Which is the Better Option for Post Rewards: 100% Power Up or 50%/50%?
I've just made an important discovery today! Now this may be old news for long time Steemians, but it has never occurred to me that this would make such a big difference to our post payouts. This is not something that we only encounter once after a long while; conversely, this is something we encounter every time we write a post!
So what am I talking about? It's the Rewards field found on the lower right corner whenever we open up the editor to writer a post!
It's not that I'm not aware of what each option meant. 100% Power Up means all payout will be in Steem Power. 50%/50% means half of the payout will be in Steem Dollar (SBD) and the other half in Steem Power. Yes, this is how it's always been explained to me.
But which is in fact better in terms of giving you a higher payout? Care to take a guess?
The answer is : the 50%/50% option! In fact, this will always be the more profitable option for as long as the value of SBD is greater than $1 USD (Currently, 1SBD = $3.95 USD).
In fact, it is more profitable by a wide margin! To get the lowdown on why this is so, I will refer you to this article: https://steemit.com/steemit/@isaria/minnow-university-post-rewards-the-difference-between-100-power-up-and-50-50. It will truly be worth your while, especially if you are posting regularly.
I'd like to believe I'm not the only newbie who is not aware of this, so I hope this post can benefit some newbies out there.
Till next time, cheers!
Special thanks to @isaria for a great job in explaining this topic.
Photo courtesy of Pixabay
Thanks! I've been wondering this myself too. I think it may be beneficial to do 100% power up if we're in those weird periods where STEEM is worth more than SBD in terms of USD (happened during the recent freefall of all the alt coins). It tends to recover pretty quickly though so I'm not even sure you could time it correctly.
You're welcome. I know...it does get confusing sometimes. :) Anyway, based on what I've read on the link I've provided, the important exchange rate to monitor is SBD to USD. As long as 1 SBD converts higher than 1 USD, we're better off using 50%/50%. This is because the internal Steemit system still pegs 1SBD to 1USD, so we'll be able to get more bang for our buck if we choose the 50/50 option.