Hey there this is @prakhar9675 on this side and in this homework, I will answer all the answers asked by professor @sapwood
So let's get started:-
(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? (Screenshot required)
STU
STU is an abbreviation for steem token unit which refers to the final payout of any post in steem blockchain. On steemit, it is usually not used as an official term.
Break-up of STU
STU that is the total reward, is broken down to curators and authors in different ways.
The total reward is divided into two parts in the ratio of 50:50. 50% of this is rewarded to curators which is rewarded in the form of SP only.
The remaining 50% of the reward that is to be given to the author depends upon the reward setting set up by the author. Let's discuss:-
Reward setting set up by the author:- there are three available rewards setting to choose from. Those are:-
- 100% power up
- 50%SBD 50%SP
- Decline payout
This setting is set as 50% SBD 50% SP by default.
If the author has set up reward setting as 100% power up then equivalent USD worth of Steem power is given to the author.
If the author has set up reward setting as decline payout then the user won't get any SBD, SP, or steem. And the reward is taken back to the Reward pool by the system.
If the author has set up his reward setting as 50% SBD 50% SP, then the author will get his reward in SBD, SP, and liquid steem. But the ratio in which these are given depends upon the debt ratio.
If debt ratio is below 9%:- It is the ideal condition which is tried to be maintained. In this condition, the reward is divided only in SBD and SP and no liquid steem is given to any author. And the ratio of SBD and SP is 50:50
If the debt ratio is between 9 and 10%:- when due to fall in steem price, the debt ratio increases but it remain below 10 then liquid steem is also given to authors. And the ratio of SBD, Steem, and SP is decided by the SBD print rate which further depends upon the debt ratio.
For example:- Due to fall in steem price, Debt ratio becomes 9.5% then:-
.
SBD print rate= (10- debt ratio)×100
= (10-9.5)×100
=0.5×100
SBD print rate= 50%
.
This means, instead of 50% reward that was to be paid only in SBD, now this reward will be paid in SBD and equivalent USD worth of Steem in the ratio of 50:50.If Debt ratio crosses 10%:- as soon as Debt ratio touches 10%, SBD print rate becomes 0 and with the increase in Debt ratio, it remains constant on 0.
In this condition, now SBD is paid to any author and author reward is paid only in Steem and SP in the ratio of 50:50.
Calculation of rewards (STU)
In this section, I will calculate STU from my last payout.
my last payout
Total post payout:- $13.63
Author reward:- $6.84
Curator reward:- $6.79
Calculation of curator reward:- as discussed curators as paid only in SP. Now the curator reward is 6.79 USD, and assume at the time of payout the price of Steem (as provided by witnesses) is 0.568 USD,
Source
Them curator will get:- (6.79/0.568)
= 11.95 SP
Calculation of author reward:- Now as I have set my reward setting as 50%SBD 50% SP, I will get my reward in the form of SP, SBD, and steem and the ratio will depend on the debt ratio.
As of now, the SBD print rate is 100% which means the debt ratio is below 9 %. And whole author reward will be rewarded only in SBD and SP and no steem will be given.
Now total author reward= 6.84 USD
Now as in steem blockchain, 1 SBD is considered equivalent to 1 USD.
So, Total SBD= 6.84/2
= 3.42 SBD
Total SP = (6.84/2)/price of Steem at the time of payout.
Now as two days ago(at the time of payout) the price of Steem was a little higher than that of today. So according to coinmarketcap, it was around 0.57
So, total SP= 3.42/0.57
=6(estimated)
So according to this calculation,
Curator will get 11.95 SP and the author will get 3.42 SBD and around 6 SP.
Which resembles the reward I got and claimed two days ago
Link of the post I used for this calculation.
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 see my raw reputation, I visited the steemd.com site.
And my raw reputation came out to be 63,576,921,533,516.
Now I will calculate my reputation using this raw reputation score
So as we know that:-
Reputation = [{(log10(raw reputation score))-9}×9]+25
= [{(Log10(63,576,921,533,516))-9}×9]+25
= [{13.8032-9}×9]+25
=68.2296
Reputation from steemworld.org = 68.229
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?
On my last payout, I got 3.420 SBD, and 5.891 steem power. And from the same post curator got 11.95 steem power.
Calculation of worth of liquid reward in terms of USD:-
From my last post, I generated an author reward which includes 3.42 SBD and steem worth 3.42 SBD and also curation reward worth 6.79 USD.
To calculate the percentage of liquid reward (In USD) total reward (in USD) must be needed:-
Worth of SBD in terms of USD= 3.42×7.22= 24.69 USD
So worth of Steem power I got in terms of USD= 3.42 USD
Also, this post generated some steem power for the curator which is worth = 6.79 USD
Now total reward generated from this post in terms of USD= 24.69+3.42+6.79
= 34.90 USD
Now the percentage of liquid reward as compared to total reward generated in terms of USD = (24.69/34.90)×100
= 70.74%
Now the ratio of author's reward in terms of USD and curator's Reward in terms of USD =
So from my last post, I generated a reward worth a total of 34.90 USD.
Author's reward in terms of USD = 24.69+3.42= 28.11 USD
Curator's Reward in terms of USD= 6.79 USD
Ratio of author's reward to curator's Reward in terms of USD= 4.13:1
Or
=(4.13/4.13+1)×100: (1/4.13+1)×100
= 80.5%:19.5%
Explain how the rise of SBD has shifted the supply dynamics
In steem blockchain, the price of an SBD is considered to be 1 USD. And 25% of the total reward is paid In liquid to the author. But with the increase in the price of SBD,
There are two main consequences:-
First, people get more steem when SBD is converted into steem. For example, if SBD is having a value of only 1 USD then in that case when SBD will be converted into steem, only 25% of the post reward will be available in liquid. But as the price of the SBD has increased much, now we are getting more steem on conversion. And more than 50% of the total post reward (in terms of USD) is available in liquid. Also when SBD is converted, to match the demand of Steem which a user will get against that's SBD, more and more steem has to be supplied. this also increases the liquidity of Steem.
Secondly, people tend to sell it because of the high price immediately because unlike steem power it can be transferred anywhere anytime. And can be used for selling for fiat currency or buying other cryptocurrencies.
This ultimately increases the supply and liquidity of Steem in the market which ultimately decreases the price of Steem in terms of USD.
Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?
As we have discussed that with the increased value of SBD, the supply dynamics of Steem have been changed. According to steem blockchain, SBD is considered equivalent to USD and only 25% of the total reward is provided in liquid. But as the supply dynamics have changed due to the increased value of SBD, the total liquid reward of a post has increased much more than 25%. This also affects the steem cryptocurrency. Due to high value and more cash out, the demand for Steem in the market is decreasing while supply is increasing due to more cash out. This makes the steem struggle and price of the steem doesn't increase. Also on the other hand it affects the curation reward which ultimately discourses people to increase their SP.
Now to encourage people to increase their steem power and to make total liquid reward back to near 25% of the total post reward, initiatives like #club5050 are very helpful. Under this initiative, users are encouraged to power up more than 50% liquid reward and users who do this will get extra upvotes
For example now onwards, in steemit crypto academy, one number is reserved for these users who fall under this category.
For example:- total payout from my last post was 13.63 USD
And today reward in terms of USD= 34.90
Liquid reward = 3.42 SBD or 24.69 USD
Reward in the form of SP in terms of USD = (author's reward+curator's Reward)= 3.42+6.79
=10.21 USD
Now 70.64 % reward of this post was rewarded in liquid.
Now if 50% of the total reward that is is powered up
Then now liquid reward in terms of USD= 24.69/2
= 12.345 USD
Now worth of all SP in terms of USD (author's reward in SP+ reward powered up+ curator's Reward in SP)= 3.42+12.345+6.79
=22.555 USD
Now percentage of liquid reward = (12.345/34.90)×100
=35.37 %
So as you can observe that percentage of total liquid reward came down to 35.37% from 70.64%
This will help in shifting the dynamic supply back to normal means liquid reward back to nearly 25% of the total post reward and ultimately will help the steem to increase.
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?
If a user has a reputation lower than mine, upvotes my post then as per the user's SP, my payout will increase as well as my reputation.
But if a user having a reputation lower than me, downvotes my post, then my payout will decrease based on the user's SP but my reputation won't get affected.
For example:- If a user has SP 2500 and reputation lower than me, will have a voting power worth 0.04 USD when voted 100%.
Source
Thus when this user will upvote my post with 100% power then my payout will be increased by 0.04 USD and my reputation will also increase by a minor fraction.
And as we know the strength of downvote is equal to that of upvote. Thus when this user will downvote my post will 100% power, my payout will decrease by 0.04 USD but as this user is having less reputation than Me, my reputation won't decrease. And I think it is a right move made by steemit also it is logical and justified.
Real example:- So now I will explain you using a real example:-
For this, I will be using two steemit IDs. One is mine @prakhar9675 and another one is of my friend @arjunparihar.
Before any action here you can see the reputation, raw reputation, and SP of both of us
So here you can see that Arjun's reputation is lower than mine.
Now I will downvote one of Arjun's posts.
As you can see I have downvoted his post but as my Effective SP is low, it didn't make any effect on his STU.
But as my reputation is higher than that of Arjun's so it certainly will affect his reputation.
Here you can see that after my downvote, his raw reputation score has been decreased. But I was unable to produce a big effect so it won't hurt his all over reputation
Now my one of the posts is downvoted by Arjun. So let's find out the effect of that
As you can see he also has downvoted my post but he also failed to produce any harm to my STU as his effective SP is also low.
Now let's see has he produced any effect on my reputation.
Here you can see, this action hasn't produced any harm to my reputation as Arjun's reputation is lower than that of mine.
We know that on steemit building a reputation is not an easy task. It is not just about getting upvotes but it also depends upon the curator's SP. Also, it gets getting hard and hard to build a reputation after every level. As described by the professor that when raw reputation score is increased 10X then reputation is increased by 9. This means a user who has a high reputation is certainly having much knowledge about the platform and must be producing quality posts for which he had gained so much reputation.
On the other hand, if a user having less reputation might not be having much knowledge about the Platform and might not be producing quality posts. It is okay if any user having fewer reputations downvotes any post posted by a user having a high reputation. It is okay too if the latter's payout is reduced but it is not justified if hard-earned reputation is decreased by a less reputed user. Because the former might not be able to understand the quality of the post published by the latter because of less knowledge and no skill of identifying good posts.
Conclusion
So in this task, we all learnt about the STU and payout on the steemit platform. I have been using this platform for over a year and still, I hadn't any idea about in-depth this payout and STU. But now I have a clear picture of everything related to reputation and STU.
We also came to know how reputation is calculated and how hard is it to Increase reputation. Also, I came to know that when the reputation of a user is affected and when not. And a user having a lower reputation than yours can harm your STU but can't decrease your reputation.
I want to thank professor @sapwood for such a task full of knowledge which me so much in-depth know about this platform
So that's all from my side.
Cc
@sapwood
#club5050 😀
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
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