So, How Much You Get Now In STEEM, How Much In SBD? A Small Rewards Breakdown

in #steemit6 years ago

As you already noticed, since a few weeks ago the rewards on Steemit are coming in 3 different types of currencies: STEEM, SBD and STEEM Power. This is closer to the initial model the platform was built with and it is a consequence of the price feed bias adjustment from the witnesses.

I won't rephrase the details about the price feed bias, suffice to say, for the purpose of this article, that if the average price feed bias submitted by witnesses is over 0%, then more SBD than STEEM is printed (hence more SBD will make it into the rewards pool). If it's 0%, then the rewards are split like this: 25% STEEM, 25% SBD and 50% STEEM Power.

But how much, in percentages, are you getting now in terms of STEEM / SBD?

Let's have a look at this, using this example from a post of mine, cashed out a few hours ago:


Screen Shot 2018-04-11 at 4.23.26 PM.png


So, knowing that we get 50% in STEEM Power, we already infer that 3.682 STEEM represents 50% of the entire payout.

But now we're having 0.387 STEEM and 5.649 SBD to account for the remaining 50%. Hmmm, how to calculate this?

Well, we first deduct the 0.387 STEEM from the 50% received in STEEM Power:

3.682 - 0.387 = 3.295 equivalent of STEEM.

So we now have 3.295 STEEM which is paid as 5.649 SBD.

In order to find out the price at which the conversion is made, we simply divide the SBD to the STEEM:

5.649 / 3.295 = 1.71

That 1.71 is actually USD and it came after we divided the number of SBD to STEEM, as stated in the whitepaper, where it says "1 SBD is equal 1 dollar worth of STEEM". So we got that STEEM at a $1.71 per STEEM, which is pretty much in sync with what we get if we look back on Coinmarketcap, for the day the article was published:


Screen Shot 2018-04-11 at 4.56.43 PM.png


So as you can see, this calculation is made under the assumption that 1 SBD is equal 1 dollar worth of STEEM, or, in other words, under the assumption that the peg is holding.

But how much you get in percentages?

Well, it's a simple third grade calculation based on the percentages we already know (i.e. STEEM Power represents 50%):

(0.387 * 50)/3.682 = 5.25%

The rest of 44.75% (until we reach the same 50% level) is paid in SBD as if 1 SBD would equal 1 dollar worth of STEEM.


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.


Dragos Roua


Wanna know when you're getting paid?

I know the feeling. That's why I created steem.supply, an easy to use and accurate tool for calculating your Steemit rewards

It's free to use, but if you think this is a useful addition, I'd appreciate your witness vote.

Thank you!

Psst: new to Steemit? Start Here

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Thanks for the breakdown. This illustrates why I favor witnesses with a non zero bias. Since the assumption throughout is that SBD is worth 1 and it is not, you want your witnesses to have bias so you get more of your payout in SBD.

you want your witnesses to have bias so you get more of your payout in SBD

You want your witnesses to have bias so you get an equal amount of SBD and STEEM, and so that the value of SBD is less than that of STEEM, at exactly 1 USD per SBD and a variable rate for STEEM.

Well yes, that's the real reason. But people will listen to a personal argument (my payout has more value) when an economic argument (it supports the peg) makes their eyes glaze over.

i would like to bring you witness to my w/(h) ea L/L (t/h) D https://steemit.com/g0fig/@xubrnt/ned-steemit

Oh I get it. So cool. I was wondering about that for a couple of weeks. Why Steem was much less than SBD. Lazy me for not reading all of the white paper but what price of steem thereshold forces reward payout to come into three parts: steem, SBD, and SP? When I first started steemit all I saw was SBD and SP payout and steem prices were around $1 USD. Now we get steem as part of the reward too which is cool but seems to be less considering SBD is pegged to the USD.

Thanks for the info.

Awesome explanation @dragosroua, but im here trying to break this down like calculus and trigonometry in one. However,do you have any idea how long this will remain like this? Is it dependent on the witness activities or demand in sbd?

It is dependent on a lot of factors, but primarily on the market. If the market will push SBD above the peg (i.e. if SBD will trade above $1) then we will have, most likely, a positive average bias. If the peg will be restored, we will see 25/25/50 pristine rewards.

As someone relatively new to this platform such a breakdown eases our understandings. Another thing that still confuses me is the curation rewards. Is every post always 75% author and 25% curators? because I find sometimes the curator gets 18% or 22%. What differs it?

Thank you, @dragosroua for the explanation, I've been wondering about the new way the reward is calculated, but have been too lazy to crunch the numbers :)

@dragosroua I really like Steem.supply. That's why you did hey my vote for you as a witness. It would be nice, if you can add an average pay-out per post/comment. Maybe even make a timeline of it. Just an idea, but even without it it is a great site!
Keep it going

The average payout per post / comment, and the average curation reward generated per post are in the tab "Content Insights". I think there are a lot of other interesting metrics if you click around :)

Thanks for the witness vote, appreciated!

I see it now. Thx for the reply!

still that's as compared to earlier good times for content creators

As a new member in the platform I didn't understood how the rewards were distributed at 100% and though that the SBD I was getting was incorrect , now I understand and can calculate the rate SBD/STEEM :)

@donaldlove @akacore @bearmaster come and read this post it will help you :)

Thanks, it may also help to have a look at this: http://steem.supply/rewards

Oooh, I didn't know that this was the way it took in the value of the dollar. I wonder if we'll ever see again the 25/25/50 rewards.

I think we will.

If it's 0%, then the rewards are split like this: 25% STEEM, 25% SBD and 50% STEEM Power.

This doesn't seem right to me, unless I'm misunderstanding something (which I could be!).

Under "normal" circumstances rewards should be 50% SBD and 50% SP, where 50% is of the USD value under the assumption that 1 SBD = 1 USD.

We are getting some of the SBD portion of the payout in STEEM now because the debt ratio (total value of SBD / market cap of STEEM) has gone over the 2% limit. If the debt ratio reaches 5% then no SBD will be paid out and post rewards will be 50% STEEM and 50% SP.

The price feed bias set by witnesses does cause more SBD to be printed, however the amount of liquid STEEM paid out for post rewards is determined only by the debt ratio.

Additionally, only one of the top 20 witnesses has a price feed bias > 0% so it's effectively still at 0% for the blockchain at the moment.

I don't have the white paper handy now, I'll try to look into it tomorrow, but, when I joined, the rewards were 25/25/50. I am 95% sure that this is the intended behavior, but, like I said, I need to confirm this with the white paper tomorrow.

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