Understanding Steemit : Know How Steemit Reward System Works and How Rewards Are Distributed!

in #tutorial5 years ago (edited)

As promised in my post about Steemit economy and its currencies two days ago, this post is going to explain how Steemit reward system works and how it is distributed among Steemit users. To thoroughly understand the content of this post, it is recommended that you go through the previous post because both these posts cover Steemit economy and reward structure.

Previous Post: Understanding The Steemit Economy & Steemit Currencies Powered By Steem Blockchain

Image is designed by me via free online tool Canva.com and you are welcome to let me know if you find a relationship between bears and Steemit rewards.

If you'd like to know the struggle behind this post, you may read this post. Without any delay, let's move to the main topic.

Three Things to Know About Steemit Rewards Distribution

Before going into the details of the actual distribution, there are three things about the rewards that you need to know. All of them are briefly discussed below.  

1. Rewards are Shown in One Currency Only  

This seems simple but it is not. All the rewards on your posts and comments are shown with an amount preceded by $ sign. This $ sign means US dollars (USD) but in actuality, its value can be much less or more (currently more) than what the shown amount is. I will explain later. 

For now, just remember that Steem blockchain used $ sign because it was logical to do so. However, for the best part of few many weeks and months now, the actual USD value of Steemit rewards has been much more than the $ sign shows. It will also be explained.

The amount mentioned with $ sign is not what you will be paid. But it determines what you get. Your rewards will be converted to Steem Power (SP) and Steem Dollars (SBD) depending on whether you want both or just the SP. Again, everything is explained in the post.

2. Rewards are Paid in Two Currencies 

This is where things get a little complicated for innocent minnows and new fishes. The rewards, which are shown with $ , are paid (sent to your wallet) in two currencies; Steem dollars (SBD) and Steem Power (SP). How this division is done will be explained a little later in this post.  

3. Rewards Can be Converted to All Three Currencies  

Things get way complicated here but it's basically pretty simple. You get SBD and SP as reward from posts, comments and curation (the upvotes you do on others' posts). The only currency that remains is Steem.   

  • Well, you can buy Steem directly from the internal market against SBD. You pay in SBD and get Steem in your wallet.  
  • To convert SP into SBD or Steem, you'll have to go through a process called Powering Down. It is so named because powering down decreases your influence and value of your upvotes.  
  • When you start power down, SP is converted to Steem in 13 equal installments over a period of 13 weeks, starting one week from the time the operation starts. It can be cancelled any time.  
  • To convert SP into SBD, first you'll have to power down to Steem and then sell Steem for SBD in the currency market. 

This broader understanding of Steem, Steem Dollar and Steem Power will help you understand the next part where exact distribution of these rewards is explained.  

The Actual Steemit Rewards Distribution : Amounts, Percentages & Value

If you think you had enough twisting already, think again. You're in for another round of clarifying your doubts about rewards. Let's get over with this reward thing once and for all.     

Rewards are Shared Between Authors and Curators  

The amount in $ that you seen on your posts and comments is divided as follows.

  • At least 75 % of the amount goes to the author i.e. you. 
  • At most 25 % of the amount is distributed among the curators; the people who upvoted on it.  

The phrases at most and at least have some significance which is explained later in the post. To exemplify the above distribution, let me show you the final payout distribution on one of my recent posts. In the screenshot below, the final payout on this post is shown. 

You can clearly see how the reward has been distributed between author and curators. Let's do some math to verify the percentages.  

  • Total Amount = $561.03 (Amount is the total number of SBD the post would have earned if 100 % reward was paid in SBD)
  • Author Share = $423.89 (Doing the math, 423.89 is just almost 75 % of 561.03)
  • Curators Share = $137.13 (Which is just less 25 % of the payout amount)

Clear till here? The final thing you need is the final disbursement of author and curators rewards to the respective wallets. The process needs some serious mathematics and may not be as simple as getting 75 % of the post payout. 

But after enhancing your knowledge about the final disbursement of rewards into your wallet, you will be able to decide what options you want to choose for you and it will help you calculate your profits from the popular voting bots as well, if you use any.

How The Share of Authors is Paid?  

There are two important facts that we established till now about rewards.   

  1. Steemit rewards are paid in two currencies; SBD and SP
  2. 75 % reward from the posts or comments goes to the author.

Keep these in mind. They are useful for further discussion. Author rewards are rewarded as per the option chosen by the users so it is logical to discuss those options alongside the distribution. Remember, what you get as payout depends on what payout option you have chosen.

How Author's Share Translates to SBD and SP? 

When you write a post, you may have noticed a small option with the name of Rewards. After it is a box normally saying Default (50 % / 50 %).  When you click the box, some options come up. See the image below.  

The default option is most common as it distributes the whole reward into SBD and SP. I'll explain which option to choose. For now, let's start doing maths to find out reward distribution.

  1. Suppose (just like in all those math books), one of your post shows $100 reward. Now, if you're using default option, the distribution will be as follows.  
  2. Reward gets divided into authors and curators in 75 % / 25 % ratio. You have $75 left as author reward. This $75 will be paid out as Steem Dollars and Steem Power. The process is explained below.

Now, if you're using default option, your $75 will be divided in to two equal parts; in SBD and SP (50 % / 50 %). Let's study each of them.

  • SBD: Default option means you'll get 37.5 SBD (50 % of $75) in your wallet. So, your payout will be 37.5 SBD, other than the SP. The reason for this is that one SBD is pegged to $1 in value no matter what the actual price. It is explained later exclusively. Let's look at SP now.
  • SP: The other $37.5 will be converted into SP. As the SP conversion depends on Steem's price, you won't get 37.5 SP straight away. As per the current at price of Steem (at the time of writing, but prone to frequent volatility),  1 Steem = $4.95

  • We know that the other 50 % ($37.5) will be converted into SP. We also know that SP is basically vested Steem. Therefore, we will have to see what amount of Steem can be purchased by spending 37.5 USD. When we do the math, we get the exact amount. i.e.  37.5/4.95 =  7.575  SP.
  • So, your final wallet earnings from a $100 post payout will be 37.5 SBD and 7.575 SP as per above calculations.

Let me now show you the author reward I finally got from the post I showed in the screenhot above. Out of the $561.03 author share, I got 50 % SBD (211.947 SP) and the other 50 % was converted to SP (33.716 SP) as per price of Steem and paid in my wallet. As per the payout, price of Steem was considered to be $6.286 (211.947/33.716), which was the median price of Steem at the time of payout, almost two weeks ago.


I hope this example has helped you see for yourself how payouts are finalized and how author rewards are distributed. Just one last clarification regarding author rewards.

Getting More than 75 % Share in Author Rewards? 

If you see that the value of SBD and SP is more than 75 % of final payout, it is because you must have received a portion of curation reward as well. In such a case, curation rewards will be slightly less than 25 %, as in my post payout shown above. Curation rewards are discussed right below. Your share, however, will never be less than 75 % until policies are changed.  

Choosing Payout Options

Let me explain the three payout options for you and share with you which one is profitable and under which circumstances.

1. Default (50 % / 50 %)

How this option works has already been well explained above. It is the most profitable option at the moment because the 50 % SBD portion is worth hundreds of dollars. When I received the payout of the example post, SBD was trading above $10 (meaning $2100+ value) and Steem was trading above $7 (meaning $230+ value). That's more than $2300 for a single post.

2. Power Up 100 %

If you use 'Power Up 100 %' option, all your post payout will be paid out as Steem Power as per the formula given above (in this example post, 75/4.95 = 15.15 SP) which is not profitable at all because you will get $75 worth of Steem only. Another downside of 100 % payout is that you get SP which is not liquid (immediately sell-able or transferable). 

If I had chosen this option, I would have got just $471 value in form of 67.4 SP. Compare that with $2300+ I actually got.

Note:- Payout will still be distributed between author and curators (75 / 25 % ratio).

3. Decline Payout 

If you choose Decline Payout option, your post will not receive any payout. Nothing will be added to your wallet. The amount corresponding to upvotes will still be shown in payouts but with a strike. Steemit official accounts and witnesses often use this option to keep the reward pool for their users and not take money out of it. 

I used this option on two of my posts last week. You can see one of them here. I used the option because my post was not valuable enough to deserve any rewards and I just needed to pass on some information.

See the screenshot of a recent post by @ned for example. When I took the screenshot from his blog, I found an active post by @steemitblog which has declined payout. It shows a strike. Ned's post payout has been finalized therefore its shows $0.00 despite 332 upvotes. I remember this post having more than $800 showing. 

"Ilyas, Tell Me Which Payout Option I Should Choose & Why!"

I prefer 50/50 payout because SBD gives me flexibility to trade it with Steem in the internal market, making profit in the process. Read this post for example and see what I am talking about. I sold Steem at 1.35 and bought back at 1.10 in the internal market. It was 22.7 % profit for me. Could have held on and buy back at 0.14 (89.63 % profit) but I didn't know that such a time will come.

1.   When Steem is Under $1 But Higher in Value Than SBD...

You can choose Power Up 100 % because you will get more Steem. For $75 author share, you will get more than 75 SP. I don't know if Steem will ever go under $1 anymore but we all have seen craziest things happening in crypto so you never know.

2. If SBD is Higher in Value than Steem...

Choose Default (50 / 50) option because you will get liquid SBD which will have more value than the corresponding SP you will get.

3. When SBD is well over $1 (Like Now)...

Always go for Default (50 / 50) option. If there was a 100 % SBD option, I would use that in such a case because every $1 shown in the payout is worth $8.02 right now! The 37.5 SBD from a $100 payout means $300 right now!

In summary, Default (50 / 50) may prove to be a suitable option if used without switching to 100 % Power Up option. I have always used this option or declined payout.

How is Curation Reward Paid?  

There needs to be a detailed post about how curation works (and there is) but here are some points pertaining to this blog post.  

  • Curation reward is paid in SP only. 25 % of payout amount goes to curators. But there are algorithms monitoring curation reward and they are more complex than author payout algorithm. 
  • If a post receives upvotes immediately after posting, nearly 100 % curation reward goes to the author; you. Curation reward keeps increasing up to 30 minutes.
  • If it is upvoted 30 minutes after publishing, 100 % curation reward goes to the curator.  

You can earn curation reward from others' posts as others can earn it from your posts. I haven't touched curation much due to the fact that @calamus056 has explained curation rewards in great detail. You must go through the post as it is one of the best resources on curation reward system. 

With the major portion of this post on Steemit reward distribution system, I will share some useful information about reward system before concluding.  

Important Information About Steemit Reward System

There are some things you should know and understand to make the best out of Steemit. Some of them are crucial.  

1. Post Payout is Finalized in 7 Days

Every post or comment has exactly 6 days and 12 hours to get upvoted. It can be upvoted after that too but you won't get anything. After this period, post payout is calculated and then finalized upon completion of 7 days and rewards are sent to your wallet. Put your marketing efforts during these 7 days only.

One more thing I experienced is that if a post has been flagged and made hidden due to heavy downvote, it can be made visible only during the 7 days. Once this period is gone, no amount of upvotes can bring it back to visibility.  

2. Value of Upvote Depends on Voting Power

If you have not voted for a single time, you have 100 % voting power left. With each full vote (100 % vote), your voting power reduces by 2 %. It means if you give 10 full votes per day, your end balance would be 80 % voting power. But at 80 % VP, the value of your upvote in terms of $ would also be 80 % of what it was when you had 100 % VP. 

Note:-  Voting Power keeps regenerating and it will go from 0 % to 100 % in 5 complete days (if not consumed through voting). So, as you vote the VP goes down but at the same time your VP also regenerates daily (20 % per day, 2 % in 2.4 hours) so there's nothing to worry about unless you are voting too many times.  

3. Use SteemNow.com to See Your and Others' Vote Value & VP

SteemNow is a wonderful tool designed by @penguinpablo. I primarily used it to know my Reputation score but it is very useful for viewing yours and others' voting power and vote value. Here's my screenshot at the moment.

By scrolling down, you can also see you curation and outstanding post rewards. 

4. Relation Between Reward System and Reputation Score

This is extremely important to know. Your reputation score tells you and others where you stand on  Steemit. It is a good indicator of how hard you have worked, how much success you got and how much you have earned. 

Your reputation score increases only when you receive an upvote having some value the increase in the reputation, which happens immediately, is directly proportional to the value of the upvote your post or comment receives. 

Also know that going from number n to n+1 (i.e 35 to 36 for example) is more difficult than going from n-1 to n (34 to 36). To the point that going from 59 to 60 was more difficult for me to than going from 25 to 55.  

Related Resource:  Reputation Score 101 : What is Steemit Reputation Score, How is It Calculated and Why Should We Bother?

5. How is Your Account Value in USD Calculated?

If you look at your wallet, there's an amount called Estimated Account Value. It is calculated based on what you own in the wallet. Whatever amount of Steem, SP and SBD you have in the account adds towards the total value. However, SP delegated to you is not added or subtracted. Otherwise my account value would have $12000 more than it currently shows.

The value is not based on current price of Steem and SBD but the average price of last 7 days. So, the actual value of your holdings can be more or less than what is shown. My colleague and friend @jbn has covered the topic in detail. I am linking it for you.    

Detailed Study:  Your Estimated Account Value is Way More Than You Think It Is : Everything About Steem Wallet Value

6. Things You Can Do with Steemit Rewards

I compiled a list of 9 things you can do with Steemit rewards. People found it useful when I published it and I am sure you will find it useful too. I have since gained more insight and will publish an updated version of the things that can be done with Steemit rewards. It would be a super useful version and will take some time. 

7. Steemit Rewards FAQ

I am including the Rewards FAQ post by @dragosroua, who simply answered the most frequently asked questions. Newbies should definitely read it up.  

8. Where Do The 25 % Inflation Tokens Go?

We know that 75 % of inflation tokens come to reward pool. If you do not know this, do read the previous post that I linked in the beginning. But where do the other 25 % go? Let's see. 

  • 15 % tokens (of the remaining 25 %) are distributed to SP holders as an incentive to hold Steem in form of SP, which keeps the Steem supply limited and helps keep the token price up (demand and supply dynamics).
  • 10 % tokens are distributed among Witnesses (people chosen by Steemians' vote to produce blocks of Steem blockchain, process Steem data and make important decisions pertaining to the blockchain).

9. Why is $ Sign Used?

Finally, let's discuss, and remove the confusion around it, why $ sign is used by Steemit and why Steem blockchain considers it the value equivalent to USD value of a post. We have already seen that 75 % of the final reward showed $423 but was actually worth more than $2300.

The answer lies in SBD. SBD is Steem Dollar and it was pegged to remain close to $1 in value. So, logically, Steem blockchain considered post payouts to be almost equal to the actually show amount. If SBD = $1, the whole consideration is 100 percent true. For a $100 payout, 37.5 SBD will mean $37.5 and the value of rewarded SP will also be exactly $37.5 (it still is). Curation rewards will also be equal to $25 in value.

So, the use of $ sign was logical until the price of SBD was pumped due to huge demand on the external exchanges. I hope the whole system is clear now. I have covered reward system earlier too but I admit that my understanding was limited in some aspects. This post was much needed because it contains updated and fairly accurate information. If you find an error, do let me know.


That's all about Steemit rewards. I hope this research paper helps you understand the reward system better and use the information to your maximum benefit. This detailed analysis is part of my mission to leverage my brain to make Steemit the platform we all want it to be. Proof of brain, remember? 

If you have any question, do share it in the comments. It would be kind of you to support this post through your valuable upvotes and resteems. Helping this post with upvotes will not only benefit the community at large, but also will encourage me to put more effort into educating Steemians to create a better ecosystem on Steemit. 


I literally got a little anxious reading this.


I get anxious researching and then writing and then rechecking too. Because I am on a mission to make Steemit look like less of a mad house. Haha!

Same feeling here. Let's make Steem grow even more this year!

Thank you

You are welcome.

Thank you for this great post. It really summarises what a Steemian should know concerning the financial side of Steemit. After a few months on the platform, I had figured most of it out , but it is really useful to see it structured that way. Cheers!

This article must be bookmarked as a reference

Thank you very much! I hope it helps people who have queries related to reward system.

HOLY COW.....i think i just had an anurism. LOL

Very nice post with detail and complete informations specially for those who are new on steemit. Great effort @ilyastarar....thanks for sharing !

Great write-up! Thank you! You have a new follower, also resteemed to Best of Steem!

Thank you for this great reminder well explained :)

Thanks you so much for your appreciation!

You got a 4.61% upvote from @minnowvotes courtesy of @tradewolf!

In simple words, here is how it's done:

Let's say the total earning of a post is 100.

25% of this amount is deducted and is paid to curators.

25% of 100 = 25(Curators' reward)

Remaining amount: 100 - 25 = 75

50% of remaining amount is SBDs, so in this case, 75/2= 37.5

Now we will minus SBD part and we will have = 37.5

We will divide this amount with STEEM price and that is what we get in SP. Current STEEM price is 4.82. By dividing last remaining amount that is 37.5 with current STEEM price, we get SP = 7.780

So a post with $100 payment from Steemit in terms of SBD and SP is as follows:

SBD = 37.5

SP = 7.780

I hope it helps.

Steem On!

I definitely helps that's why I have voted it to top. It is a nice little summary of reward distribution. I covered such a brief summary in the Steemit economy post.

Suppose your post shows $100 reward. Upon payout, you (author) will only get 75 % of it (that too half in SBD and half in SP). Rest of the 25 % is converted to SP and distributed among people who upvoted your post (curators). For $37.5 (half of 75 %), you get exactly 37.5 SBD. The other $37.5 are converted into SP as per current USD price of Steem (you get as SP whatever number of Steem can be bought with 37.5 USD).

However, the information other than distribution is what makes this post a one stop shop for information Steemit reward system. That's why the length and the detail.

Thanks a lot Ilyas (@ilyastarar), this post is very helful to understand the principle of Steem,
By the way, I am following you now,

It's a very good post on this topic. Excellent effort.

Just saw your name. Yasir Bukhari. Following you bro. Good to see!

Thanks. Following you too. Keep rocking man.

That's if the post is yours? How much do the commentors and upvotors get?

Yeah. If it's yours, yes. Upvoters get curation reward as mentioned briefly in the post (estimated 25 % of your vote value). I do sense that commenting has an impact on rewards but I do not have anything concrete to say yet. I will search and include in the post.

However, by commenting, you create an opportunity to get upvoted. Author and curation rewards apply on comments too.

Amazingly well-structured post! And also it is very informative to those who are still new to steemit like me. Anyways thank you for postsing this :) you really help many people with this. Keep steeming :)

Thank you @ilyastarar, this is one of the most indepth guides on this topic I have seen so far. It is a bit sad that it is necessary to explain it in such detail. For example, when I started I just thought: I want to power up, so just chose the 100 power up option - not knowing that at the current steem price I was missing out a large portion of the potential rewards.

Its the best expained tutorial I encountered regarding the reward system topic - clear, straight forward, acknowledging that there are posts that already explain some of the details in a good way and links to them.

Congragulations for that masterpiece Ilyas - I knew all of this and stillread it all to enjoy the writing style!

Always, always wonderful receiving a comment from you! Thank you so much! It is an honest try to educate present and upcoming members here so that we can have well equipped users.

This tutorial is really useful!! Very well explained :)

I only want to add that there are also rewards for the beneficiaries (this is done when you use esteem, utopian, dtube, etc), and also mention that the curators must upvote after 30 minutes in order be well rewarded :)

For more details about the maths I posted some info:

Thanks for providing more details on the Steemit reward system. As I understand it, for those new to Steemit (like me), the best "strategy" is to accept all the initial default options (i.e. the 50/50 split), post quality content and don't worry about "cashing out." Then, at some point in the future, you'll be pleasantly surprised by how much more $$$ you made than originally expected... My head is still spinning by how you turned $423 into more than $2,000!

Welcome to Steemit, Dominic. Reminds me of Dom from F&F. Anyway, my head would spin even more when this $423 becomes worth $4000. Quite possible. Haha! Other way around too because it's crypto.

Thank you so much for this excellent post. For new fishes who are hungry of significant information on this platform this post is just great enough to fully understand how reward system works in Steemit.

I have to admit the fact that I am still a newbie here less than a month and I do have a lot of questions racin'n my head but every time I come across to your blogs it filled me up with the information I was thirsting for.

Thank you for being a blessing. Cheers!

This post is a treasure of information.
I was really confuse about many things like which payout option is best, why the $ sign is used, how the reward is distributed between author and curator, how is my account value in USD is calculated.
This post has all the answers of my questions I was looking for.
I must say you are a great contribution to the community.
Stay blessed!

Thank you for explaining almost everything if not everything. It's very important for a minnow like me.

Thank you. Thank you. Thank you! OMG, finally a comprehensive explanation of the whole thing. I already had a good grasp of the workings but there's just so many variables to try and comprehend and condense in such a short period of time. Plus, Steemit at first sight is exciting and you just want to dive right in, then it becomes a little daunting and scary the more you go down the rabbit hole! Like anything tho, you get better and understand more the more times you pull it apart and put it back together! Thanks @ilyastarar. You're a bloody champion! I look forward to reading more of your posts!

Permit me to say u have killed, beaten, slapped and baptised me with quality, well packaged and seasoned information on steemit i come across for the first time. Pls sir permit me to use this as a reference material to all my minnows, and newbies i introduced daily. Am so glad i read this and all thanks to u. Pls not that u have just given birth to a son in this community and his name is @sylvesterroy. Love u sir

Useful article, followed and resteemit, thank you very much

This is definitely the best explanation of rewards on Steemit I have seen.
I have been trying to piece the information together from the official FAQ, but this post explains everything so much better. Thank you!

Thank you so much brother for the mention.. this is a complete guide for anyone who wants to learn about steemit reward system.. and i dont think there is anything to add here.. this is as complete as any tutorial i have encountered.. resteeming this... steem on...

Thank you for your feedback. I always try to give my readers the best or content from the good authors on Steemit. Your post deserved a mention because I was covering the relevant topic.

This is fantastic knowledge. Thank you for taking the time to put all this together. There's so much to learn when you're just starting out on the platform. And even when you think you've figured it all out, there is still more to learn. I appreciate this information immensely!

Thank you so much for this article. It's the first one I have read that actually makes sense of the whole Steem business. I'm relatively new (and still a minnow) so it's good to finally understand why my SBD payout doesn't match the amount of $ shown underneath my post. One question though: why does the $ earned fluctuate? I have seen my rewards go down during the week before payout without the amount of votes changing. Thanks!

Steemit rewards (the $ amount) depends on price of Steem. Steemit takes median price (average of last three days) of Steem to assign USD value to your upvotes.

When price changes, the value of all future and currently pending payout votes also changes. That's why the fluctuation. I hope it is clear now.

Ah, thank you! For some reason I couldn't get it through my thick skull that the rewards are in USD rather than Steem dollars (although the $ should have been a giveaway!).

What a terrific explanation. Point by point, item by item you covered it all. I'll bookmark this so even when it is over 7 days old I can get it and point newcomers with the question to it.

Thanks for a thorough and honest review. I really appreciate it!

This is what encourages me to do such work. I have this target in mind to dish out useful content like this and may be it will be used by many people to educate new generations of Steemians. It excites me to have such a longterm impact. It is my contribution to Steemit community and I am thankful to you for helping me!

This is just too awesome and fully packed with great qualitative and educative content.
Keep up the great work @ilyastarar

Thank you for such a nice selection of words for my work. Wishing you success!

C'est juste trop génial et plein de contenu qualitatif et éducatif.
Continuez ce bon travail

Hey, I'm doing Operation Translation by @papa-pepper, and I'd like to translate this post to Chinese. Would you be up for letting me do it? This is just such a great post and I think more people should read it! I would follow @papa-pepper's guidelines, including a link to your post and crediting you in the title.

Only if you promise to maintain the quality of formatting. I do not like my work to be translated in badly formatted posts. Having said that, I would love my work to be translated and reach the Chinese community. I am from Pakistan so it is especially pleasing to help my Chinese friends.

Please format the post well. Imitate this post and use good header image. Giving credit where due and linking to original post is ethical to do. Contact me on discord if you need my help.

Wonderful explanation. Though it could be (it is) a little overwhelming for a newcomer coming straight from Twitter/Insta/FB school of thought to understand all this talk.

Even I was confused when I started and almost gave up but thankfully I stayed.

I am very happy with this clear and extensive post. If it wasn't to have a nice explanation on the Stemit reward system for myself, than at least to have a post to refer people to when they ask about the how's-and-what's!


This!!! A post to refer to people who need it. You made my day! I work for this very thing. To be able to impact more lives positively!

Thank you. Following you. :)

I am all for an introduction email after having been accepted to Steemit that explains all this stuff in the native language of the person joining.
I have given people many different posts on how-to or simple guides or etiquettes... There are hundreds of posts like it... waste of precious blockchain bandwidth if you ask me.

But thanks for the very concise but accurate list: you've basically created the email I hope future New Steemians will receive upon admission.

I just today replied the same message to this post
Maybe you can combine forces and get things done for real!

Firstly, I totally agree! Such an incredible idea to have an email containing all the required information. There are Welcome and FAQ pages (I read those right after joining) but I am not sure if people read them. The environment suggests that they don't!

Thank you! You found me a gem! Wondeful post!

Top Class Post on the Reward System - time well invested - I'm sure this will be used as a resource tool for newbies in the future.....

Thank you so much. I am thankful to you for sharing this knowledge further.

Thank you for this information. Am just a day old on Steemit and have been finding it hard to understand the whole reward system. And just ty clarify, you mean that the value we have attached to our post is equivalent to the value in US dollars and therefore will be converted to SBD depending on the exchange rate?

No. The value of a post is divided into 2 portions.

  1. 75 % in author rewards.
  2. 25 % curation rewrads.

The 75 % author reward is also divided in two portions.

  1. Half of it is converted to equal number of SBD. Price does not matter.
  2. The other half amount is $ is converted to SP. Whatever number of Steem can be bought with that amount.

I hope it's clear now.

Thumbs up. All clear now

Phenomenally detailed post, @ilyastarar! You put a lot of time and effort into this.

However, after reading this, I am realizing that they need to simplify and better explain the rewards payout system. Your post is amazing, but it shouldn't be this complicated! I can see how it would turn off new users. When a learning curve is steep, many people quit too soon.

All that being said, very impressive post. I have to give you a resteem on this one, because this must have taken you hours. I also will bookmark this post for future reference.

Thanks for writing this for all of us,

Thank you for your encouraging words. It took more than 8 hours split between today and yesterday. Totally worth it.

About the complication, I think it cannot be simplified and it is so beautiful the way it is (except some loopholes which are being exploited). The fact is that Steemit is based on Steem blockchain and the underlying protocol is coded into it and is difficult to change without a hardfork.

Actually, the involvement and interdependence of multiple factors has created too much technical complication for average user to understand. One of them is having three currencies on the network. The most important of them, Steem Power, itself is not a currency but vested Steem. But it has the most effect on how Steem blockchain works and what users get from it.

The inherent complication is why I tried to explain everything in plain English and math.

This is a really good post.

In-depth, pertinent and exhaustive in research. I can see why you're growing in rep so quickly mate.

I saw you in one of my posts, checked you out and glad I did, I like these kinds of posts (guides), so I'm following you from now on man :D


Thanks a lot for the info, especially for explaining how the SP reward works! Have a nice day!

Thank you! I'm writing a primer post for my non-steemian friends that will go up tomorrow, and I'm going to link to this post for a more in depth look of the rewards system.

Thanks a bunch for the post. I had no idea that I could change the payout options from the default settings. Good to know going forward!

Great article and explanation of steem rewards system. I have learned a lot but having all this in one place is awesome. It seems a little wonky how they calculate SP from rewards still.

Thank you so much. I hope more people will read and benefit from it.

I think $ sign is a catch for simple people. For those who in $ sign is a antiques. We easily convert this $ to outsiders $. We don't need a calculator.

Steem is an economy of posting. Instead of workin on a fabric, where your boss hate you, and wanna exploit you to the fullest, here, on steem, it's up to you how much to work.

I agree. I think SBD was pegged to value of USD for the same reason as well; to keep the $ sign relevant and let people know how much in USD they are going to make from a pending payout. Curation and SP part of author rewards still follow the $ value but SBD has gone through the roof.

I don't mind that because SBD has done great things for people having financial difficulties.

👍👍👍👍 nice

Ilyastarar bro, thanks for this post...this is a very informative tutorial for me...great post about steemit....ThankYou so much bro...

I read this post as if i was reading a medical textbook. Wow so much good information. I wish I could print it out and highlight it lol.

Blogs like thgis is what people need to understand how everything works , thanks :)

Welcome to Steemit. If you read more and focus less on getting rewarded for a few weeks, you will have all the weapons to go into the battlefield and win. Keep learning!

Thats true ... followed :)

Hi Ilyas,
Valuable post resteeming.
But i have question.
I got $16 dollar on utopian.io post.
But after that it started decreasing, went upto $12. And now also increasing.
Why this fluctuation is.?

You may have gotten flagged (downvoted), or if it was very recently the price of steem has dropped significantly along with most other cryptos in the last week or so. So the 7 day average which the site uses the calculate the dollar amount has fallen.

Nope. None of these. Utopian is different. If the post had been created on Steemit, your answer was spot on.

Ah, I didn't read the question properly :/

Happens with everyone who uses Utopian. I talked to the founder about it and he said they'll discontinue. It is a declared thing. Terms of usage.

Whenever Utopian bot votes on an accepted contribution, 15-25 % from the author share of rewards (that is 75 % of total amount) goes to Utopian to pay their team.

My post on Reputation Score finalized at $358 but I got only $300. Despite getting a repeat, bigger vote from Utopian, I was in loss. They will drop this practice soon.

Great post for minnows, question, how is "resteeming" paid out. And what significance does reaching 50 mean, such as value of upvotes and changing the power of your upvote? Thanks ahead of your answers..........

Resteeming only enhances chances of getting viewed, read and voted. It does not involve direct rewards. For reputation score, you can find Reputation Score 101 guide on my blog and see how it impacts rewards.

If it is upvoted 30 minutes after publishing, 100 % curation reward goes to the curator.

Is this correct - I got confused when I reached here.

isn't it like from 21 minutes to 30th minute there is a linear increase of curation rewards and then its 25% (fixed curation rewards) ?

The formula in the code takes into account the difference between the minute you upvote and 30 minutes. If your time is under the mark of 30 minutes, the differnce comes into play and the corresponding amount is given to author instead of you (the curator).

I'm not a coder so I won't go into more detail. But anytime before 30 minutes does have a negligible to significant effect on curation rewards.

By 100 % of curation reward, I mean the 25 % of a single voter's vote value. For example, if I upvote a post with $1,l after 30 minutes, I am likely to get $0.25 worth of SP as curation reward.

But, it is not as simple as that because so many factors come into play; especially the people who voted before you.

By 100 % of curation reward, I mean the 25 % of a single voter's vote value.

ok, 25% of the vote value is awarded to the curator if voted after 30th minute and before 30th minute a portion goes to the author (because of the linear increase from 21st minute to 30th minute).

Thanks for your time to answer the query. Appreciate it :)

Most welcome.

Thank you so much for taking the time to put this together for those of us trying to learn how everything works here. Great content and pretty cool to get rewarded for posting our stories, pictures, etc, and engaging in commenting on others posts in the community.

To understand this STEEMIT isn't easy at all, it's like reading a full text book.

thank you for this wonderful expository to streamit, I must confess I was really enlightened the more. Thanks to you, as a new comer to steemit, I would love to learn more from established people in steemit, people like you. Have followed you. Lovely post

This is a wonderful post, it's so informative. Honestly, wished I had seen something like this in my first weeks on steemit

I have posted this in the hope that people will be able to find it in the first week. Let's see. Thank you for your feedback.

Very well explained post about steemit complex topic of distribution rewards.I have clear my concepts related to this topic.Thanks for sharing this with steemains.

Very informative post. One question though, how and when is the 15% paid? I have never noticed any payment that I couldn't account for with other rewards, did I just miss it?

An experiences user who has been around for at least one year may be in a better position to answer this. I think the payments are annual. Not hundred percent sure on this.

@timcliff, please educate me and indurkin on how and when the 15 % Steem tokens are paid to SP hopders. Thank you!

This was a worthwhile read. I wasn't aware of how the curation rewards are calculated. Ive bookmarked this page and will be returning to it again and again.

all the questions I had in mind so far have been answered already. thank you

Thank you so much sir. I resteemed this for all my friends and followers to know more about this wonderful platform. God bless :-)

Thanks for this post! I will be reading up on this all night, I just posted a post with some simple questions, that you break down nicely! Check it out and see if you can help me answer them! @ilyastarar

This is really nice explanation of how rewards how a shared!
I almost thought before i was been robbed of my rewards. Lol😂😂😂😁

Hai Ilyas, I'm a newbie here. Feels like I just got a new treasure after finding this post. A lot things to learn but it's all worthy. Thank you.

One needs a pen and paper to read these type of post,exhausting but very comprehensive!kudos!

I was a little lost with this mechanism, but you explained it pretty simple. So, thank you very much.

This is a great post thank you now I at least know how useless my up voting has been and what some of these different areas mean thanks a lot

I have been reading this for two hours, and still trying to understand. I resteem your post so I can go back and read it again. Thank you brother for such a detail information regarding the rewards.

Am really still trying to understand how steemit works...your post was very detailed although you found a way to make me read to the end by prolonging your explanation...thanks for sharing

Wow too much informative post .
I really needed to know about this because i didn't know .
Now i can understand many things .Thanks for sharing this good informative tutorial.

@ilyastarar thanks for sharing info in such detail and simple way.

hello, this topic is very interesting, you explained it very well and you gave it the necessary importance. I hope to see more blogs like this, I'm new here, I'll follow you. : D

Thank you for your feedback. Please do not forget to visit my blog. You will find useful help which will enable you to do great on Steemit.

thank you very much, do not forget to take a look at my blog :)

I don't get if i should wait until I have 100% voting power to vote? I'm at 85% so should I only reatsteem and comment? Joy

Nope. If you full vote at 85 % , you will be left with 83 % but that 2 % will be recovered in 2.4 hours and you will have 85 % again. You can vote before going to sleep and have 6 % recovered in the morning. Keeping VP above 80 % is wise, especially when you have high SP.

Use Busy.org to vote because there you can adjust each vote.

Bittrex wont let me in . where can i buy steem with my debit card? I want to power up. Is coin base cool? Thank you for the info great post. Joy

Write Tutorial 2 how to buy steem ilyastarar in Google and you'll get your answer.

Thank you. You are a great teacher and a fine helper!!

After 30 minutes will I get any curation rewards? Like if a post is 3 days old. Thanks. I keep rereading this post. It's great. Keep 'em coming!! Joy

Yes, of course. If the post has not be voted much by anyone, you will get good curation reward on it. 30 minutes is the time when the early voting penalty (because part of curation reward goes to the author) comes to a halt. After that, maximum curation rewards can be earned depending upon many factors.

I hope to learn how it all works soon and publish an exclusive post on curation rewards.

I look forward to that!! Thanks. Joy

Reading this makes me more ''steemized'' Steemit reward has improve lives and smiles upon the faces of youths in developing nation...

Thanks so much! I joined up a few weeks ago and I've been totally confused until now :D This was extremely helpful!

Your post already resteemed. Thank you for your well explained post for newly steemit like me.

Great article for the beginners like me. I went to it thoroughly and learned a lot about how steemit works. Thumbs up!!

Nice Post, It now makes things litle clarer for me.

Wow it's really amazing I was searching such information and you done it Thanx and keep it up I follow you .

Can I See how many Somebody upvote me in $?

Steem More Info+ plugin/add-on on Chrome/Firefox (mobile supported). That's what you need.

great informative post! i now have an idea how steemit really works. Thanks!

Wonderful explanation sir. I'll read this over and over and over till it becomes a componet of my blood. Thanks for the educating me!

Most welcome and you have the right attitude towards learning and it will greatly help you!

amazing post. cleared my doubts. thanks.

Super in-depth bro

Is there a way to check curation rewards i get from other author's post? I can see only my post rewards and comment rewards.

Sorry for delayed response but I hope you will get to this comment from your replies tab.

There are many ways to check that. I am sharing two simple ways.

Steemit Wallet

Under rewards, you can view curation rewards.



Simply go to steemnow.com/@sweetjoy and you will see many details about your account and rewards. Curation rewards, latest upvotes and pending payouts and much more.


I hope your querty is solved.

Wow, this is really informative. I know have better knowledge of payout now

So glad that you understand better how it works. That's why I posted this.

Now i get it clearly thank you so much

Glad :)
Learn more and you will all the good things.

it is a helpful post.we know about steem by this post clearly.good work in the artical.

nice to see you bro here , mai Isb sy belong krti hun, Its really a honour that you are doing great here

Seems like we joined around the same time. Quite possible that you are here as an indirect result of my efforts to bring our people here. Some are doing great. Thank you for your words. Do let me know if you need any guidance or have some difficulty. I'll be glad to guide.

@ilyas thank you dear , I want to increase my steem power , what is the best way ?

Sorry for delayed response. Increasing Steem Power is a task which can be increased in many ways. Reach me on discord or fb. Same name.