Understanding Author Rewards Calculations

in steemit •  10 months ago

Would you like to know how the author rewards in USD are calculated and what the real value you receive is because many users are confused by that?

rewards.jpg

When you see the amount in USD like in the post above, which shows $51.26, this is not the exact amount you are receiving and in fact, the good news is that you receive much more than that.

Understanding Author Rewards Calculations

In this post I am going to explain how the author rewards calculations work so you can estimate the amount you will get if payment is still pending or know exactly the value of what you got if the rewards have been paid.

I am going to use three of my posts to show you how it works.

1) My Sunday Fruit Smoothie!

This is the first post.

post01.jpg

The payment on this post has been made and these are the numbers.

Past Payouts $51.26

  • Author $44.25
    (22.13 SBD, 5.19 SP)
  • Curators $7.01

$51.26 is the total amount with 70% going to the author and 30% going to curators.

So, as the author of the post, it says that I received $44.25, but this is not exact.

What I received is 22.13 SBD and 5.19 SP.

This is the breakdown on how you get that $44.25 number:

22.13 SBD x 1 USD = $22.13
5.19 SP x 4.26 USD = $22.10
($4.26 being the value of STEEM at the moment payment was made)

Total = $44.23

50% of the rewards are paid in SBD and 50% in SP by default.

Now, it's not the exact amount you get in USD because Steemit, in their calculation uses 1 SBD = 1 USD. One SBD is supposed to always stay at $1, but we are very lucky because the SBD value has increased significantly.

Let's look at it.

1 SBD = $5.08 today.

So this is the real income I received for the post.

22.13 SBD x 5.08 USD = $112.42
5.19 SP x 4.26 USD = $22.10 (same as before)

Total = $134.52

As you can see the real value is 3 times greater.

Isn't that awesome?

2) My 10 Favorite Supernatural Stories

This is the second post.

post02.jpg

The payment on this post has been made and these are the numbers.

Past Payouts $63.77

  • Author $50.63
    (25.32 SBD, 5.94 SP)
  • Curators $13.14

$63.77 is the total amount with 70% going to the author and 30% going to curators.

So, as I am the author of the post, it says that I received $50.63, but this is not exact.

What I received is 25.32 SBD and 5.94 SP.

This is the breakdown on how you get that $50.63 number:

25.32 SBD x 1 USD = $25.32
5.94 SP x 4.26 USD = $25.30
($4.26 being the value of STEEM at the moment payment was made)

Total = $50.62

50% of the rewards are paid in SBD and 50% in SP by default.

As explained for the first post, Steemit uses 1 SBD = 1 USD, but 1 SBD = $5.08 today.

So this is the real income I received for this second post.

25.32 SBD x 5.08 USD = $128.62
5.94 SP x 4.26 USD = $25.30 (same as before)

Total = $153.92

This is again 3 times more that the number shown on the post.

3) I Don't know If I Should Laugh or Cry!

Now, this is my last post and payout will happen in 6 days.

pending.jpg

This is what it shows:

Pending Payout $48.17

(24.09 SBD, 5.68 SP)

This is for the author and curators so if you want to estimate your earning roughly you can do 48.17 x 70% = $33.71

I now can do 33.71 x 3 = $101

My estimated payout in USD will be $101.

You can calculate it more precisely if you take 70% of 24.09 SBD and 70% of 5.68 SP.

Now, the value of STEEM will not be the same in 6 days and the Pending Payout $48.17 will fluctuate depending on that, and also the additional upvotes that will come in during these 6 days left.

The real income you will get in USD will depend on the value of STEEM and SBD in 6 days.

Let's say that there is no additional upvotes on this post and the values are:

STEEM = $3
SBD = $10

The payout you will receive is:

24.09 SBD x 10 USD = $240.90
5.68 SP x 3 USD = $17.04

Grand Total = $257.94

But wait, this is the grand total and as the author you will get only 70% of this.

257.94 x 70% = $180.55

The real amount you will receive then is $180.55.

I hope that you enjoyed reading this post and that it successfully explained how the author rewards calculations work.

Would you upvote this post and follow me for more because this will encourage me to write more posts about Steemit like this one_?_

Would you please help @jerrybanfield become a top 20 witness because you can help funding projects to build Steem as explained here? Vote for jerrybanfield as a witness or set jerrybanfield as a proxy to handle all witness votes at https://steemit.com/~witnesses. Read the 5 reasons why I'm voting for Jerry Banfield as a witness and how to vote in my post.

Michel Gerard

www.michelgerardonline.com

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thanks, all of this finally made sense. Thanks for explaining it in my level

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I am glad that I have successfuly explained it to you in this post.

I guess, the price f both coins (Steem and SBD) will go higher as there is a real community support these coins.

By the way, I love your simple method in explaining Gmichelbkk :D

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I think it's going to gain in value more this year especially for STEEM. I'm glad you like the post.

What a way to explain, yes now I can calculate the value of my payouts. I also have one doubt how and when should we do bod bot and are they trusted, if you can upload a post on it. It will be too helpful to many small minnows.
We will appreciate your talent and get enlightened by your thoughts.

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Thank you @muzi0202 for your comment. I think you should start using voting bots as soon as you can. You can spend 1 SBD on them and increase the budget after.
I have a post about the profitability of bots:
https://steemit.com/steemit/@gmichelbkk/is-it-still-profitable-to-bid-for-steem-upvote-bots
Bots are not always profitable, even if they have always been for me, but they give more exposure to your posts and your blog, gives more rewards to people who vote for you, and it shows that you are serious with Steem. I may do another post on them to explain in detail.
Go here to see all bots: https://steembottracker.com/ and select one that is 3.5 days or less.

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Thank you so much.

You got a 1.50% upvote from @postpromoter courtesy of @gmichelbkk!

Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!

Good one bro.. I have been cleared now.. Thanks @gmichelbkk

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I am glad it is useful for you.

Thanks so much for this explanation. I've been curious about why my SP is so damn lower than the SBD most of the time, when it's supposed to be 50-50. well this pretty much explains it.

Also, i just submitted my entry into the SWC. i know i'm supposed to wait, but i'm pretty new here and my post is probably going to make $0.00, and i don't want it to go missing among the pile. i'll really love it if you can check it out here. Once again thanks so much, for this article and for your understanding.

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I'm glad this post is useful @isaacbanks and I put your story in the list.

Thanks @gmichelbkk, great post. I'm a little confused on the math on the last example, the 33.71 x 3, other than that very helpful thanks again

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Thank you @tylerjmusicc. With the two paid out posts, we determined that the real amount you get is the author rewards that are shown times 3. 33.71 is the 70% in author rewards down from the total $48.17. You multiply 33.71 x 3 to estimate your real rewards. This is assuming the STEEM and SBD value stays at around what they are today.

it is realy realy good information now i the concept is cleared.ThanKs!

This post has received a 6.68 % upvote from @boomerang thanks to: @gmichelbkk

You got a 1.84% upvote from @buildawhale courtesy of @gmichelbkk!
If you believe this post is spam or abuse, please report it to our Discord #abuse channel.

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In one moment in my life I have realized that there are two types of people. One are working only for their own good (no matter what are the consequences for others) and the other are working primarily for the benefit of the community. I'm new here but I recognize Jerry and you as a people of good heart and of good intentions, working for the benefit of the community. So please do not be discouraged. I gave my voice for Jerry as witness and voted on your post. Following both. Have a nice day :)

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Thank you @andrijana for your good words, the witness vote and the follows.

Thanks for sharing ..
It was really helpful

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My pleasure.

Wow i was just about to search this ...Thanks for sharing

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Thank you @syedihsanshah. I'm glad it's useful for you.

Thanks. Now if I can earn more than a penny. LOL

Great informative post Michel! Thanks again for your contribution to the community, amazing as always! Keep it up!

P.S. I was first! :P

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Thank you @ferow for your comment and being first.

Thank you gmichelbkk for making a transfer to me for an upvote of 6.63% on this post!

Half of your bid goes to @budgets which funds growth projects for Steem like our top 25 posts on Steem!

The other half helps holders of Steem power earn about 60% APR on a delegation to me!

For help, will you please visit https://jerrybanfield.com/contact/ because I check my discord server daily?

To learn more about Steem, will you please use http://steem.guide/ because this URL forwards to my most recently updated complete Steem tutorial?

Doubt clearing post for many steemers☺️

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I'm glad it helps @steemerxo.

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Vote begging is not how this works on Steemit, even for fans.

I'm really thankful to you for this post. You have explained very well and cleared all my confusions. Thanks again.

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I am glad that I helped you undestand this.

You explained it very clearly with examples. Anyone can understand that. Thanks @gmichelbkk for sharing this!

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I am glad that you like it.

Good explanation..👍 resteeming it.....

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Thank you for the resteem @steemflow.

the amount will be more in Rupiah (Indonesia) .. extraordinary @gmichelbkk

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I am glad that you like it @cutyusra.

thanks for your very helpful post now concept is clear how this calcuation is made.

upvoted and re-steemed(so other people also get is helpful information)

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Thank you for your feedback @imran-aslam, I am glad my post helped you understand. Thanks for the upvote and resteem.

better way of making newbees understand it very well, alot of us don't understand it. This post really expalians everything. i admit at first i was quite confused why my 10 SBD became 4. something up until my mentor explained it to me.. thanks for this very useful post hope this shed light to new ones.

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I am glad that you like the post @roxyladugal066.

This is very informative and gives me a glimpse of hiw to calculate my payout... I was just wondering if it will always be 70% to the author and 30% to curator or does it depend on the market price of Steem and SBD?

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The 70% - 30% ratio is something built in Steem and this will change, I believe, only if top witnesses push for a change. I does not depend on the value of STEEM or SBD.

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Yes I like the way you explain things oh so simple.

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Thank you very much@rudnicki.

Coins mentioned in post:

CoinPrice (USD)📉 24h📉 7d
SBDSteem Dollars4.619$-6.73%-16.81%
STEEMSteem3.803$-4.55%-14.71%
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Thank you for this useful comment.

Informative Post, it cleared all my doubts!
One Question:-
Yesterday, the value of my post was $53.00 i.e (12.01 SBD, 9.63 STEEM, 17.62 SP)
Today, the value of same post is $48.01 i.e (7.84 SBD, 11.90 STEEM, 17.68 SP)
The value of post changed due to fluctuation in the price of STEEM and SBD, right?
Why the amount of STEEM and SBD changed?

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Thank you @chavacrypto for the comment. The rewards are changing due to the value of STEEM and SBD with a delay. Seems like the SP is consistent and that the adjustment is only made on liquid STEEM and SBD, which is 50% of the rewards. I believe there is also a factor of less tokens being distributed when the price is lower and some upvotes that were at 0.01 might have gone to zero. I don't know exactly how it is calculated.