RE: Saving your Coins in Steemit, Things you should know
As you may know at this point, STEEM POWER isn't transferable! (You can Power UP other Steemit's Accounts yet utilizing your fluid STEEM) This implies just to get back your STEEM that you changed over into STEEM POWER, when you settle on the choice to Power Down which will take up to 2 years.
This needs to be shouted from the roof-tops of Steemit.com. As beneficial as STEEM POWER is (to be a more influential curator on the STEEM Blockchain and by extension Steemit.com), if you convert all your STEEM to STEEM POWER, you no longer possess actual STEEM tokens anymore. Your STEEM tokens become an 'investment' reflected by it's STEEM token value. It would be more honest to call STEEM POWER 'vests' or 'Steem Blockchain Investment'. Vests can be transferred back into STEEM, but as you said, it can take up to TWO YEARS. (!)
It was smart of the developers to reflect the user's 'vests' as STEEM POWER, to imply that you are earning actual crypto money when you 100% power up, but you are not. You are earning a greater 'investment' into the blockchain. Which is not a bad thing!
Excellent post, this is something that is not discussed and I think is misunderstood by new users. It took me a few months to finally learn what "SP" or STEEM POWER really is. I assumed, like most people, that they were actual tradeable STEEM tokens.
Gain Interest on Savings
SBD pays clients who hold it interest. This loan fee guarantees that SBD can be securely held with negligible open door cost. The genuine financing cost can be changed by agreement of the dynamic excavators. This gives STEEM the adaptability to modify the loan fee to be suitable for economic situations.
Where does Interest originate from?
Steem makes new SBD to pay enthusiasm on existing SBD. This builds the obligation to-value proportion of STEEM. STEEM makes money related impetuses for 90% of all virtual STEEM to vest for no less than a year. The virtual STEEM supply is the measure of STEEM that would exist if all SBD were changed over to STEEM at the present bolster cost. The effect of making new SBD to pay intrigue is to build the virtual STEEM supply and lessen the percent of vesting STEEM. As the percent of vesting STEEM falls the rate of return paid to vesting STEEM naturally increments to pull in new long haul capital.
In the event that we disregard the bookkeeping subtle elements, the financial effect of paying SBD intrigue is to exchange an incentive from holders of non-vesting STEEM to SBD holders. This esteem exchange benefits the two gatherings since holders of SBD are successfully stretching out credit to Steem. This credit gives STEEM holders use that expands their benefits when STEEM rises and builds misfortunes when it falls.
Decentralized Price Feed
A value sustain is created by 21 dynamic mineworkers. Once every hour the middle distributed bolster is logged. The middle of all sustains logged over the previous week is utilized to decide the rate at which SBD believers to STEEM. With this procedure it takes 51% of dynamic mineworkers plotting for 3 and a half days to definitively degenerate the bolster. It is sheltered to state that STEEM holders with a personal stake later on estimation of STEEM will be professional dynamic in voting in favor of dependable excavators to deliver nourishes.