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RE: Is the Current REWARDS DISTRIBUTION Calculation OUTDATED?
Hi, I am new in Steemit so I may get this all wrong. Isn't it if we want to cash out or pay for any transaction using Steem we have to convert Steem or Steem Power to SBD first? If so, converting Steem to SBD will be computed based on the exchange rate of Steem which is 2.11. The SBD value therefore of the 17.77 Steem Power in your example above will still be SBD 37.50. The perceived loss in value is recovered at conversion. Just thinking out loud.
you get shorthanded during the initial pay out. The 37.5 SBD should have been converted into 207 Steem Power (37.5 x 11.7 / 2.11) instead of 17.7. If you try to convert your 17.77 Steem Power into SBD that would be 3.20 (17.7 x 2.11 / 11.7).
my friend @birjudanak explained
in blockchain:
1 SBD = 1 USD
1 STEEM = 3 USD
and the payout amount seen on your post is in USD
Hi, I'm back after trying to figure this out all this time. I see your point now. Now for your question, Where does the difference of 35 SBD go, can we assume that this is how Steem owners make their money? I mean, this is still a privately owned business and the owners must still make something. Would appreciate your thoughts on this. Thanks.
No. There is no hidden taking of steem. It is all based on calculations. The author of this post had it all wrong.
100 USD post... 75% = 75 USD
50/50 is 35 SBD and 12 Steem
(Steem is valued at $3 USD on the market now. So you get 1/$3 or 1/3 the Steem than the SBD..... 1 SBD IS CALCULATED AS 1 USD.)
Now lets look again....
$100 USD post gets 35 sbd valued at $350 USD plus 12x3=36 USD from the 12 Steem...
Gives you a payout of $386 USD for a post that is supposed to only be worth $100.
We are actually making about 3.5 to 4 Times MORE than we are supposed to be.
We are not getting jipped.... We are making an un earned WINDFALL.
Hi em3. I am less than a month old here in Steemit so please excuse my inquisitiveness. It appears that a lot of members still don't really understand the rewards system judging from the response this post has generated. Some of those who agreed have reps of over 50 which makes them to my opinion experienced and knowledgeable about Steemit by now.
I definitely agree with you that we are getting a windfall from this platform. However, what the author of this post is trying to say, as I understand it, is the initial payout of the rewards is where the shortchange occur. Please read @sandalphon response to my reply in this post. His argument is that the other 50% we receive in rewards in the form of steem power should be in the amount at which if computed back to SBD would give you 37.50 and not 3.20. If you add up the two the total reward amounts to 40.70 sbd and not 75sbd. That is why he thinks the rewards system needs an update to factor in the effects of a huge disparity in value between SBD amd Steem Power.
I would appreciate it very much if you can give me your opinion on this. I have a post as a follow up to this in my blog https://steemit.com/steem/@gems.and.cookies/how-steem-and-sbd-prices-affect-your-rewards. Your comment on this will also be highly regarded. This will go a long way to my continuing education of this great platform.
Thanks and Happy New Year!