The Upside To The Price Of SBD
This post may be about something that a lot of Steemians already know about and stating the obvious but I have learned never to make assumptions.
Steem Dollars (aka SBD) were meant to always have a $1 value. The coin is intended to be an alternative means of payment on the platform. This way Steemians can turn all of their Steem into Steem Power and still be able to lease Steem Power or use an upvote bot for example.
But...for some time now SBD has been worth a lot more than $1, some thinks this is a problem, others think that this is actually good. I am not going to debate whether SBD should go back to its original 1$ value rather the benefits that come from this unexpected rise in value.
So last week I did a post called: The one about Pre-ICOs and the total payout was $16.61 of which $14.40 goes to the author (yeah!) and $2.22 will be distributed among the curators.
When you submit a post you can choose how the reward will be paid out. When you go for 50%/50% option your reward will be split in 50% Steem Power and 50% Steem Dollars but if you go for the 100% option your entire reward (minus curation of course) will be paid out in Steem Power.
So back to my example. I chose to have my reward paid out in 50% Steem Power and 50% Steem Dollars. This is what I got:
As you can see there is something not quite right. You would expect that I would get an almost equal amount of Steem Power and SBD but instead I got 7.2 SBD and 1.248 Steem Power. So what’s going on?
Well, when you are paid out in Steem Power the algorithms calculate what the Steem value is of what you are owed on your post. So in my case $7.2 equalled 1.248 Steem at that moment of payout so that is what I got.
BUT apparently the system didn’t take into account that the value of SBD might once go to the roof. So it still pays out $7.2 rewards as 7.2 SBD. Which means it is very profitable to have you rewards paid out in SBD.
At the time of writing the price of Steem Dollars is $7.11 so for my post I received $58 in total ($7.2 in Steem Power and $51,19 worth of SBD).
As long as Steemit does not alter the payout system and the price of Steem dollars remains higher than $1 it is extremely beneficial to having your rewards paid out in SBD instead of 100% Steem Power.
If only there was an option to receive 100% of your rewards in SBD.
Luckily there isn't a 100% payout...I feel if there were then STEEM would eventually run dry, jmo. I do appreciate you clearing up this for me I had a small understanding at first. Thank you!
Glad to be of help. I am not sure if everyone knows about this.
Good Point, Thanks For Sharing! FOLLOWING YOU!!
I think for rise of SBD has helped minnows like me to up some power..
That is a good point. Maybe it was an intentional move on the part of Steemit to help us little guys ;)
your post is great and interesting for me ... I like your post. thank you for sharing your experience. we also need your suggestion and visit in our post.
I will stop by and look at what you've got.
Totally agree with you. Here's to hoping SBD continues to pump!
Thank you so much, great info! FOLLOWING YOU!!
As long as we can reap the benefits...I'm game!
I totally agree with you. You well described about the payout section.
Thanks buddy :) Hope it cleared it up for you (if there was ever any doubt).
Yes
Definitely a good time to be choosing 50% SBD payouts. Unfortunately for me, I somehow messed up last week and accidentally selected 100% Steem payout. It was unintended, and I didn't notice it. But since the system remembers your last setting when making a new post, several of my posts last week all paid out as 100% Steem. ARG!
:) LOL, talk about missing out. I don't know for sure if the SBD payout is a oversight on the part of Steemit or not (looks like it) but I am taking advantage for as long as it lasts. Daddy needs a new phone :)
I've been here not quite a month, and it took me a little while to figure this out (especially since I never had a payout for the first week). It does seem like a lot of people haven't quite done the math on this yet.
However, I'm a little afraid to talk about it, because I don't want the steemit folks to fix the mistake! :)
Hey man thanks for the help! I missed this article but found it from your most recent one. I've actually been wondering about this so this helped me quite a bit.
As of now, is it possible to receive more than 50% of the payout in SBD? Or is 50/50 our best bet? I, admittedly, have never tried changing it because I didn't quite get what was going on, until now.
Thank you!