Now, That 1 SBD Trades Below 1 STEEM, Is It Better To Set My Rewards To 100% Power Up?
The short answer: it depends.
The long answer: well, you may still get a higher ROI if you stick to the standard 50/50 rewards model.
Suppose you're getting 10 STU (Standard Token Units) as author share from a post, after we already deducted the 25% for curation (for simplicity).
From that, you get 5 SBD, as the first 50%.
Then you get 5 STU / $5.8 (the current price of STEEM) = 0.86 Steem Power.
Now, if you sell your SBD, you can still get 5 / 1.002= 4.9 STEEM, that you can power up as Steem Power.
Total: 4.9 + 0.86= 5.76 Steem Power.
If you're choosing rewards 100% Steem Power, you get 10 STU / $5.8 = 1.72 Steem Power.
As long as SBD trades above $1 SBD, you will get a better deal at gathering STEEM if you choose your rewards 50/50.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I know the feeling. That's why I created steem.supply, an easy to use and accurate tool for calculating your Steemit rewards |
The good thing about STEEM getting higher though is that people will now also start focusing on getting more curation rewards rather than just author rewards. This will benefit the community as a whole as people would start getting more upvotes.
yeap, good call
Thank you for explaining. I get this question on a daily base from my friends. Now I can tell them for the purpose of easyness:
This is exactly what I was going to point out!
thanks you so much @dragosrous for posting this, i 'd like to know more about curation rewards,even if i view my steem suppply to check them,i still fail to understand them.i look foward to hear from you
steem.supply doesn't show curation rewards, only post and comments rewards. Have a look at the description of rewards here: http://steem.supply/rewards
This is likely to get lost, but even if SBD goes below 1 USD, I would still be doing 50/50 and using the convert button (this does have downsides in that you have to wait 3 days though). 50/50 just gives more flexibility than not.
The "Convert" option has been taken out, after the SBD pump. Other than that, yes, 50/50 is more flexible.
yeah and if nothing else use SBD to buy BTC as long as it's trading above $1. Historically BTC had outperformed Steem so as long as that keeps holding true you have that option as well.
If Steem starts to take off then you can always convert from BTC to Steem.
I am so glad to read @dragosroua post.
success is always for @dragosroua.
Well, @cheetah spoted you, so you better stop spamming :)
Thanks for clearing this up. I’m sure a lot of people where wondering about this scenario including myself.
I'll keep 50/50
thank you for sharing ♥
merci bien ça ma vraiment impressionner
I did not think it would fall below 1, as you said now the value of the SP is that it shows