11.56.15 PM.png

Here are the three loans I did:

12 days ago | Your delegation for 1 weeks 65.0 SP to @livingwaters was completed.
11 days ago | Your delegation for 4 weeks 100.0 SP to @rtdcs was completed.
11 days ago | Your delegation for 4 weeks 62.625 SP to @farhanali was completed.

As you can see I did two delegations for 4 weeks and one for just a single week. The single one just completed so I wanted to use it as the example. I should have taken a screenshot of the market request when I filled it but I didn't. So you have to take my word on the payout. It was set to be 4 STEEM 1 STEEM for the 65 STEEM after the week was complete.

Getting The Payouts! 💰

I started getting daily payouts from minnowbooster. I had some confusion here because I thought this was a dividend that I daily earned and then the total 4 STEEM 1 STEEM would be paid out at the end of the week. Mistake #1. The daily payout IS a portion of the total payout.

So for my 65 STEEM during the first week I received 0.129 STEEM per day.

Screen Shot 2017-07-22 at 12.08.33 AM.png

I Must Have Missed The Fine Print

Ok. The math isn't working like I thought but maybe I am wrong. Maybe it increases as the days progress or there is a big payout in the end. Well, daily I kept getting the 0.129 STEEM for that delegation for a total of 7 days.

In the end my 65 STEEM delegation through minnowbooster got me 0.903 STEEM.

That is 3.097 STEEM less than the market delegation told me I would receive during the week of delegation. Not exactly what I thought I signed up for. Well, I am new to this and maybe I misread something or didn't read the fine print. I have been wrong before...

UPDATE: I was wrong on this! The 65 STEEM delegation had a payout of 1 STEEM which after a 10% fee to the delegator got me .903 STEEM. This actually changes things and makes this a great deal!

So at the end of the week of delegation I get a message from minnowbooster to remove my delegation. Great! Let's do this and then I should see it back in my account.

Screen Shot 2017-07-22 at 12.14.00 AM.png

Be Aware of The 7 Day Delay 🕑

Ok. I clicked the link and removed the delegation and nothing happened. Well, something happened on the blockchain but not to my account. Again another oversight in this arrangement that could be completely my fault. It takes up to 7 days to get your SP back to your account after removing the delegation. Ugh... Ok. Maybe this explains the low starting payout and maybe the payout will continue over the next week to get me up to the 4 STEEM that I signed up for. No Luck. My next days payout only included the 2 other 4 week delegations I added as you can see below. (Again: I was wrong on the amount and I got 1 STEEM instead of 4 STEEM for my first delegation. All is well.)

Screen Shot 2017-07-22 at 12.20.03 AM.png

I still have the other two delegations running the next few weeks and I am still waiting to get my 65SP back from the expired one. (I have to mention that this delay has NOTHING to do with minnowbooster and it can't control it.)


So that is my experience. Was it bad? No. Not necessarily. It gave me a way to earn some STEEM while loaning SP to others. It turns out that it is a great deal! The arrangement is confusing and there are a few details that I think people need to be aware of before attempting it. I also understand that I might be missing something. This was my first attempt and maybe I didn't quite understand all that was involved on the earning potential. I honestly would love feedback or clarification from anyone that has better knowledge than me on using minnowbooster or loaning SP.

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Thanks to delegate me some SP:)

I wish you success!

Sure thing! You should post about your experience.

Very informative n juicy post thanks for sharing ur experience

@reggaemuffin got you a $1.86 @minnowbooster upgoat, nice!
@reggaemuffin got you a $1.86 @minnowbooster upgoat, nice! (Image: pixabay.com)


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Interesting, i'd like to know how the leasers of sp are doing? I'll post my results soon!

Awesome!! I really want to know how people are using the STEEM they are getting delegated.

I am afraid to even upvote now. I paid 10 steem to minnowbooster and i got 650 sp .... do I have to pay that back if it gets used? Is it borrowed and then I owe more?

No. You don't have to pay back for any votes you make. You can use it however you want. You paid the lender for it when you sent the 10 STEEM. That is all you need to pay.

Hi Dayne, Bulleth here from MinnowBooster support. Thanks for the feedback, much appreciated.

I think what's happened on your payout surprise, is you've mixed up the return on your 65 SP/1 week contract with the return on your 100 SP/4 week contract. Using default pricing, it costs a user 1 Steem to rent 65SP for a single week. If they would like to rent for 4 weeks, it is a slightly better deal: they get 100 SP (instead of 65) at the same rate of 1 Steem per week.

We also charge the deleagtor a 10% fee, this is why your return on the 1 week contract was ~ .90 Steem and your return on the standard 4 week contract, net of fees, will be ~3.6%.

Hope that makes sense, we have taken your feedback on board and dev team are implementing changes to make everything a little clearer on the confirmation screen (including the 7 day cooldown).

Regards,
Bulleth.

PS if you have any more questions you can find me on the MinnowBooster discord server

@bulleth I updated the post and thanks for commenting. It makes more sense now that I got the numbers right. :) In fact, I just filled another order!

Thanks mate, that's awesome. It was a very balanced piece to begin with, but appreciate the edit anyway!

Great to have you back filling orders too XD

Hey @bulleth !

Thanks for clearing this up.

I think I may have an issue with my order? Sent 10 steem for 4 wks and only got 250 SP ?

Is this wrong? Only been 1 day.

Thanks!

@mikev

Thanks for the response! You might be right on the confusion of the amount of Steem for the delegation. I tried to look back for the amount and I can no longer find it.

In fact, the more I think about it I might have confused the payouts. I am going to update my post to reflect that.

I have a question about the sending 10 steem to minnowbooster
I didn't know how that worked and then went on to a post and decided to upvote and to my surprise was a slider bar. I scrolled it down to just .06 on that vote. Then I went back to my wallet and say 650 sp in quotation marks.....
Now I am worried....!!!! did i make a mistake? I don't have but what is in there. will I owe anything of that that I use? will it just take it back in a week? I am not understanding how this works. Please let me know what I have done..... ????!!!!

I'm sorry I missed this article @daynewritght. I've seen some good results with the minnowbooster delegation, and am getting ready to start another four weeks.
I hope to see more about your experiences.

I have a question how this SP delegation works. I gave 500 SP, for 4 weeks, with ARP 41%. now i am getting 0.643 steem per day. BUT, THE FEE was 20 SP. So, in my calculation at the end 4 weeks, it may not payback the fee that was taken. The question is what is the benefit out of leasing 500 SP after 4 weeks? Unless i miss understood the whole process, there is no gain to the leaser with small number of SP such as my example. I hope you got my question

@wegterfx . You are getting .643 STEEM over the course of 28 days. This totals to ~18.004 STEEM. Currently minnowbooster gets about 10% which would put you right on track.

"Currently minnowbooster gets about 10% which would put you right on track" would you elaborate what do you mean by that? am kind of new just want get it understand. Thank you.

Sure! You can see the details on the first post by minnowbooster here: https://steemit.com/minnowbooster/@minnowbooster/introducing-minnowbooster-beta

Screen Shot 2017-07-25 at 3.17.13 PM.png

So this comes out of the 20 STEEM awarded to you over the course of the loan from my understanding. It looks like the hope is to change this but currently it is around 10%. So this means that even though the total payout states 20 STEEM it will end up being around 18 STEEM once your 4 weeks have completed.

let me put in this way.
I offer my 500 SP for delegation for 4weeks. I was charged 20 SP at the beginning. Meaning i am short of 20 SP (now 480 SP). I am getting 0.643 perday and multiply that by 28 days or even 30 days i will not get 20 steem to payback the fee. my question is this delegation thing is not benefiting for small quantity of SP such as 500 SP. if i cancel it now i loss the fee. at the end i would be loser from this process.

I was charged 20 SP at the beginning. Meaning i am short of 20 SP (now 480 SP).

Ahh..I think you misunderstand. I looked at your account and I do not see a charge for 20SP. You are not paying anything. You are loaning out 500SP and then getting 20SP minus 10% fees after 28 days. There is no charge to you as the lender.

Actually... I see now that you have (-480.615 STEEM) instead of 500. Hmm... Maybe @bulleth or @reggaemuffin could help in the discord chat.

I need to ask how this (+688.264 STEEM) that I have now in the steempower part of my wallet.
Is that borrowed and has to be repayed? and do i owe more back
How does this work? I sent 10 steem and got 650..... before I understood or even thought how it workd

So , you did not get the 4 STM?
Her is a tool to track when delegated SP returns to your account in case you want to use it
https://steemit.com/delegating/@elautomatico/delebot-reports-20170721-beta

Actually I got my payouts confused and got 1 STEEM for my 65SP delegation. I updated the post as well. A learning experience for sure. :)

Upbork for you!

BORK! BORK!

Long live the upbork! 🎉

There is no bad experience ever, Either you Earn or you Learn !!

There is definitely power in knowledge. 🎓

LOL I have become very aware of the 7 day delay :(((

Yeah. I still don't quite understand the purpose of it. Is it to discourage delegating your Steem to others?

It is to prevent double voting with the same SP. The cooldown period is equal to the rewards pool window, making it impossible to upvote your post, delegate to a second account and then upvote the same post with the same SP :)

Ah...yes. That does make sense. 👍

Yep. Mostly so you don't delegate, then undelegate continuously.

Thanks bro great infrmation, now i´m trying

How do I use this

@samstickkz: You can check here for market orders to fill: https://www.minnowbooster.net/market

If you find one you want to fill then go through the process on the site and part of your Steem Power will be delegated to that user. Daily you will get a payout.

I have a question about the sending 10 steem to minnowbooster
I didn't know how that worked and then went on to a post and decided to upvote and to my surprise was a slider bar. I scrolled it down to just .06 on that vote. Then I went back to my wallet and say 650 sp in quotation marks.....
Now I am worried....!!!! did i make a mistake? I don't have but what is in there. will I owe anything of that that I use? will it just take it back in a week? I am not understanding how this works. Please let me know what I have done..... ????!!!!

All is well! 😎

It sounds like you did an order for getting delegated SP to you. That means you said "Hey... I am willing to pay 10 STEEM for being able to have the power of 650 STEEM for 1 week."

Minnowbooster said: "Sounds great! Let put this request on the market I created and see if anyone that has 650 STEEM will let you borrow it for 1 week and I will give them the 10 STEEM for allowing you to use it."

Lender (another Steem user): "Cool! Someone is willing to give me 10 STEEM if I let them borrow 650 of my STEEM for 1 week. That means that I won't be able to use it for that week but that is worth the return I get from them. Sign me up!"


So what has happened now??
  • You paid 10 STEEM to get the power of 650 STEEM for 1 week.
  • Now when you vote the STEEM community looks at you as having 650 STEEM and once you are over 500 you are able to set the percentage weight that you vote. Before that you were voting 100% every time.
  • After 1 week is up the delegated STEEM will go back to the user that let you borrow it.
  • You can use it however you want until the week is up.
  • You do not have to pay anything else.

so it is okay to use this on upvotes? I only forfeited the 10 steem?
How do they get their 650 sp back?

Correct. They get it back because they still own it. It is just delegated to you. It isn't yours. That is why it shows separate on your account.

You are borrowing it.

okay... It still is hard to understand. This steem is very different from anything I ever have done before. I am a person who is honest and wants to treat others like I want to be treated, so that is why I wanted to be clear about all of this. So I dont feel like a criminal. or theif

👍 It is a little complicated for sure!

Maybe this will help: Try to think of it like renting.

Let's say you build widgets (upvotes) but you don't have all the tools (STEEM) you need to make them really valuable. Without these tools your widgets are cheap. You could buy tools but you don't have enough money. So there is another option. You could rent the tools you need from someone that has it. So you pay them a fee (10 STEEM) to rent the tools (650 STEEM POWER) for 1 week. Then you can use the tools (STEEM POWER) to build your widgets (upvotes) and they are so much more valuable.

After the 1 week is up you return the tools (650 STEEM POWER) and all is well. You can't build the widgets as well as you could when you had the tools but you didn't have to buy the tools. All you are out is the initial rent that you paid.

Ehh... that isn't the best example by a long shot, but trying to think of ways to explain it. 🙃

I feel much better now thank you so much for your patience with me. :)

thank you so much for relieving me

I just don't understand this.. I thought that I would earn it somehow over a period of time and get something, I didn't know they would loan me 650. To me a loan has to be repaid and I went into panic mode. I don't have 650 dollars

Thanks for sharing! I have been looking into whether or not minnowbooster delegation is a good idea. Thanks for the information!

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