What is a Steemit Upvote? [An Illustrated Guide to Rewards]

in toolkit •  2 years ago 

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Toolkit posts are designed to help new Steemians get acquainted with the ins and outs of Steemit.com. If you have requests on components or systems related to Steem that you would like to see explained, please let us know in the comments below. [The graphics and text have been updated from our original Upvote post, here.]

What is an “Upvote”?


An upvote on Steemit.com is very different than a vote or action on any other social-media website. Clicking that little up-arrow is much more than a “Like” on Facebook or a “Heart” on Instagram. On Steemit, your vote taps into digital currency!

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In today’s Toolkit post, we’ll explain what an “upvote” actually is, where the rewards come from and and how they are distributed to content creators and curators.

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Where does the STEEM Come From?


In short - the blockchain! When you upvote someone’s post - Steem is not being withdrawn from your personal account. (This is a common misunderstanding.) You’re not giving anyone anything from your personal savings or Steem Power. Instead, your vote is actually tapping into a brand new batch of Steem. There’s a fresh digital batch produced everyday. Those new tokens are distributed among three parties; 10% to witnesses, 15% to Steem Power holders, and the majority goes towards authors and curators. That last category takes up the majority; 75% of all new Steem ends up here. That 75% is also known as the "rewards pool."

New Steem tokens are being created and distributed by the blockchain around the clock. How much? Right now there's tens of thousands (approximately 60,000/day) being created everyday. That's a lot! In 2016 the yearly inflation rate was +9.5%. That rate diminishes each year by 0.5% until the we reach about +1% inflation per year. So basically, there's a lot more Steem floating around now than there will be a few years from now! Check out this post by @penguinpablo to learn more.

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What happens when you vote?


When you click the upvote button you are telling the Steem Blockchain, “this is where I want X amount of the daily rewards pool to go.” The amount that you’re able to direct is totally dependent on the amount of Steem Power you have in your wallet. So the more SP you have, the more of the daily rewards pool you can direct to posts you like! (Your vote is not affected by liquid Steem or Steem Dollars, learn more about the differences here.)

You can check how much "voting power" your account has at any time by plugging it in at this website - www.steemnow.com.

When you upvote YOU are earning Steem also!


Authors aren't the only ones earning. Curators earn too! An upvote on Steemit is also a tool for you to earn curation rewards. Simply put, when a post or comment is paid out a portion of the rewards is redistributed back to the people that helped generate that amount. If you upvote a post, you’re effectively helping it gain visibility and support and you’re rewarded for that curation.

The amount you earn back from the post you upvoted depends on a number of factors - how much the post made during payout, at what point in time you upvoted that post, the number of votes before you upvoted, voting power, and so on and so forth. Take a look at this article to learn more about curation rewards.


Thanks for reading! We hope you found this "Upvote Post" useful. If you have any questions please don’t hesitate to reach out in the comment section. Check out our other toolkit posts for helpful tips and tutorials :

Steemit 101


Tutorial
Blog Post Description
180111_Wallet-Masterpost-11.pngWelcome to Steemit! - A welcome post for newcomers to Steemit and creatives interested in the world of cryptocurrency.
180111_Wallet-Masterpost-01.pngWhat is Crypto & Blockchain? - The most digestible guide for newcomers to the technology.
180111_Wallet-Masterpost-02.pngBasics of Steemit’s Interface - What everything means when you land on the Steemit website.
180111_Wallet-Masterpost-03.pngMarkdown Tutorial - Explanation of the markdown system and simple strategies for post structure.
180111_Wallet-Masterpost-04.pngSteemit Post Best Practices - A basic rubric for high-quality Steemit posts for Sndbox members.
180111_Wallet-Masterpost-05.pngSteemit Wallet - The ins and outs of the Steemit Wallet, its various categories, and how to interact with it.
180111_Wallet-Masterpost-09.pngHow much is your post worth? - How payout choices and redeeming functions operate.
180111_Wallet-Masterpost-06.pngWhat is a Steemit Witness? - The role and responsibilities of a witness explained.
180111_Wallet-Masterpost-07.pngWhat NOT to do on Steemit - Key and misc. pointers for new Steemians.
180111_Wallet-Masterpost-08.pngEarn STEEM by Upvoting - A Guide to Curation Rewards - A guide to curation rewards based on upvote timing.
180111_Wallet-Masterpost-12.pngWhat is a Steemit Reputation Score? - What your rating number means.
180111_Wallet-Masterpost-13.pngThe Benefits of Powering Up - A comprehensive guide to powering up.
180111_Wallet-Masterpost-14.pngLearning From the Steemit Carrot - Exploring drop-down icons on Steemit.
180111_Wallet-Masterpost-25.pngArt & Cryptocurrency - A New Stage for Craft in the 21st Century - An article on the impact of blockchain media on the creative world.

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Ok, I was definitely thinking down the incorrect avenue here.

you’re not giving anyone anything from your personal savings or Steem Power. Instead, your vote is actually tapping into a brand new batch of Steem.

Yes, I can admit, I was thinking somewhere, some way... my steem was going bye-bye. Thank you for clearing this up for me.

In regards to new steem tokens being created and distributed by the blockchain constantly... does this make the price less valuable since there are more being produced consistently? I'm thinking about how the USD is printed... the actual value of the dollar isn't much more than a sneeze into a tissue. The more the government produces, the less value it holds. Or am I incorrect?

Excellent question @goldendawne. In short (right now) Steem is counting on growth and a lot more users. (With eyes on the long term.) Luckily, our community is growing and people are building a lot of amazing applications onto Steem very frequently.

As time goes on there will be less and less Steem being "printed" each day. Inflation will dip down to +0.95% per year roughly 20 years from now. This whole timeline assumes big-time growth of the Steem ecosystem in the decade(s) to come. So it's true - the value of Steem could get chipped away over time if usership and utility begin to stagnate. Time will tell! But what's nice about Steem (and blockchain in general) is that the inflationary % is declining at a fixed rate. It's math that's predictable and immutable. Fiat can get printed and printed endlessly and circumstantially.

Thanks, you have answered some of my questions on steemit, still I want to know why sbd keeps reducing in the post before it pays out, and why posts that get $1 will still be divided by curators, I thought people only get curation rewards from $20 posts and above.

Oh, interesting questions @rejoiceavl... the $ amount that shows up at the bottom of each post actually fluctuates daily according to the market value of Steem. So before payout it can go up, down or stay the same (but for the most part it's always moving). Crypto is volatile :)

All posts are divided to curators and authors regardless of $ value. I don't believe there's a cut off point anywhere.

OK thanks alot for clarification.

Thank you for this simple answer. Definitely an explanation I can grasp onto.

I know my view, position and steemit career is long term; so I am anxious to see how many members continue on being dedicated to the platform and sharing quality posts and interaction over the next few years. I have noticed in the last month or so the quality of the commenting becoming a forefront positive change. And it's an optimistic change from the generic drive-by comments I saw months ago.

Thank you so much Sir, Finally i understand a little bit, how everyone makes money in Steemit. That's why i always follow you & read your post.I never bored while i am reading your post. You know how to present a difficult subject in simple & interesting way. Thank you so much for taking the time to post this information, it will help a lots of Steemians.

pijon (42) you are absolutely wright
Help to each other and enjoying life with more more money from steem plateform.

Thank you for your kind words @pijon! Glad this post could help clarify a few questions :D

You r Welcome Sir.

When you upvote someone’s post - Steem is not being withdrawn from your personal account. (This is a common misunderstanding.) You’re not giving anyone anything from your personal savings or Steem Power

Seriously never knew this till now
Well thanks @sndbox for this great knowledge

No worries it's a very common misunderstanding! Upvoting others costs you nothing but "voting power" (which you do have a limited amount of). You can check your current Voting Power at https://www.steemnow.com/

Thanks so much

Mining, Blogging ,Vlogging, pretty much the same thing because of Steemit and Dtube.

you're making steemit a great community with your content ! keep it up!

Thank you for your article. It is really helpful for People who are new on this Platform especially for me too. Now I unterstand more.

Fantastic, glad it could help :)

this is what i love from @sndbox .. sndbox teaches about steemit and invites all steemina to succeed together, a very valuable lesson about the ins and outs of steemit. thank you his knowledge @sndbox .. I become more familiar with blogchain .. !! i will always be here with @sndbox !! happy to read this article :) !!

That is like a complete user manual to me.Thank's for such helpful post.A lot of new comers will be benefited by this post.I have a question if i earn 4 sbd then only half of the sbd comes into my wallet few portion goes to sp,where does the rest goes?Thank's for such useful post.@resteemed

Thank you! Here's an article that will help answer that question... :D

https://steemit.com/steemit/@sndbox/how-much-is-your-post-worth-a-steemit-rewards-guide

Thanks for sharing these guides @sndbox, I am running an initiative very similar to yours except geared towards an incubator open to more people - I'm just building support at the moment, currently working with some big names in the blockchain industry behind the scenes, soon to be bringing them to Steemit.

Thanks again for sharing these guides, really helpful for beginners! I mentioned you in my second newest post, would really appreciate your support on it.

Hey thanks @lukebrn! Thank you for the shoutout as well :)

Looking forward to learning more about your incubator project. Steemit definitely needs more of these layers to help empower broader stretches of entrepreneurs and innovators.

Thank you! I will be putting it together soon, looking forward to sharing it with the community.

Thanks a lot for this artical very beneficial statistics you have percentage about upvote. Each one apprehend a touch but upvote is a big electricity, because a senior steemer only one upvote change the world of junior steemer. Good working boss

Indeed a very interesting article. I have just a question for you. How does Steemit give opportunities to new talented bloggers instead of powerfull steemit accounts only liking each others accounts to keep the pool in between powerful people? New people like me can give an upvote but only the votes of powerful Steemians make a difference, it seems..

  ·  2 years ago (edited)

It is very well explained. I feel that many Minnows dont know yet that they can earn while upvoting other posts. And I notice that the most of the comment, but not upvote. At least this will help them to understand the platform and how everything works here. And they will realize that the money in their wallet is not getting less.
Great work, keep it up :)

Absolutely! Thank you for the kind words @hanen That's a big reason why many users vote too conservatively. It's not taking anything away :)

Thank you for the information.
very useful and add my insights about steemit.

Thousands of thanks for this information! Just now I found your blog and I gave you follow! Very useful!

Awesome, thanks @stephan92!

THIS IS A VERY NICE POST AND ALSO AN EDUCATIVE ONE

BUT I HAVE A QUESTION, WHY IS IT THAT WHEN I UPVOTE SOME POSTS I DO NOT GET ANY CURATION BUT THE BIGGER WHALES GET THE CURATION, EVEN THOUGH I UPVOTED THE POST BEFORE THEY DID?

HELLO! Hah! Good question @davidsiedoma. You are in fact earning curation rewards, but curation rewards are proportional to your stake. Since you have X Steem Power, there's only so much curation you can earn. Compare that to a whale who might earn XXX Steem Power each week. Timing helps, but it's very dependent on how much SP you have as well.

https://steemit.com/@davidsiedoma/curation-rewards

This is very helpful. Thank you so much.

Excellent post @sndbox! This will help a lot of new beginners in the community! Thanks!

oftentimes we don't know how or why, this post helped me to understand where my vote value comes from, thanks for the information.

Glad you found this useful! :D

Upvote is so important for increase our reputation. Alright? @sndbox

Upvotes that you receive do effect your reputation. But upvotes you give out to others have no effect on your reputation score.

Yes. Alright. That's I mean, Sir.

Thanks for the article. Where did you get this information from. I read the blue paper but it wasn't this much detail. :)

Thank you, this information for me is very valuable, I really did not know how to use this platform well, I did not know about the rewards, in a few words you summarized many of my doubts.

Excellent Post, very illustrated

The amount you earn back from the post you upvoted depends on a number of factors - how much the post made during payout, at what point in time you upvoted that post, the number of votes before you upvoted, voting power, and so on and so forth. Take a look at this article to learn more about curation rewards.

Bits like this are the stuff that makes the learning curve of this place steep.

It is the same questions as "Why do my rewards get smaller within the seven days period?" or "Why do I get so little SP for my post, if you told me it was 50% of the total?"

Man, sometimes I get confused too...

WOW! Thanks! Excellent.

Upvote it most important part of steemit platform. Upvote means lot of things there. Many people didn't know rightful use of upvote.

Thanks so much for this informative post, It's really helpful.
Many of my questions have been answered by this post and I'm quite sure that also applys to many other steemians out there

Dear sir, I wonder if I could translate this article into Chinese. Thank you for your great work!

Thank You for that informative post right there @sndbox

Even seasoned user like me find this series of guides useful. New comers sure will be learning a lot from you. Cool work.

regards to know steemit family,
I follow you and you also please follow me yes.

save this info with resteem... thanks a lot :D

Thanks for sharing! Links to your post were included in the Steem.center wiki pages about Rewards and Rewards:Infographic. Thanks and good luck again!

Alhamdulillah... Nice post

Interesting post, thanks for sharing! One question regarding this statement:
So basically, there's a lot more Steem floating around now than there will be a few years from now!
How come? And is there any way to change this?

Definitely cleared up a lot of confusion for me. I always wondered where is this money coming from hahah and now I know :)

I am new to steem.
I found this very useful!

I will definitely look at your other post!

Thanks!!

my permission to share your post

A vote equally beneficial. Thanks @sndbox.

Great post, I've found answers to many of my questions, thank you😊

Great illustrations @sndbox your posts are really beautiful. would you like to collaborate on visualizing some data about steem. like the ratio of power downs and powers up on a daily base.

Wow, these I great. I can finally say that I umderstand...for real! Thanks, wish I knew this before!

After I read all the Post Content from you @sndbox my understanding of Steemit and how to generate Steem and Steem dollar for each Post, the more open my eyes in terms of giving a good Post so as to increase my account Rating and my income can increase,,, Thank you in advance

Thank you very much for this information..im ready to learn fast..my accout has just been approved.and im so glad i came accross the information it will be of a great help to me...kudos

Really, this is the most complete explanation I've ever read about Steemit for beginners. Thanks for the knowledge.

now thats a real ready reckoner for steemit. I keep juggling with posts whenever I have doubts but this looks like a ready list and i'm bookmarking it for future purpose.
Following your for more regular updates. Cheers

thank you for share information @sndbox...

Thank you for information.this is great post

As a newbie in Steemit, I'm very glad I've read this post. I knew sooner that I'm not losing anything but in fact I am to gain something when I upvote. I'm giving you an upvote for this helpful post. Thanks so much @sndbox.

This post clearly guide me to the right understanding about upvote. @sndbox Is it ok to resume in my language and refer to this original post to help my community.

This is a thing of true beauty. I really admire the work you're putting into these tutorials. It's a great thing to share with beginners. Bookmarking it for future reference.

If there's any way I can contribute, do let me know!