The Importance of Debt Ratios for Authors' Rewards on Steem
It has been known that the credit to authors' rewards on Steemit, which amounts to 27% of the transaction value of SBD and STEEM depends on the debt ratio of an account. The success or failure of an account also greatly depends on its debt ratio as well. In this article, I will explain what are debt ratios and how it impacts authors' rewards on Steemit using simple examples and math formulas. This article is divided into five parts as follows: 1) Introduction 2) How to Calculate Debt Ratio 3) How the Debt Ratio Affects Rewards 4) Limitation 5) Conclusion
Top 3 Sources Of Income For Steemians
In light of most recent changes to @steemit rewards, it’s crucial to understand where our rewards are coming from. This is a complicated topic as there are so many interactions and competing factors involved. To simplify matters, I’ll break down our rewards into 3 categories: 1) curation; 2) posting; and 3) delegation.
What Is A Steem Account Worth?
In short, it depends. That's what you'll likely hear from someone who is curious about how much Steem Power your account has and if that steem power is even worth something. This post will help you understand a little bit more about how some of those things work.
How Much Value Do I Get From Posting?
In order to get a clear picture of how much value your steem posts are providing, you need to understand two different debt ratios. The first one is your current liquid asset-to-debt ratio. This is a simple comparison between your liquid assets (e.g., cash and bank accounts) and your total debts, including mortgage, car payments, and credit card balances.
How Much Does Upvoting Matter?
If you’re new to Steem, it might be surprising to learn that a single upvote can have an impact well beyond what you might initially think. That’s because votes are weighted according to both account and STEEM POWER. A vote from a single user with no STEEM POWER will only have 1x weight while a vote from someone with full STEEM POWER has 33x weight. If a post receives multiple votes with little SP, those numbers really add up!
How Much Influence Do I Have On My Own Rewards?
This is a direct result of your accumulated SBD and STEEM Power, but only if you have votes to push. The higher your votes, in relation to how much SP you have, directly affects how much influence you will have on your own rewards.
Influence And Reputation Count Too!
The influence and reputation that authors have isn’t just tied to their upvote power, but also how much debt they owe to curators. If an author is heavily indebted to curators, then their reputation will be less impactful in terms of their rewards.