The Daily Pen #38, Brave Rewards vs. PatreonsteemCreated with Sketch.

in neoxian •  5 years ago 

Unix Epoch: 1566427128

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Basic Attention Token Logo

Image copyright/trademark usage unknown, author not affiliated with BAT or Brave fair use applies

I noticed that Brave Rewards now has a Tip Me Option on Twitter. A friend of mine asked why someone might want to use Brave Rewards Tips vs. Patreon. I indicated that the Patreon transaction fees would be quite high by comparison with Brave Rewards.

Here's a basic Lite Patreon and Paypal vs. Brave comparison example:

Fees derived from Patreon documentation here and here and Paypal fees listed here. Brave Rewards fees are 5% incoming and $0.00 outgoing per documentation and my own experimentation.

Patreon Fees for new accounts after May 7th 2019:

  1. Platform Fees: Lite: 5%
  2. Incoming Paypal Fee: 2.9% + $0.30
  3. Outgoing Paypal Fee: 1% or $0.25 minimum

Brave Rewards Fees:

  1. Incoming 5%

Example Situation: A Patreon account holder is sent $5.00 from a content consumer through Paypal.

Incoming Fee:

  1. Incoming Fee is 2.9% + $0.30 = $0.445
  2. Platform Fee to Patreon is %5 of incoming (5.00 - 0.445)*0.05 = $0.22775

Total Incoming Fee = $0.67275

Outgoing Fee to Paypal = $0.25

Total Transaction Fees = $0.92275

It's useful to note here that Patreon suggests a minimum donation level of more than $1.00 ... Well, it's easy to see why.

Total Transaction Loss through Paypal+Patreon: 18.455% loss of donation in Fees.

vs.

5% for Brave

So there you have it. Brave and BAT payments allow content producers to keep more of their earnings. A lot more!

I've double checked my math, but please feel free to check it again and comment if I'm incorrect.

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