Reward Pool Explanation

in steemit •  last year

As discussions about flagging and rewards carry on it is obvious that some are still struggling to understand how the reward system works.

Simple Explanation of how the reward system works:

  • Each day the Steem Blockchain creates new Steem 
  • That Steem is distributed via our votes
  • The more stake you hold the more your votes are worth
  • When you post (or comment) the community has 3 options
    • upvote
    • downvote/flag
    • no action
  • A post is active for 7 days
  • When that week is over you get to claim whatever the balance is.


It is a stake based system, so what you choose to hold in Steem Power matters.  

@whatsup



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I bought Steem and converted it to SP a few days after I joined....enough to give me $.02 worth of SP. So when I upvote I am not only giving a positive response to the blog or comment, but also literally and really giving the author my 2 cents worth. Makes me feel like I am doing something more to help the community.

There is a couple things people need to know about down votes. Yes you can down vote for what ever reason you want...see Steemit FAQ under vote...

Your down vote only afffects those individual accounts that have less REP and SP than you. Your down vote has ZERO effect on an account larger than yours.... see Steemit FAQ und REP ......

Your reputation goes up when accounts vote on your content. Getting downvoted by someone with a higher reputation can push your reputation down and make your posts less visible.

Users with a lower reputation score are unable to affect your reputation.

So you really only have 2 1/2 options not 3. One thing that may come out of all this is people gaining a better understanding of the downvote, and how it works and who it works for.

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Excellent points and I agree. It has been a while, but this isn't the first time people thought yelling could change the system. Yet, what they are talking about is part of the design of the system. Some of it is pretty funny.

On the other hand, just because you can, doesn't mean you should... Maybe the whales could be a bit gentler. Or at least cuddle after the flagging.

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The thing is transisto is upset about the vote bots and vote buying/selling. he needs to put his efforts into killing the bots, not the people. The steem white page is clear on bots, --- not allowed...
Steemit FAQ is clear on a person's vote --It is theirs to use as they see fit. Buy Sell Trade, not use abuse it does not matter... the FAQ for steemit is clear on that matter. As is the steem white page on bots and bot accounts.
People are split on this situation--Transisto has the right to use his vote as he see's fit. Period. No doubt about that..
Michelle has the right to use her vote,as she see's fit. If an individual wants to Sell his vote, and Michelle wants to buy it no problem, it is between the buyer and the seller, and transisto has no right to tell the two of them they can not do that..Period end of story.

What transisto did was allowed, was it right? In his mind it was. It is easy to justify anything a person wants to justify. All the justification in the world, still in my opinion does not make what he did right.

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I agree about Michelle has the right to buy a vote and it is between her and the seller.
However, I also support transisto's right to upvote or downvote how he sees fit.

I don't agree with his choice and method, maybe but I think he is justified to use his stake which he purchased... ANYWAY he wants. Even if I disagree with him. :) Nice discussion.

Thats great conversation about our steem power holding. Yeah..SP more important for ability to receive and distribute our rewards. But how does it work and how to give measurement range to SP worth?

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I am not sure I understand the question, would you try to reword it please.

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I ask you from you, how would be more important steem power hold?

The way the community is growing ,in near future it will be hard enough to obtain rewards as users are gonna increase ,hence who knows the value shall increase exponentially!
SO HOLDING STEEM MATTERS !

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If we see the growth we need to take off, I speculate it will be very hard to earn. This is good. Nothing that comes easy is valuable.

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I agree upon that !

yes holding SP is important in Steemit, the more SP you have the more voting value. It's like an investment. The way Steem is performing now I think holding more SP now will be a great future invesment
Cheers!

17t6p4.jpg

@whatsup,
This is why I like POW, but if there is POW at STEEM then there is no Steemit! Coz who pay for contents! Actually this is a great concept, but reward pool misuse, we should not let that happen! But in most cases it is done by Big Whales or Bots! Coz they hold the most of SP power in their accounts!

Cheers~

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The distribution of Steem is extremely concentrated and that comes up over and over in different ways.

There can be no reward pool abuse, due to the fact the ability to distribute votes is in the hands of the stake holders. Some do take advantage of the fact many aren't watching.

While I don't agree it is abuse, I do think there is a lot of poor judgement, experimentation and trying to find our way in a brand new project. There is no model to copy, we have to figure it out.

So i guess the reward pool is not fixed as some people claim it is, since more steem is created everyday?

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Yes, new steem is generated each day, actually probably constantly. It seems fixed due to the voting bots, but it actually isn't.

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Thank you, am more relaxed now.

Such a simple post, yet so enormously necessary. Thanks for that, hope people will read it. May it help the readers in riding the emotional rollercoaster of swinging payout rewards during flag wars.

I am holding my SP because I still belive in steem and steemit. When it hit at least $2 like last time or if it goes to the moon, I will fly high.

but still mine is a slow growth.
Hold that SP. 😃😃

Thanks for telling us about reward pool but the question is how much steem is created every day by steem blockchain is it a fixed amount of steem or it fluctuate daily and did the new produce steem evaluate the voting worth or the vote worth is peg with steem price. thanks for sharing though

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I believe the amount of steempower the blockchain creates each day is impacted by price and several other factors. I am afraid to guess. If nobody answers this question, I will go on a mission to get the details. :)

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haha, wish you a best of luck on this mission, i will also do more research on it as this is an important topic and every steemian should have proper knowledge about steem reward pool.

When you are right and system which you had discussed here is already known to me but I'd appreciate because it may help money new users to understand it how does it work.

Yes Steem Power, is of great importance. Tell me, how important is reputation, does it matter what value?

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Reputation only matters to the humans. I believe the blockchain ignores it. It does not impact your ability to vote or to retain rewards.

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Thank you .

@whatsup - You made a good question... Why hold SP if it's POS.... Hope to hear good answers from experts....
To get more audience, I wish to ReSteem your post.

+W+ [UpVoted & ReSteemed]

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Hold SteemPower, because it increases your ability to distribute rewards to content you think is good for the investment you've made.

Hold SteemPower because your vote on witnesses matters more if you want to influence the direction of the blockchain.

Hold SteemPower for Speculation the value of Steem will go up in the future.

Hold SteemPower to Rent it out via delegation.

I'm sure there are more reasons those are the first that come to mind.

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If it's good enough for Batman, it's good enough for me.

Oh yeah, you quite rightly pointed out what and how it happens in the blockchain STEEM and I have one question for you if I give someone a flag, do I lose the power of my SP. Thanks @whatsup

sp is very important for steemit.like an investment

Thanks for sharing reward pool contest to the steemit. I believe SP worth will support for more claim rewards. So via holding SP, it will be more importance.

Yes Steem Powe,,,,,,,,,,,,,
When you are right and system which you had discussed here is already known to me but I'd appreciate because it may help money new users to understand it how does it work. I like your post thanks for sharing...........//////////

Informative post

still holding my cute steem hehehhee

This post has received a 9.63 % upvote from @booster thanks to: @whatsup.

Thanks for the explanation!!

lets distribute daily ;)