Again, this is an outstanding lecture on the topic of the Steem reward distribution system. Professor approximately covers all aspects that are related to the Steem Reward distribution system. Before attending this lecture, I have little knowledge about the reward distribution system. But after attending this lecture, I have learned and cleared all my doubts about Steem distribution of rewards.
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? (Screenshot required)
What is STU?
It is a term that is used in the reward distribution system at Steemit. Our posts get upvoted by the curator then we received rewards on the behalf of upvoted. The worth of upvotes is directly proportional to the quality of our post. Because this platform uses the Proof of Brain consensus algorithm, in which unique content that is created by using the human intellect is rewarded by curators.
In the above figure, we can see that post gets the reward of $18.91. In the figure, can see that the $ Sign is mentioned at the left side of the reward. This is a sign of Dollar. But in this case, it is not indicating the Dollar, because this reward is a combination of SBD and SP. That way the developer named this STU (Steem Token Unit).
What is the break-Up of STU?
Our post reward is divided among two parties, one is an author who makes the post and another is the curator. STU reward break-up starts after setting the Reward Setting. The author set the reward of a post in three ways.
- One is 50% SBD/ 50SP, in which reward is distributed among author and curator by 50 % ratio. The author received a 50% reward in the form of SBD and SP. And Curator received a 50% reward in the form of SP.
- Next, setting 100% Power Up in which total reward received in the form of SP.
- the Last setting is Decline Payout. It means the author does not want to receive the reward of the post.
Author Reward
We will understand the author using the illustration. In the figure, you can see that the post 100% reward. If the author set 50% Author and 50% Curator reward setting then 50% reward goes to the author. Again 50% author reward splits into 25% SBD and 25% SP. The author received rewards in the form of 25% SBD and 25% SP.
Curator Reward
The remaining 50% reward goes to the curator. Curator receives all this 50% reward in the form of SP. Both author and curator reward at distributed equally when the 1SBD = 1USD.
Calculation of Author and Curator Reward from my last Payout post.
Author Reward
In my last payout post, I set the 50% SBD/ 50% SP setting that is default setting. According to this my last the total Reward in STU is $18.91. This is post is posted from 7 days ago as you can see in the figure.
Author Reward in STU= $9.46
Author 25% split Reward in SBD= 4.73 SBD
Author 25% split Reward in USD= 4.73 USD
Author 25% split Reward in SP= 4.73 /0.5628
Author 25% split Reward in SP= 8.404 SP
Total Author Reward in the form of USD
SBD current price = $6.84
Author SBD value in USD= 4.73 x 6.84
Author SBD value in USD= $32.35
Author SP Value in USD= $4.73
Total Author Reward in the form of USD = Author SBD value in USD + Author SP Value in USD
Total Author Reward in the form of USD= 4.73+ 32.35
Curator Reward
The 50% reward received by curation in the form of SP. In the figure, the Curator reward is $9.45.
Reward in SP format = 9.45/0.5628
SP = 16.79
Curator Reward in USD = SP x Current Steem Price in USD
Curator Reward in USD = 16.79 x 0.5628
Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?
After visiting steemd.com, I get my raw reputation score.
Raw Reputation= 32,980,200,724,458
We will calculate the reputation of the account by the predefined formula given by the Steemit platform.
Reputation = ((Log10(Raw-Reputation) – 9) x 9) + 25
Reputation = ((Log10 (32,980,200,724,458) -9) x 9) +25
Reputation = ((13.5183 -9) x 9) +25
Reputation = (4.5183 x 9) +25
Reputation = 40.6647 +25
Reputation= 65.6647
In three Significant figuresFor verification of Reputation Score, we visit Steemworld.org. Here you can see my reputation score is approximately the same as calculated Reputation from Raw data.
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?
In question no. 2, I calculate the author and curator reward in the form of USD. So the total Reward in the form of USD is calculated in the following.
Total Liquide Reward in USD = Total Author reward in USD + Total Curator Reward in USD
Total Liquide Reward in USD = 37.083 + 9.45
The Percentage as liquid Reward generated from SBD from my last post USD equivalent is getting by multiplying the Total of Author SBD reward by the current SBD price in USD.
Percentage of Liquide Reward in USD Equivalent = Author Total SBD payout in USD/ Total post payout in USD x 100
Percentage of Liquide Reward in USD Equivalent = (32.35/46.53) x 100
= (0.7033) x 100
Explain how the rise of SBD has shifted the supply dynamics?
In the earlier stages of the Steemit blockchain, 65% reward from the pool is distributed among authors of the content. 50% of STU reward is divided into two different forms. The 25% of total reward is distributed in the form of SBD. And remaining 25% STU reward is distributed in the form of SP.
Most liquid rewards are distributed in the form of SP. SP reward is 75%. 25% goes to the Author and the remaining 50% SP goes to the curator. When the value of 1SBD=1USD and 1SP= 1Steem. When staking of Steem increased then it will increase the demand. When demand increased then it will increase the price value of Steem.
The reward in the form of SBD is about 70% of the total reward. In this way, the value of SBD increased. It will automatically increase the supply of Steem. When the supply of Steem increased then, it decreases the price of Steem. In this way, the Rise in the SBD will shift the supply and demand.
As per your last post payout calculate the ratio of Author: Curator Reward in terms of USD equivalent?
Total Payout in USD Equivalent Reward = $46.53
Author USD Equivalent Reward = $37.083
Author reward percentage in the post payout = ((Author reward / Total Reward) USD) x 100
= (37.083 /46.53) x 100
=0.7969 x 100
= 79.65%
Curators reward percentage in the post payout = ((Curators reward / Total Reward) USD) x 100
= (9.46/ 46.53) x 100
= 0.2033 x 100
= 20.35%
Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?
The #Club5050 initiative is recently taken by Steemit. In club5050 the half of the total liquid reward should be staked in the form of SP. This initiative is taken due to a rise in SBD value and a decrease in Steem value. The Value of SBD is about 7USD. It will increase the supply of Steem. According to the Supply and demand rule, when supply increased the price of assets decreases.
The Club5050 initiative is taken holding the balance in the reward system by 50/50, in which reward is distributed among authors and curator equally. When the 50% liquid reward is staked in SP then it will decrease the supply of Steem by 50%. When supply decrease then demands of Steem increase.
When we talk about my last post payout. The 71% liquid reward in the form of USD goes to the author and the remaining 29% liquid USD reward goes to the curator in the form of SP. When the #club5050 initiative is implemented then half of the liquid reward goes back in the form of SP daily. It will decrease the supply of Steem.
Half of 4.73 SBD = SBD
SBD in USD= 2.36 x 6.84 current SBD rate.
SBD in USD = 16.176 USD
SBD percentage of total STU = (16.176/46.53) x 100
In this way, the Club5050 initiative increases the demand of Steem by staking the 50% liquid reward into SP. When we stake 50% of our liquid reward into SP, then the percentage of Curator reward is increased from 30% to 34%. And the reward distribution system is again set at the place where it is started. The Author reward percentage is decreased from 70% to 65.27%.
According to the law of Supply and Demand, when supply increased then price decreased. When supply decreased then price increased. According to this law, Club5050 is working. When half of the liquid reward is staked in SP. It helps to increase the demand for Steem and decrease the supply of Steem. In this way, the #club5050 can shift the demand /Supply dynamics in favor of Steem.
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?
Users get benefits by encouraging through upvoting the posts. When someone upvotes your post then sometimes it is beneficial for the author and in some cases, it does not affect the post. We will discuss the few cases in which voters proved to be beneficial for the author.
In the following figure, we will understand the cases in which authors get benefit from other users. In the figure, when voter reputation is negative then the author does not get any reward in both upvoting and downvoting cases.
When voter reputation is positive then the author gets benefits from the upvote. Benefit percentage is dependent on the worth of the voter’s upvote.
When users downvote the post then it affects the post payout and reputation if the downvoter has a lower reputation than you, then it will not affect your reputation and post payout in any way. If the downvoter has a higher reputation than you then it will affect your post payout and your reputation positively.
According to the requirement of the question, if I chose the user who has a lower reputation than me. We will understand the scenario of both upvoting and downvoting.
Example:
Upvote: My reputation is 65. The user that is chosen with low reputation is 58. If this user has upvote power is $2. Then the user upvotes my post that already has STU reward worth $25.It will positively affect my post as well as my reputation. My post reward increases by $27. It also increased my reputation.
Downvote: If this user with reputation 58 has downvote power $2. Then the user downvotes my post that already has STU reward worth $25. It has only a negative effect on my post, not my reputation. My post reward decreased by $23. But in the downvote case, it will not decrease my reputation due to less reputation than me.
STU (Steem Token Unit) is a term used on Steemit. It is a combination of SBD and SP. The distribution of STU is depending on the Debt ratio. The total reward of the post is 50/50 distribution among the author and curator. Author 50% is split into two-part. 25% received by author in the form of SBD. And Remaining 20 % was received in the form of Steem Power. The rest of 50% of the total reward goes to the curator in the form of SP.
The total reward in the form of USD is received by the author is about 70%. The rest of 30% goes to the curator. It is due to increasing the value of SBD and decreasing the supply of Steem. According to supply and demand rules when demand increase then price increase and when supply increased then price will decrease.
Club5050 initiative is good for decreasing the supply of Steem. Due to this initiative, the half of total reward distribution is again staked in the system. It will help to increase the demand for Steem. When the user with a positive but low reputation upvotes our post, then it has a positive effect on our post payout and our reputation also. But in the case of downvoting of users with lower reputations then it will decrease the post payout but did not affect the reputation.