Rewards Pool Update: Leveled off at 700,000 and now stable
Background
29 days ago, I wrote a post about the state of the rewards pool and why post rewards were dropping. Today I'm writing an update to explain our current conditions.
Rewards Pool has Stabilized
The rewards pool normally does not impact actual awards payouts but over the last month when it was falling it was still concerning because if the rewards pool completely drains, there not be rewards payouts. The below chart shows that the rewards pool was rapidly decreasing through the first half of July and leveled off through the end of July and has stabilized over the past week. The rewards pool has been floating around 700,000 STEEM for the last 2 weeks now. I will continue tracking the rewards pool in my daily investor report but at this point I think we can throw out the fear that the rewards pool was going to completely drain.
The red line on the graph is my original regression analysis of the rewards pool. I'm glad to see that the rewards pool has stabilized well above where the regression showed it would (700,000 verse about 550,000).
Recent_Claims has also Stabilized
Recent_Claims is the actual driver of the rewards you receive for your posts or comments. It is governed by this formula:
reward_per_rshare = reward_balance / recent_claims
The chart I showed above shows that the value of recent_claims was raising throughout July but has stabilized. Therefore, rewards were in general falling in July but have now stabilized. Recent-claims is calculated from the sum of votes on the blockchain over a 30 day look back period. This means that increased voting activity on the blockchain diminishes rewards per vote in order to fairly distribute the rewards produced by the blockchain every day. The stabilized Recent_Claims value for the past week means that you can now expect consistent rewards from the votes you are receiving.
Bottom Line: The rewards pools is not going to run out and you are looking at steady rewards going forward. Steem on!
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You can reach me on Discord on my private server or through private message to LeongKhan
Thank you, this info is very valuable. I think the novelty of upvoting under the new linear voting algo is wearing off and whales are getting back to other things. It is a lot of time/commitment to bleed off 20% of your SP every day via curation.
Also interesting is the continued uptrend of unique visits - more eyeballs, more content but stabilizing payouts. Would seem to indicate that average payout/post is dropping over time.
I'm also watching the market price of STEEM, which is under constant sell pressure. I think this means that people are cashing out to fiat, more sellers than buyers. Will be interesting to see if demand for STEEM increases this fall when people are back from summer.
Very thoroughly and simply explained. I've wondered how exactly this is calculated and how rewards will be affected when we have 1 million users or more. Really simple and straight forward formula. Great post! Thank you!
If we had 1 million users or more the rewards payout would be much lower in STEEM but most likely similar in dollar value of payouts because a higher user base will drive investment in the blockchain. It's a great reason to invest now if you think we will have 1 million users in the future.
I'm trying! I have no money to give on curation since my upvote is worth only one penny. But this week I started Tweeting and Pinning the cool posts I upvoted with interesting content in my niches. I hope the people I am connected to on Twitter and Pinterest will come visit those posts and maybe want to try steemit for themselves. I hope this helps. I got one guy out my coaching so I feel optimistic.
I'm glad the rewards are not running out. Thank you for doing this for the rest of us.
I am a content producer and I came here for the Alexa ranking and to get my message out. Steemit has so many pluses on the content side so I'm doing what I can to get more people who don't really care about he crypto but do care about the blogging platform.
Much needed important information here. Thanks for keeping an eye on the reward pool.
Interesting to think of recent_claims as a kind of block difficulty, leading to a kind of voting equilibrium. It's good that people are voting more, i'm sure the HF creating a linear voting power has had something to do with it. Also bots on steem are only getting stronger (eating away at the reward pool?)
Does the current steem price enter into this equation? I'm assuming it does because of the SBD peg. Like would the reward pool get larger if there was a large price swing up?
Bot voting may be slightly increasing the Recent_Claims value by maximizing the use of vesting shares but the mechanics of voting power keep it from being abusive.
I'm struggling to answer your question about how the STEEM price influences the rewards pool. I'll see if I can find the answer and do a post later. That will go on the todo list.
Thank you!
Nice information on reward pool
It's good to see the reward pool finally leveling off.
meep
Interesting and usefull info. Thanks.
Makes feel better knowing that rewards will finally stabilise.
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STOPI need to learn something new...
Otherwise I think I vote 10, max 15 per day ( if I even get here).
I guess some other people vote like crazy.
But, does it even make sense?
Try to use your 20% of your voting power each day to maximize your curation rewards. There are different methods based on time available and programming knowledge, but it depends how far you want to do down the rabbit hole.