At what rate and why are Author rewards losing in value? A test.
Hey guys, hey girls!
Have you ever wondered at what rate the Author rewards are falling? Losing value through time period of 7 days is painful. On average my posts make around $0.05 and on this scale I have not seriously considered how much of the reward is lost and why it happens. But...
Recently, exactly 7 days ago, I have had some extreme luck and my post (credit goes to introduceyourself tag) on content introduction made $27.42 in the first day after uploading. Thank you @steem-buzz @skan @inuk @sunscape @juliank @joele and many others for generous contributions! I was obviously over the moon and began stalking the post, reloading the screen every seven seconds. :D
Then, after some time, I noticed somebody started taking my money away. What begun was the painful period of dissapearing rewards.
Apart from the first day action, my post received 3 comments and upvotes later (worth $0.00-$0.01 each). Tonight, as I received the reward in SP and SBD it was worth $15.05 or a little les than 55% of its original value.
In comparison, around same time period I uploaded a comment in an environmental themed post, which caught attention of some very SPowered people and received $32.42. Wow. I was simply amazed, thank you @blocktrades for a very heavy upvote! Later, after the first hour action, post (a comment) received no attention and the final value I collected today was $17.10 or 52,7% of original value. Did I lose more value due to more activity from the first example?
I am happy and very encouraged by the amazing rewards I received but I still wonder why are Author rewards losing so much value? Any of you guys have an idea?
Is it the fact that people upvote for other posts after and spread the money? Is it the falling value of steem currency?
Do you guys think activity (comments through 7 day period) contributes to the final reward?
I will use this post as a test. I will monitor the Author rewards value 2x per day, morning and evening. I will also monitor the comments to see if there is a connection between the rate of reward drop and the rate of activity.
The goal is to draw a graph, representing the value drop in Author rewards over given time period. Secondary objective is to determine the value loss rate of Author rewards per hour and per day. Tertiary objective is determing whether value is lost faster during the last days of 7 days period. The graph will be presented after one week, when Author rewards are collected and the results are known. I will also compare the graph to the steem value chart for the upcoming 7 days.
If you like the idea please contribute by commenting through given period of 7 days. Resteeming would be greatly appreciated as it would spread the word and attract more people to the mini research, therefore making it more accurate.
Thank you guys. Let me know if you have any info or links to similar researches.
Best of luck!
Image source:
http://blogchaincafe.com/la-blockchain-steem-12
Over the seven day period while you watched your post value decline, the price of Steem and SBD declined, and this probably is the reason for almost all of the decline.
While the VP of those that voted your posts probably also varied over that time period, and this may affect your rewards, I suspect this is a small part of the decline in value.
The price of Steem declined probably almost exactly as much as your rewards. You should graph the price of Steem during the period you watch rewards fluctuate.
Exactly....now that we are at about $1 price of Steem....we may actually see an increase in reward value as the week goes on.
That sounds nice.!:)) I will still go on with the mini research and definitely include steem price comparisons for both weeks.
I've also heard people speak about a reward pool. If it is constantly being reduced as well that might have something to do with the falling rewards.
Rewards are calculated to drain the pool of newly created Steem each day, lagging 7 days. Just after HF19 there was an accumulation of Steem beyond that, due to whales participating in an experiment and not voting. We have drained that excess, and Steem being produced each day is being consumed each day, if I understand correctly (I could well be wrong, as these are but recollections of passing mentions, rather than study).
This smaller rewards pool, consisting only of what Steem is mined each day, also contributes to lower rewards, but the impact is nowhere near as great as the decline in the price of Steem.
Thank you! I will look into current week steem price chart to compare.
Hello shimelin, thanks for using my service.
I am not at home right now to spin the wheel, but my voting power is regenerated enough to give you 100% just for you being amazing! :)
Is the wheel working otherwise? I like the idea..
Oh yes it is working, but as I am doing everything manually there will be times when I will not be at home thus you could wait for the spin or I could just give you 100% upvote as compensation. :)
I think 100% upvote is winning though.
Thank you!:) Much appreciated. Enjoy and best of luck!
In the last 7 days steem has lost almost half its value....
Sadly:. This might bethe reason then. Otherwise rewards are not lowering? Then it is possible for rewards to rise if also steem rises?..:)
I have never seen a reward rise with the price of Steem. Which is my main problem with the rewards working in the manner that they do. I guess we will see if the price of Steem makes a study increase.
Yes. I am also curious as I have never seen the price increase myself..
Exactly, the price of steem is constantly changing and so why the rewards constantly change.
Curator also takes parts of the total amount. But that is just fine. Do not forget to power up your steem and steem dollars. Selling it for usd is not the way to go yet. Lock it up in steem power. 3 month hold so you wont sell. :)
I will not forget to power up:). I took the reward value a a whole, so both rewards together are included in the test.
How do you explane that mathematical
6 votes 0.00 usd
Hmmm, I do not know exactly. Probably voting power of 6 users was really small.
Interesting study @shimelin. Look forward to your results!
Thank you!
Yeah the crypto market isn't doing that great. Plus, I don't think the value of the post rewards takes into account the value of the curation rewards. Some of that money that shows on the post goes to people who upvoted your post.
Yes. I have accounted this in the total sum (before the spliting up for author and curators).
Great reading. Ty
Thank you!
I'm not an expert but alt coins this week have dropped and btc to, Maybe this was the main cause? Thanks Jake x
Yes, I am looking into the connection. It is probably the real cause as suggested in the comments above. Thank you for commenting.:) Enjoy!
Yeah interesting post.