Curation rewards explained in great detail

There is still a lot of confusion regarding curation rewards (even among users that have been here for a year). I will show you how exactly the curation rewards are calculated. Be warned though, curation rewards are quite complicated!

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Number of votes before you:

Beneath you see a diagram that demonstrates to you how your reward is being affected by what number of individuals have voted before you. As should be obvious most of the curation rewards are asserted by the initial 5 caretakers!

DISCLAIMER: I don't have the correct equation so I needed to mimic it. This diagram is somewhat more uncommon than reality, yet near the right recipe.

So you're probably thinking "oh that's easy, i'll just vote immediately after publication". Well, that won't work because there is a second mechanism called "reversed-auction" in place to prevent this (as explained in the next section).

Time after publication:

Below you see the graph that represents how much of the curation reward you will receive based on time of curation. In the first 1800 seconds after publication a part of the curation rewards goes to the author of the post!

Voting power:

This is the third factor that influences your curation rewards. After the hard fork of June 20th you can spend 2% of your remaining voting power per vote. So every time you vote your new voting power will be voting power * (98/100). Below you can see how your voting power changes when you start voting at 100%.

Your voting power regenerates exactly 20% of your used voting power per day (that's ~0.83% per hour, ~0.0139% per minute and ~0.0002315% per second). You can calculate yourself how long it would take to regenerate to a certain value based on your current voting power.

You can find your current voting power on www.steemd.com/@yourusername in the 17th row of the table on the left (don't forget to replace "yourusername" with your actual username!).

STEEM POWER:
This is the fourth factor that impacts your curation rewards. It just impacts your outright reward, everybody will gain indistinguishable relative prizes when voting in precisely the same.

Voting weight:

To make thinks even more complicated there is also a voting power slider when you have at least 500 STEEM POWER in your account. With this you can essentially truly curate how good you think content is. If you vote at 75% voting weight you used up 75% of the maximum 2% of your remaining voting power.

Reward pool distribution:

At most 25% of the total reward of a post will go to the curators (and 75% to the author). The reversed-auction (as explained earlier) will determine the exact percentage going to curators in case any curators voted within the first 30 minutes after publication.

Illustration:

Guardians before you have just contributed 100 STEEM POWER add up to

Just 1 guardian has voted before you

You have 100 STEEM POWER

You voted when the substance had been distributed for 10 minutes

You voted at 100% weight

The aggregate reward pool for this post is $10.00

For this situation half of the reward pool has been contributed by you (100 of the 200 aggregate), you voted precisely at 1/third of the initial 30 minutes at 100% weight and you voted second (how about we accept 40% as reward multiplier for that).

I will utilize the accompanying recipe to compute your curation compensate: [total remunerate pool] . 0.25 . [reversed-sell off multiplier] . [voting position multiplier]. Your prizes will be: $10.00 . 0.25 . 0.4. ~0.33=~$0.33. So in this particular case your curation remunerate is precisely 1/30th of the aggregate reward pool of $10.00.

Had you voted at 30 minutes or later and the other custodian came after you, you would have earned $1.50, which is 4.5 fold the amount! On the off chance that you were the principal voter at 30 minutes or later and no one voted after you, you would have earned $2.50, which is the greatest 25% of the aggregate reward.

Ideal technique

The perfect circumstance will be in the event that you are the main voter at 30 minutes after distribution and at payout the post has earned

In reality this is (almost) never the case. What happens in reality is that people eventually start to vote, similar to real auctions, but then in reverse. So the most optimal strategy is to constantly monitor how many votes and how much rewards the post has. Of course to do this completely accurately you need complicated software to calculate this real-time.

It's recommended that you do not vote more than 11 times a day at 100% voting weight if you can use SteemIt every day. When you do this you will have over 99% voting power available after 24 hours. You can vote as many times as you want, but after a few 100 votes you will receive less than 0.1% of the reward potential.

Don't forget to follow, resteem and browse https://steemit.com/@mahfuz420 for more information!