Don't Do "100% Power Up" For Post Rewards When SBD Is Over $1!
Hey, all. It's @shayne
I'm going to briefly explain in layman's terms -- because I'm not technical myself -- why you SHOULD NOT be devoting 100% of your rewards to Steem Power EVEN IF YOU WANT TO POWER UP ALL OF YOUR REWARDS.
The Reason
It has to do with distribution.
When you set your rewards at 100% SP, and your post is worth $50, you will get $50 worth of Steem Power.
However, Steem Dollars (SBD) are NOT paid out at market rates, and rather are paid out as though they are valued at their theoretical peg of $1 USD.
This means that if you have a post worth $50, and you have a 50/50 split, you will be paid $25 in Steem Power and 25 SBD no matter what the market price is currently.
And right now the market price of SBD is worth about $2.
So if you accept 100% SP rewards for a $50 post, you get $50 in SP. But if it's set at 50/50, you will get $25 in SP and $50 SBD.
So EVEN IF you want to invest all of your rewards into Steem Power, you should STILL DO A 50/50 SPLIT, because you can trade that $50 in SBD for Steem on the market and then power that up.
Does that make sense?
If not, feel free to ask questions and I'll do as much as I can to help.
Personally, I am still trading my 50% of SBD for other cryptos or cashing it out because I like to use Steemit as a part-time job, meaning I actually have to use a lot of this stuff.
Appreciate the Pro Tip Shayne! :) Keep Steemin'!
Thanks, man! Have $0.13 lol
And now you have my " 2 cents" :)
i throw in another one...
if we keep doing it, we'll make to a bottle beer
i bring the straws ^^
You may be on to something here. lol :) Did we just break the Matrix ? lol
not sure lets check ^^
source pinterest
however gonna follow you ;-)
I think I feel it! It's happening! :)
hahahah look at it, if we keep doing this for two days straight we will have BOTH our own bottle beer :-) how awesome ^^
what an amazing strategy to make sure we'll never run out of beer EVER.
i will spread the love... beer .. oh nonono never spread the beer
beer for everyone
Hello @shayne,
I'm curious about this as well -
Steem has been increasing in value compared to Steem Backed Dollars over the last week or so.
As i write this:
1SD = 0.82 Steem
So if we trade out our SBD and buy Steem right now...won't we be losing a bit in these transactions?
I'm very far from being an expert on currencies.
What are your thoughts?
The issue is the price of SBD. The price of Steem doesn't matter. If a post is worth $50 in SP, then it will be paid out $50 in Steem. However, SBD is pegged at $1 when rewards are paid out -- it doesn't matter at what price the market is selling it. So your SBD will be worth MORE, while your SP will be worth whatever the market is trading it at.
Thanks that makes sense to opt for payouts in SBD then.
I have a follow up question for you then. I've noticed that the 50% SBD/ 50%SP payout option has not been equal lately.
For example:
Even after curation is paid out i should expect a 50/50 of SBD/SP...
But that hasn't been the case of late.
I know you're not an expert either, but any idea why we seem to be receiving about 50% SBD and maybe 25% SP?
Maybe this is an inflation thing?
Anyways, have a look at your own author rewards in your wallet.
I do not know about this. Perhaps it has something to do with vests or curation rewards.
lol I really don't know.
Converting it to steem u do lose significant amount at the moment tho as just bought steem with 3 SBD's and only got back less than 1.3 steem. This was a conversion which took the 3 and a half days and not a straight market buy so as a newbie at this dont know if it makes much of a difference.
Great post @shayne, to the point!
Thanks a lot!
Thanks @shayne, I saw this come up somewhere else yesterday and your explanation makes it more clear.
Ugh, BlindSquirl understand now.
No take $0.26 payout in 100% SP.
That makes a lot of sense, changed my posts to 50/50 yesterday
That's the smart thing to do.
makes a lot of sense. Thanx for pointing out the SBD value as well.
wear is the option to set the 50/50 and how do you set it
When you are writing a post there is a little box on the right under the posting field.
It has three options
Hope that helps.
It's at the lower right on the posting page. Click on it to see the options.
That. Is. INSANE.
I'm glad I didn't switch to 100% Powered Up posts like I'd thought about doing LOL
Me too. Im on 50/50
thanks for the tip....