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RE: [Steem] The Reward Pool and the Parable of the Token
Very good example, well broken down! This is how I thought it worked - its just 100%.
Very good example, well broken down! This is how I thought it worked - its just 100%.
Thanks!
I spent several months when I first dropped in to Steemit trying to find out from people how things actually work. While there are some really good pieces of advice about what kind of posts do well, how to engage with posts, how to work community – there is some pretty widespread misconception about how the reward pool works.
I've looked at the code of people who have worked through the actual server stuff – and no one really outside of Steemit themselves understand all of the mechanisms and variables going on under the hood. Which just encouraged me to try and understand it from a process point of view rather than from a numeric point of view.
Honestly, I'm not sure that I understand it even still. But some things are fairly apparent.
Does all of this in your post explain why for the 2 months I have been on here, my account is worth less then 40$. That includes the 9 STEEM I transfered from Binance as an experiment to see if having STEEM( I already own paid for with fiat not comments) being held here in SP would finally make my votes worth something or make my account somehow valuable. Thank god I did not transfer all of them! At this moment they are worth 3.22 each on Binance- which is kinda shitty but I still wish I never moved them here. At least I would have another 30$. I do not understand this. For all of my activity here in 2 months including 9 STEEM my wallet holds less then $40! Really... at this point I only still stay on steemit because its more interesting then other social media, the people are smart and blockchain tech is fascinating and this place has a wealth of info and opinions on the subject.... not to mention that my friends on FB and Instagram and Twitter are morons.
I feel kind of robbed for the 9 STEEM and that sucks to feel bitter towards steemit because of it.
I am trying to support steemit the best I can... (My original intention was to transfer ALL of my STEEM coins over here then power up)... as I struggle to understand it.
The craziest part is that the night I made my first transfer from Binance my steemit wallet was worth something like $80-$100... BEFORE I brought my STEEM here, the next few days STEEM even went up to 4.45 on Binance and my account there shot way up as my Steemit wallet kept dipping. What am I missing here? Please help.
BTW...
I found your profile and started following you because I saw what you said to that ghoul who ran the "show me your tits" contest and had much respect for you. I wanted to chime in with a comment as well but I did not want to be on the blockchain for eternity with him.
Your steem, whether powered up or not, whether on binance or steem or any other exchange, is worth the same, you have not lost it.
It only raises your upvote power when it is powered up in your wallet though.
I did power it up. I power up everything as soon as I get any credits in my wallet. I think I have like $3 in my wallet that I did not power up because I figured I would wait until I had more before I do. I have no intention of powering down... from what I understand I can't anyways. for like 2 years. Am I supposed to "Delegate" to people? would that be worth anything to anyone if I do? If so... does it matter if I do it to someone who is actually interesting to me but is not balling out of control? Or is that like the blind leading the blind? Btw... Thank you for taking the time to respond. Do you have any idea what happened to the $80 or so dollars I had earned in my wallet before bringing over my STEEM? Is the SP not included in the estimated value of a wallet?
Oh, one more point as regards delegation.
No, you're not supposed to delegate people. It's a thing you can do when you have a lot of SP and someone or something that you want to have more voting power desires it. In that case, you can temporarily loan your SP to someone else to increase their own power. You still own it and you still get the interest that accrues on it, but for all intents and purposes that involve affecting the blockchain, the person to whom you have delegated your SP gets the benefit.
Honestly, you're better off holding onto your SP until you have a significant voting power value and then just use your SP indirectly to up vote things you like. That's how you get more things you like.
So it is only a loan? That is pretty awesome and creative. Steemit is extrdanary!
Delegation is a loan that can be recalled at any time, for any reason, or never.
It is possible to transfer SP from one account to another so that ownership is fully completely subsumed, but the easiest way is probably to power down and then just transfer that STEEM wherever you want it.
I'm not sure that the idea of SP being a resource that can be loaned out is particularly awesome and creative; usury has been a part of human financial engagement for a thousand years in some parts of the world, and on Steemit it has led to the proliferation of bots which vote up less than quality content. Some of the side effects are less than desirable.
But it is a loan.
SP is included, but the SBD value is calculated at face value not market value (the $3 is valued at $3 not $12). But those same Steems (Steem and Steem Power are the same token) have not lost their value, they just moved from binance wallet to steem wallet.
The estimated value can be tricky, because it is based on a weighted average market price (you can see this price on steemnow.com, and if you click on the price in the upper right corner, it will show you a graph). The average market price of steem has fallen recently (but has risen over the medium term). When each steem was worth over 8 dollars, your account might have been estimated at $80 dollars or more. Now, those same steems are only worth $35. Did you lose money? No! You still have the same stake as before, but the valuation went down. It will go back up, and down, and up many times in the future as in the past.
You can power down your steem power and you will get 1/13th, (in your case about 0.85 steem) each week for 13 weeks, until all of your steem power is again in liquid (moveable) steem tokens.
Blessings!
Thank you so much. I really was not on here to get rich. I just wanted to understand the way everything works. I view the wallet part as like getting gold stars from a teacher for a good paper. One last question if you don't mind? Do you think it would be beneficial to move the rest of my STEEM over and power up? Sorry if I ask dumb questions.
Nevermind to my last question. I got my answer. Thanks again