After first considering using SBD as the Steem currency of choice for becoming a vested member in SteemCityNiigata, @kafkanarchy84 and I have decided that asking vested/interested members to contribute to this account in Steem, rather than SBD, is our preferred method of choice.
The reason we came to this conclusion is that determining the value of SBD in relation to Steem is potentially subject to error and confusion. If you, as a contributing member, send SBD to the SteemCityNiigata account, and the value of SBD in relation to Steem changes for the worse during the time it takes one of us to make a conversion for you, or, if we exchange it on the open market for a price that you don’t agree with, this may cause grievances between us.
For simplicity’s sake, it is best if everyone, from here on out, converts SBD to Steem, either through the conversion process or on the open market, before making contributions to the SteemCityNiigata account. These contributions will then be applied to your vested stake in the account, and they will determine two things:
- The amount of the shared weekly SBD rewards that you receive from this group.
- The amount of the monthly Steem rewards that you receive from this group.
The amount of Steem contributed to this account, regardless of price fluctuations, will not change unless vested members of the account choose to redeem some or all of their contributed stake. It is a constant figure which can be thought of as the Total Amount of Contributed Steem.
As @kafkanarchy84 has already stated in a previous post, the liquid rewards of the posts made on this account will be distributed to vested members on a weekly basis.
The percentage of the rewards members receive will reflect their stake in the Total Amount of Contributed Steem that the account has.
Similarly, the total amount of Steem rewards this account receives will be distributed to vested members according to their stake in the Total Amount of Contributed Steem that the account has. The Steem rewards that are distributed will come from posting rewards as well as curation rewards.
At the end of each month, the Total Amount of Contributed Steem will be subtracted from the total amount of Steem Power that the group’s account has accumulated. This surplus of Steem (rewards) will then be distributed to vested members. In order to access this Steem, the account will have to be in a semi-permanent state of power down. That said, any time that the amount of Steem Power (Steem that is powered up) drops below the Total Amount of Contributed Steem, the excess liquid Steem (that which is not part of the monthly rewards) will immediately be powered back up to return the account’s vested Steem Power to the Total Amount of Contributed Steem.
To give you a picture of how this will work, imagine that there are five vested members who have contributed Steem in the following amounts.
This means that each member’s stake in the account would be as follows:
Were the account to have 2,085 Steem Power at the end of the month, that would mean that the total amount of rewards available for distribution to vested members for that month would be 180 Steem. This Steem would then be distributed to vested members according to the percentages listed above. In other words, each member would receive the following amounts of Steem:
For members that are interested in becoming vested in SteemCityNiigata, you can make a contribution of Steem in any amount at any time by transferring Steem to the @steemcityniigata account.
When doing so, please write a memo that states Vest (#1) (Amount of) Steem. Your contribution will then be powered up and you will be eligible to receive your portion of this account’s monthly Steem awards after your vest has been powered up for one entire reward cycle (one month). The implication here being that, if you make a contribution in the middle of the month, you may have to wait six week’s until you are eligible to receive your first portion of the account’s distributed Steem rewards.
We think that is reasonable and we hope you will too.
Makes sense.
Thank you for the detailed explanation, must have taken a while!!!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Actually, it did take a while, but mostly because I spent a lot of time figuring out how to convert SBD to Steem in a way that would reflect everyone's stake accurately before realizing that the best thing to do is not use SBD. It was an interesting process.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
sometimes you have to try something to see if it works or not, sbd is fine if they didn't turn steem into it, ... it was fine having it as a internal market currency, I don't see the problem of trading it for 2dollars outside, it's better than to have steem take a dump because it became equal to the sbd since that's what we are printing atm
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The thing about this is you need to have a constant. In order to determine each member's actual stake in the group, each member must contribute something that is consistently measurable. The value of Steem has no bearing on stake. The total contributed Steem will remain the same regardless of whether it's worth $10 or a $1,000. You can convert the SBD to Steem, but each time someone new invests you have to determine the actual investment of each member by calculating the worth of one unit of Steem as determined by SBD. It's not that much work, but it isn't necessary. Plus, if you somehow make a mistake calculating the invested amount of Steem or, as stated in the posts, there is a disagreement over value, it could lead to a mess that is easily avoided by asking member's and potential members to do the conversion themselves before contributing to the group. It's not about what is and isn't possible, it's about what is the simplest and easiest and will create the least amount of dispute.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Excellent work man. Glad this post is here for everyone’s reference.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit