Question 1 - What is STU? What is the break-up of STU? Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout?
Steem Token Unit (STU)
Steem blockchain makes operates on the proof of brain algorithm in which authors and curators are rewarded for creating contents and curating contents on the steem blockchain. On steem, authors who create and publish posts on the steem blockchain are rewarded with a number of different tokens, for simplicity, developers on steem came up with the name STU which is the short for Steem Token Unit to represent the post payout.
STU is basically the unit that comprises of all the reward tokens that an author and curator receives when the post payout time reaches on the steem blockchain. Even though the steemit interface shows a single currency symbol, the steem blockchain proof of brain concept doesn’t payout a single token as post reward, instead it pays out a combination of different steem blockchain tokens as rewards such SBD, Steem and steem power (SP).
STU Break-Up
The STU breakup is basically the fair splitting of the different reward tokens on the steem blockchain. Once a post is created and published on the steem blockchain, the author and the curators who upvoted the post will receive a reward during post payout which is after 7 days. Currently on steemit, authors and curators are rewarded in a 50: 50 ratio. This basically means that the author and curators get a 50% share from the STU. Simply put, the author of the post will receive a 50% reward of the STU and the curator(s) would receive the other 50% of the reward as steem power (SP). The STU is broken up into author reward and curation reward.
Author reward
Author reward is basically the STU rewards received by the author during post payout. The steemit interface and the steem blockchain allows authors to set author rewards types in the advanced settings. For example, an author has the freedom to set how they want to receive rewards on the steem blockchain. The first option is to set a 50/50 ratio of SBD/SP payout. This means that the author will receive 50% of the post reward during post payout as SBD and the other 50% as SP. The second option is to set a 100% power up of post payout. This means that the author will receive 100% of the post reward during post payout as steem power (SP). The third option is to set a decline payout. This means that the author will not receive any reward for the post and the will remain in the reward pool.
Curation reward
This is basically the reward curators of a post receive during post payout. Curators only receive their own 50% share of the STU as Steem Power (SP) during post payout.
Calculating the Author and Curators Reward
.png)
From my last post reward payout screenshot, we can see that the author and curators reward is $9.44 STU. This means that I received 50% of the STU and the curators received the other 50% as SP.
Author reward
The author reward setting was kept at the default 50/50 split. This means that the 50% of the STU will be split in a 50/50 ratio of SBD/SP
Post payout = $9.44
Author reward = $9.44 / 2 = $4.76
Author reward = $4.76
Using the 50/50 split,
50% as SBD = $4.76 / 2
SBD = $2.38
50% reward as Steem Power (SP)
4.76 / 2 = $2.38
Using the steem feed price of $0.6013
Steem Power (SP) = $2.38 / $0.6013 = 3.958
SP = 3.958
To get the author reward value in USD value
SBD value in USD = 2.38 x 7.2 = 17.136
SBD value in USD = $17.136
Steem Power (SP) in USD = 3.958 SP x $0.6013 = 2.38
SP value in USD = $2.38
Author reward in USD = SBD value in USD + SP value in USD
$17.136 + $2.38 = $19.516
Curators reward
The curators of the post will receive 50% of the post STU in steem power (SP)
Post payout = $9.44
Curators reward = $9.44 / 2 = $4.76
Using the steem feed price of $0.6013
To get the curators reward value in SP
$4.76 / 0.6013 = 7.916
Curators reward = 7.916 SP
To get the curators reward value in USD value
SP value in USD = 7.916 x 0.6013 = 4.76
SP value in USD = $4.76
Question 2 - Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?
To indicate my steem account Raw Reputation Score, I will be making use of the https://steemd.com to check for the data.
.png)
From the screenshot, we can see that my raw reputation score is 92,782,699,196,497
To calculate the reputation
Using the formula; (Log10(Raw Reputation Score)-9) * 9)+25
Reputation = (Log(92,782,699,196,497)-9)×9)+25
Reputation = (13.967467 – 9) × 9) + 25
Reputation = (4.967467 x 9) + 25
Reputation = 44.707203 + 25
Reputation = 69.707203
Therefore my Reputation is approx = 69.707
Verifying the reputation score
To verify the reputation score, I will be making use of https://steemworld.org
.png)
From the screenshot of my account on steemworld, we can see that my reputation score of 69.707 corresponds with the reputation score from the calculation
Question 3 - What percentage(of the Post Payout) was generated as liquid rewards(SBD) from your last Post in terms of USD equivalent? Explain how the rise of SBD has shifted the supply dynamics? As per your last post payout calculate the ratio of Author:Curator Reward in terms of USD equivalent?
Percentage payout as liquid (SBD)
Looking at the calculation from question 1, the USD value of my last post payout is;
Total Author reward value in USD = $19.516
Curators reward value in USD = $4.76
Post Payout value in USD = $19.516 + $4.76 = $24.276
The liquid reward percentage (SBD)
($17.136 / $24.276) x 100
= 70.59%
Therefore the liquid reward percentage (SBD) in USD = 70.59%
To explain how SBD Price increase has caused a shift in the supply dynamics,
The steem blockchain rewards authors who create and publish contents on the steem blockchain from 65% of its reward pool in a 50/50 ratio for author and curators. This means that the author gets 50% author rewards of the STU as SBD and SP and the curators get 50% curators reward of the STU as SP. The 50% of the author reward is split at a 50/50 ratio of 25% SBD and 25% SP.
Authors receive 25% of their 50% share of the STU as SBD and the other 25% as SP. This means that only 25% of the reward is in supply as SBD and the rest is locked up as SP. With this we can see that a total of 75% (50% curators reward SP + 25% author reward SP) is powered up and locked up as SP. Since SP is basically Steem that is staked or locked up, it means that 75% have of steem has been taken out of supply.
However, the rise in price of SBD means that there is an increase in the authors reward in ratio of the curators reward. We all know that the steem blockchain mechanism has a 1SBD to 1USD peg, but this isn’t the case as SBD value in USD is way above 1USD. This increase in SBD value in USD puts more selling pressure on Steem and is not favorable in the steem market. This causes an increase in the supply of steem and decrease in the value.
Author:Curator Reward In USD
To calculate the Ratio of Author:Curator Reward in USD,
Post Payout value in USD = $24.276
Author reward value in USD = $19.516
Curators reward value in USD = $4.76
Author:Curator Reward In USD
Percentage of Author reward in total post payout
Where,
Post Payout value in USD = $24.276
Author reward value in USD = $19.516
Percentage of author reward = (19.516 / 24.276) x 100
= 80.39%
Approx. 80%
Percentage of curators reward in total post payout
Where,
Post Payout value in USD = $24.276
Curators reward value in USD = $4.76
Percentage of curators reward = (4.76 / 24.276) x 100
= 19.61%
Approx. 20%
Therefore the ratio of Author:Curator Reward In USD = 80:20
Question 4 - Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?
The club5050 initiative is an amazing initiative concept that aims to encourage steemians to power up at least 50% of their liquid rewards. Like I talked about earlier, the rise in the USD value of SBD has caused a shift in the supply dynamics which has caused an increase in the supply of steem which is not favorable for the steem market. As a result, there is more selling pressure on steem, causing the value of steem to decline. With the decline of the USD value of steem due to the increase in supply, investors are not motivated to power up their steem.
The club5050 initiative was created as an initiative to encourage steemians to power up at least 50% of their liquid rewards which is currently in SBD as Steem power. This means that if every steemian would do this and power up their liquid SBD as steem power SP, it would help to attain the desired supply of steem. This would greatly reduce the selling pressure on steem as more and more steem will be taken out of supply. The more steem is taken out of supply, the more the value increases since there will be less selling pressure on steem.
Question 5 - Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples?
For Upvote
On the steem blockchain, as an author, when I publish a post and a user who has high steem power SP and has a lower reputation than me upvotes my post, rewards will be generated from the reward pool based on the SP and voting power of the curator, and my reputation will increase a bit. This is because on steem blockchain, users with high influence such as having large SP increases payout STU and the author’s reputation.
For instance, Author (me) with reputation of 69 creates a post and publishes it on the steem blockchain. User (curator) with 100k SP and reputation of 65 upvotes my post. My post will generate STU for both the Author reward (SBD and SP) and curator reward (SP), and my reputation will also increase slightly due to high influence on the steem blockchain.
Also, Author (me) with reputation of 69 creates a post and publishes it on the steem blockchain. User (curator) with 300 SP and reputation of 60 upvotes my post. My post will generate STU for both the Author reward (SBD and SP) and curator reward (SP), but my reputation will most likely not have any increase due to low influence.
For Downvote
As an author, when I publish a post and a user who has high steem power SP and has a lower reputation than me downvotes my post, some portion of the STU rewards generated from other curators will be returned back to the reward pool based on the SP of the downvoter, and my reputation will decrease a bit due to high influence on the steem blockchain.
For instance, Author (me) with reputation of 69 creates a post and publishes it on the steem blockchain. User with 500k SP and reputation of 65 gives a full downvote my post. The STU generated from other curators will be returned to the reward pool, and my reputation will also decrease slightly. My post payout will be affected. This is because on steem, users with high influence such as having large SP can decrease the author’s reputation.
Also, Author (me) with reputation of 69 creates a post and publishes it on the steem blockchain. A User with 300 SP and reputation of 60 downvotes my post. There will not be a significant effect on my post STU and my post payout will not be affected, and also my reputation will most likely not be affected due to low influence.
Conclusion
The steem blockchain has proven to be very powerful and reliable when it comes to proof of brain. Authors and curators are rewarded for their social activities on the steem blockchain such publishing contents and curating contents on the steem blockchain. The STU concept has shown to be a really effective and efficient way of categorizing the steem reward tokens that makes it much easier to understand. Finally, the club5050 is an amazing initiative that would go a long way in helping reduce the supply and selling pressure on steem, and in turn have a positive effect on the value of steem as more and more steem will be taken out of supply.