Do not use the 100% Power Up Post!

As a steemit newbie, It has been a bit overwhelming the last few months, and I'm finally getting a handle on the somewhat complicated payout structure. First I'm going to give you the 30 second version, alright?

Your boss pulls you aside one day and says, I was just talking to payroll, and I would like to pay you partially in gift cards. You see, corporate printed up a ton of them last year with the message "Merry Christmas/Kwanza/Hanukkah or whatever day!" We had some feedback that this was a bit insensitive. However they were all pre-loaded in value, and it is going to be a real hassle to extract all the value from them.

How about I give you 50% of your paycheck in these gift cards, but I will give you $2.50 in gift card dollars in exchange for every dollar I would have otherwise paid you? They will be easy to use at "Stuff-Mart", and you can buy visa gift cards with them, so you can use them for anything, whaddya say?

I personally would say SURE THING YES SIR SIGN ME UP! This is basically what is happening when you do a 50/50 reward post, rather than a 100% power up post. Now this is going to get technical, so skip the rest and just stick to 50/50 posts from now on.

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Still with me? OK, If you author a 50/50 post that makes exactly $100, it is not 100 U.S. dollars as you might think. It is 100 STEEM TOKEN UNITS, or STU. The Author gets 75%, and the Curators get 25%. So you get 75 STU after 7 days. Half of your cut (37.5) is paid in SBD STEEM DOLLARS. The other half is paid in STEEM (which goes directly to your "Power-Up" bucket once you redeem your pending rewards in your wallet)

Here is the important thing, the 37.5 STU that is paid to you in SBD means you get 37.5 SBD, NO MATTER HOW MUCH SBD IS WORTH. If SBD is around $2.50 in U.S. Dollars, as it is now, this is worth $93.75 U.S. Dollars! Yes, 1 STU = 1 SBD. However, the 37.5 STU that is paid out in STEEM is divided by the market cost of STEEM, as if each STU was one U.S. Dollar. So right now that would equal 15 STEEM.

To sum up, half of your 75 STU due to you for your amazing, creative post is paid as 37.5 SBD (equal to $93.75 USD), and the other half is paid out as 15 STEEM (equal to $37.50 U.S. Dollars). So in U.S. dollars your reward is $131.25.

If you had chosen the 100% power-up option, your 75 STU would be converted to 30 STEEM, (equal to $75 U.S. Dollars).

You would get 43% more money by doing a 50/50 post.

The only time you should ever do a 100% Power Up Post would be if the value of a SBD STEEM DOLLAR fell below 1 U.S. Dollar. That is tough to see happening soon, as the crypto market is quite depressed, and and SBD is worth over $2.50 USD. Happy Steeming!

Here is a link for more information, with sliders to calculate rewards! http://steem.supply/rewards

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