Is the Current REWARDS DISTRIBUTION Calculation OUTDATED?
Summary: When both Steem and SBD were valued at $1 per coin, the current rewards calculation made sense. But now that SBD is hovering between $11 and $13 per coin while Steem lags at $2 to $2.50, I think the current rewards calculation needs to be revisited and revised.
Following is the current rewards distribution process, based on my recent rewards redemption:
Every 7 days after posting, Steem rewards are distributed to both the author and the curators. The author is supposed to get 75% of the total rewards value and by default, this amount is split into SBD (50%) and Steem Power (50%). SBD is then converted into Steem Power by dividing the amount by the "average market value" of Steem.
By way of example, assuming your post earned $100 SBD and assuming you selected the default 50% 50% distribution, you would get around 40 SBD or 40% (instead of 75%) as follows:
To clearly see the missing puzzle, allow me to recalculate by converting into Steem and USD:
In other words, the total value of your authorship rewards should be 75 SBD (equivalent to 415 Steem Power or 877.50 USD). Compare this to what we currently get which is 40 SBD [37.50 + (17.77 / 5.54)].
THE question then is, where does the difference of 35 SBD (75 - 40 or around 421 USD) go?
It would be great is Steemit Management look into this since the issue magnifies as the value of SBD increases exponentially while Steem's value lags behind.
If I missed something, I would be glad to know.
I believe you are looking at it and calculating it all wrong.
Potential Post payout is shown in USD (with the expectation that 1 SBD is worth 1 USD).
100 USD post... 75% = 75 USD
50/50 is 37.5 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 37.5 sbd valued at $375 USD plus 12x3=36 USD from the 12 Steem...
Gives you a payout of $411 USD for a post that is supposed to only be worth $100.
We are actually making about 4 to 5 Times MORE than we are supposed to be.
We are not getting jipped.... We are making an un-earned/unintentional WINDFALL.
Nice calculation expressed with real figures to demonstrate. As a newbie, I still find all the thing quite difficult to understand and know in detail all the best practices that should be followed. There should be a practical guide somewhere with the information of how to get and buy stemm, steem dollar and than how to convert them back into real money or other cryptos.
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I also noticed that. Always there is something missing during pay out.
Thanks @gheghenrv for sharing your thoughts. I noticed it just few days ago. I thought it was just a miscalculation from my end so I waited for another pay out and took a screen shot. That's how I confirmed the calculation.
Thanks for bringing out of this topic, hopefully steemit can see this because we need to know what is happening, right?
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!
This post has received a 3.54 % upvote from @upmyvote thanks to: @sandalphon. Send at least 1 SBD to @upmyvote with a post link in the memo field to promote a post! Sorry, we can't upvote comments.
I agree with you. So it will be more correct
I see what you mean. Might be time.