In this post I will demonstrate why taking a 50/50 option is currently better than receiving 100% in Steem Power.
I’m not suggesting withdrawing your investment away from Steemit, rather, I’m saying you can increase your Steem Power by taking the 50/50 option. As you will see in this post, the difference is currently significant for the effort required.
This morning I received a payout for a post. My payout setting is 50/50 so I received 12.463 units of Steem Power and 30.408 units of Steem Backed Dollars (SBD). This was based on an author reward of 60.8 SBD so 50% (30.4) was paid in Steem Backed Dollars and the other in Steem Power.
Now, with my SBD, I can transfer them to Poloniex and the value of my SBDs on Poloniex is currently $58.97 since one unit of SBD is worth $1.94 at the time of writing.
Now, what about my other 50%, the Steem Power allocation of my reward. This seems to be allocated assuming the value of SBD is worth $1 so it allocates the number of units of Steem that you could buy with 30.4 Dollars, NOT 30.4 STEEM BACKED DOLLARS. If the Steem Power allocation was based on 30.4 SBD, I would have received 58.97/2.27(current price of Steem) or 25.97 Steem Power.
So, what if I had elected for the 100% Steem Power option? Well then the total allocation of my reward would have been based on the assumption that Dollar/Steem Dollar exchange rate is 1:1. I would have received 12.463×2 = 24.926 SP.
A good way of looking at this is to compare the total value (in US dollars) of the reward under both options.
Option 1 (50/50)
- Steem Power: 12.463 = 12.463*2.27 = $28.29
- Steem Backed Dollars = 30.408 = 30.408*1.94 = $59.13
Total = 28.29+59.13 = $87.42
##Option2 (100% Steem Power)
- Steem Power: 24.926 = 24.926*2.27 = $56.58
- Steem Backed Dollars = 0
Total = $56.58
So, option 1 gives me $87.42 and option 2 gives me $56.58. In other words, you will receive a payout of 54% higher under the 50/50 option right now.
This all depends on the market price of Steem Backed Dollars.
When the price of SBD equates to dollars, there will be no difference. If the value of SBD is less than dollars, option 2 will be more profitable.
Thank you for reading.
This post received a 20% upvote from @randowhale thanks to @bitgeek! For more information, click here!
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Nice post man, i have notice that to. When i first started i did like 4 videos 100% and rest 50 / 50 and those videos seem to have got me more =/ Keep up the posting! Followed / Upvoted
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Big upvoted. This is really handy as i will be having my first payout soon and i have always wonder what is the different between 5050 and 100% power. Now i will definitely choose 50 50 and convert to power by the time i get the payout. Many thanks for your clear explanation.
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Very concise explanation! The option for the 100% payout is almost like those old grocery story commercial parodies, "One can of beans for 10 cents, 2 cans for a dollar!"
They give you the option to go for the quick payout, knowing full well, the long game pays out so much better!
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Excellent! Someone commented on one of my posts the other day basically the same thing. But you explained it here perfectly. It makes perfect sense to me now. Big thanks :)
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Thanks for this calculation, and observations. :)
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How can I get some healthy steempower does anybody have anyspare or any tips to help me along xx
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Great post again. I started with 50/50 then did a few post at 100% but now back at 50/50. :)
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Great Post!
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Thank you for the different angle. Its always useful to see things from different angles
If you want t build a great community then you need to encourage the newbies
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Awesome stuff, this spurs me on to play around with these settings - I have left them until this point.
Am trying to work out a strategy that works for a content creator who largely creates content but also interacts with others posts such as this. So influence for me is important but getting a return in exchange for effort is more important as that is what would drive me on to release ever more content on SteemIt (rather than just publish to my SoundCloud or YouTube channels for example).
Will make the 50/50 setting change now and see how it goes.
Muchas Gracias!
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Interesting if your motives are monetary, but for many Steemers, the motivation in 100% Power Up is not money, but influence. For those people, 50-50 makes no sense at all.
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"In this post I will demonstrate why taking a 50/50 option is currently better than receiving 100% in Steem Power."
I will do the same
Thanks for sharing
Happy to learn from you and happy as I reached today 500 followers
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Thank you for this information! I need as much information regarding cryptocurrencies as possible. This was a big help for this site. Thank you!
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Pretty nice.. You explain it better.. Like it..
#redfish community!
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But some of us want 100% in SBD and not 50-50 hehehe... A Bit greedy of us hehehe
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Your analysis is perfect... but I would not suggest the 50/50 option to the minnows otherwise their growth would be considerably slower, or if they want to use the option 50/50 they it would be wise to exchange SBD on poloniex and then reinvest them in steem power with the power up procedure. What do you think?
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I understand the growth. But revenue should not be the first priority for minnows. Steem Power, community involvement, informative articles, and creating a community of active Steemians are the keys to a bigger revenue. I am a minnow, just 7 days from the creation of my Steemit and I don't consider revenue as my target. It's the building repuation in Steemit.
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It's true, you are right, and I agree with you. In fact with growth I meant to increase the reputation, but don't forget to consider that you get an higher reputation when you have more steem power and this is functional if you want to obtain a larger audience, an article written by a steemian with reputation 60 reach more people than one with 35. A personal growth will help the community and you will give your contribute to increase steemit. Anyway this is just my opinion.
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Why would you not suggest it to minnows?
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@digimad read my first reply, anyway I repeat again: it's just my personal opinion
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Great analysis! Take my upvote.
The total payout in USD is higher with the 50/50 option, but don't you think it could be beneficial to still go for a 100% SP payout if your only goal is to increase your voting power?
Or... Maybe it would be better to convert your SBD to STEEM and power up. Or is that just crazy? :-)
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Wow that is great information, changing my settings now...
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Thanks for sharing that and makes this more easy to understand, I'll definitely keep it on 50/50 for now.
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@bitgeek BIG Kudos.... written so it was very easy to understand.
UpVoted & Following now... please consider following me. Thanks Again...
Have a Great Week !!
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Thanks for the detailed information on this.. As a new Steemit member and with no payout yet, it was difficult for me to understand.
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Many thanks. This is useful to learn. However if intention was to convert to SP, I think option 2 is always better.
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Thanks for bringing this to everyones attention. I am still getting used to the different post settings and such.
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Woah! Truly you helped me get rid of this question like which was better and which is going to benefit me the most. Thanks @bitgeek for helping me understand it. Being a minnow( new steemian), now I understand it. Upvoted as it helped me alot and because your post are amazing
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Do you ever think it'll be worth more flexiblility in the future? Would Steem ever adjust this assumption in the code to align more with reality, or is this a nice hedge against what is likely a highly volatile currency?
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Thanks for the clarification 😀
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Hello, thank you for sharing. I have a noob question: if my goal is not $USD profits, but rather long-term influence, is it still better to do 50/50 when SBD market is >$1, or should I stay 100% powerup to generate the most steem power long-term to get wider reach and more curation say in 12-24 months? Cheers!
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This post has been ranked within the top 25 most undervalued posts in the second half of Jun 12. We estimate that this post is undervalued by $88.64 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Jun 12 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
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Thanks for this explanation. I a new here but posts like this help me along my journey understanding this platform. Greetings
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This is so much of an informative post. I've been looking for articles regarding revenue share options. In my case, I would love to recommend the 50/50. The word balance says it all.
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