Let's face it - when we get a gift, we can't help wondering how much it's really worth 😊 For this reason, I decided to write a post to explain to Steemit newbies how much money is a Steemit post really worth to the author, based on the dollar value displayed next to the post. Example:
Newbies might think that the above post is worth 74.70 USD to the author. More sophisticated users will argue that roughly ¼ of the post value goes to curators, resulting in an adjusted author value of about 56 USD.
Is this right? Not really...in fact, based on current market conditions, the post is worth much more!
I see a more sophisticated user coming along now, suggesting that the post is worth way more than 56 USD...Based on the screenshot below (SBD/USD exchange rate), the guy suggests that the actual earning is 74.7 X 8.85 X 0.75= 500 USD. Wow!
Ufortunately, this guy is also wrong. The post is worth a bit less. 😊
Enter the smartest guy in the block. He argues that the actual value is related to the STEEM/USD exchange rate (see below). Yes, but...how?
Eventually, he gives up.
Ok, let me give you a simple explanation and recipe to estimate the USD value of a post to its author.
To make this somewhat fun, let's pretend that we work in a mine, and the post reward is a miner's salary. The salary amount results from the conversation (and misunderstandings) between the mine's boss, and his dumb accountant...
First, the Boss decides (based on his own mysterious criteria) that the post is worth $74.70 (which is the number displayed at the end of the post). Next, he instructs the accountant to first deduct the money due to curators, and then pay the balance to the author, half in SBD, and half in SP based on STEEM price…
It sounds easy, right?
Unfortunately, our dumb accountant thinks that 1SBD is worth 1 USD, always. Based on this assumption, the accountant first deducts 25% out of $74.70, which makes it $56. Then, based on his boss' instructions he divides $56 by 2, which yields $28. Finally, as he believes on one hand that 1 SBD = 1 USD, but on the other hand STEEM price does fluctuate, he ends up paying out a total of 28 SBD + roughly 8.8 SP, having checked that 1 STEEM is currently worth about 3.18 USD. On steemstats.com you can see “the accountant's logic” in action:
Since in reality the USD value of 1 SBD is currently waaay higher than 1, our poor accountant is screwing it up badly, for two reasons:
- He's paying you much more than he thinks,
- He's not splitting evenly the payment between the SBD and the SP share…
The first point is kind of obvious: 28 SBD + 8.8 SP at current exchange rates is worth about 275 USD.
To understand the second point, just think that currently 1 SBD is worth much more than 1 STEEM (roughly 3 times as much), then it's obvious that if you get more SBD than STEEM, the split can't be even!!!
Summary:
Based on market conditions used in this example, the true dollar value for a post's author is roughly 3.7 times the value displayed at the end of the post 😊
Enjoy!
Screenshots from http://www.steemdollar.com/ and steemstats.com. Image from pixabay.com
Thank you for this information. it really clears a lot of doubts about how much we are really getting when we invest our time in this platform. I want to quit my job soon with the help of steemit platform.
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That's a very big decision... be careful.
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i thought he was saying a joke
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So as long as the value of SBD is higher than Steem, it makes sense to take a 50/50 split while upvoting rather than powering up 100%
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As long as 1 SBD is worth more than 1 USD, the 50/50 option is more profitable.
The STEEM/SBD ratio is not relevant for this case.
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Right.
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As long as 1 sbd is worth more than 1 dollar.
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Hey man, you write really well, you have a very nice way of explaining stuff in simplistic manner. I would have loved a post like this when i joined a month ago, and understood less than nothing :)
So thanks man, please keep making nice explanations like these
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nice mate,, u got new fan
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Hi @claudiop63, So, I'm not alone in thinking that Steemit payout criteria is mysterious and unMathematical? :D
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Well, the trickiest part is in how you get to the 74.7 figure displayed next to the post... I never bothered to go through the code, but one could do that and then understand :-)
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Someone approached me with a payment, on comment that he was unable to understand at all:
....best part: I could not explain it to him. :D
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75% of what it shows, goes to the one who wrote the text.
25% goes to those who voted the text.
That 75% is then divided into 4, with one part going to the wallet as steem power, and three parts as steem dollars.
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This is incorrect.
The author's cut is divided by 2 not 4 ( 50 / 50 )
One half ( of its US$ value ) is paid in sp, the other in sbd.
On top of that, some witnesses publish a 'bias' which means instead of getting the US$ quote for 1.000 STEEM to calculate the payouts, they calculate based on for example 1.2 STEEM ( 20 % bias ) and calculate your SBD payouts accordingly.
This will effectively give you more SBD than were shown in the 'payout'.
The idea is to stabilize the price by minting more coins to meet the demand.
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"One half ( of its US$ value ) is paid in sp, the other in sbd."
The current value of STEEM is about a third of SBD. I always get 3/4s of the number in SBD and 1/4th SP.
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That is coincidence. If you select 50 / 50, it is 50 / 50.
However, my explanation above doesn't make much sense, now that I have read it again ...
If the payout shows 10 $ after taking off the curator's cut, then you will get:
5 US $ worth of SP
5 SBD (+some extra because some witnesses publish a 'biased' feed at the moment)
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What's here not to understand? The curration cut here is below 25%, which is the maximum a curration cut can be. Am I missing something?
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Great post :)
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Good information. I am a newbee myself. Still got to understand more about it.
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Correct once what you said that ,,, I also wonder ya ,,, my payment was then $ 15 but the time of entry into my account only $ 9 3 for SP 6 for Sbd the rest either running where.? While the $ 2 curator is there, but my money is $ 4 longer go where ..?
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75% of what it shows, goes to the one who wrote the text.
25% goes to those who voted the text.
That 75% is then divided into 4, with one part going to the wallet as steem power, and three parts as steem dollars.
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So yesterday I got 15 dollars in love for me 9 dollars while for the curator 2 dollars was made. Then 4 more dollars got me where ...? If you say 75% ... And why not just log in to my account ...? That's one of my friend's problems ..
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From 15, 2 were given as curation, 9 as SBD reward and 4 as STEEM Power. If you go to the wallet you will see them. If not, go to Rewards.
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my friend 9 it is the number of both on the four again it don't know where.?
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The post value can fluctuate a lot during the seven days before payment, depending on STEEM price but also on how many "good" new posts are published and voted... Out of a $15 displayed payment, you should expect roughly 3.75 to go to curators. The rest is fluctuations.
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3.75 is it for what.? For steem or or for Sbd only or even for both...
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It is 25% of 15. So it's the curators' cut.
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The piece for the curator was already showing $ 2 but the problem is 9 have entered 4 again do not know where to go.?
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Wauhhh...at least I have some light. I just see payout then curators for some steem dollars without knowing what they are meaning.
I'm still a new steemians but believe that slowly i'll be on the truck
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Thanks for this, answers all the question i have regarding payouts!
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Thank you for the post. I really now can calculate my works. Thank you @claudiop63 and happy holiday
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Thanks. Same to you.
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Great workings. I'm pretty new to Steem so this is valuable information. Although it does raise more questions- why would they misrepresents earnings/value?
The incentive of earning more should promote agents to produce content, increasing market share.
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They don't misrepresent earnings if you see the number as steem dollar instead of us dollar. At this point, they really need a different symbol for it.
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It's not deliberate misrepresentation....SBD was engineered to be pegged to the USD dollar value, bit...for a number of reasons, this is not happening at the moment.
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Because the earnings of curation or author is subject to your own choice. Either you want to power up 100% steem/ 50%-50% based on last payment: sbd value equals to steem value. And decline payments 0 sbd/steem.
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Really helpful post! As a newbie I didnt really understand what the dollar values mean. Happy to know that the few cents I get for posts are worth more haha
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Muy buena la información, recién comencé ayer en steem y todavía me falta mucho por aprender y por aportar a la comunidad steem
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Wow, thats an awesome way to explain something..umm complicated. And for your knowledge I completely understood the concept. Yeah you guessed it right I am totally new to steemit. Anyway thanks for the post, Keep doing the good work.
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Hi Happy Christmas , Nice information about steemit. I like your post and I follow your upcoming articles.
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I did thought that the amount displayed is due to the authors only. But i was wrong. And im happy it is also given to curators.
But nevertheless im happy im in steemit.
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The amount displayed AFTER the post pays out is the author's share.
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Thanks Claudio,, Super informative. Much appreciated.
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Oh this post was really helpful. I am for two months here, but could never figure out how they calculate it. I keep guessing what my post is worth at the end of the day, but it comes always less than what I guessed.
Thank you for the good explanation :)
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Very informative and great post. Thanks for sharing the info. about Steemit @claudiop63
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Being a newbie here, this is truly an eye opener.
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Does it reward people to powerup 100% from the start then I wonder?
Not sure I'm any clearer on this after reading and feel from the comments that I ought to be :-D haha!
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Power up is used to increase your Steem Power, which affects the strength of your vote. Meaning, it's useful for curation. Currently, you make much less from 100% than what you would make with 50/50.
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Thanks for that info.
Does powering up benefit steemit?
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yes
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Fab. I’ll do it that way then. 50/50 then power up.
Cheers!
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I suggest you select the 50%/50% rewards option, and THEN decide if you want to convert all into STEEM and power up ;-)
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I tend to power it all up but maybe you’re right.
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Absolutely brilliant post. Educated me a lot! I always wondered how it got worked out.
Upvoted and Resteemed
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Thank you and to be honest, this is (even for someone like me, who invested quite a lot into cryptos) s-l-i-g-h-t-l-y complicated. Ok... I´m still not getting it, but I finally decided to buy some Steem as it went down to 20k sat today and converted it into SP. Now I just continue to use steemit as I normally would and wait for enormous amounts of $ flooding in soon! ;))
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nice work hopefully we make same you for one post
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I have a different way for calculating it.
Let's have a nice round number, like 2 SBD for a post. If you choose 50%/50% you will get about half of that in SBD after a week (1 SBD) and a sixth of that in SP (0.33 SP).
If I use the current value where 1 SBD = 10 USD, then if you sell what you made from a 2 SBD post, you made 10 dollars from the SBD and 3.3 dollars from the SP. 13.3 USD in total.
You obviously need to remove whatever fees the conversion will cost. If you are lucky, it's 1% for converting it to another crypto (let's say Litecoin, as Bitcoin has way too high fees). You are down to 13.1 USD.
If you want to bank them in a physical bank, there is about 3$ fee for the transfer, so you are down to 10.1 USD.
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At least I have some light now about it....
https://steemit.com/poet/@mhizblessing/to-a-new-tomorrow hi guys pls visit my blog... Thanks
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nice post
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hmm i reading all youre post very good post and explination thx a lot for this article
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While I do agree with most of this post, one thing I'd like to add is that might want to convert some SBD to Litecoin via blocktrades. I think that it's an easy way to invest cheaply in Litecoin, which along with Ripple and Ether, will go up a lot next year (in my opinion).
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For a newbie like me it is not too much worth calculating since I can only talk about 4 SBD/post at its maximum :) I all use it to power up. Bu at least I learned to power up form the market.
This infromation is good to know.
Thank you.
FD.
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This is a very good post
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Finally I read a full article about steemit! Its not that hard to understand
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finally I can find out the exact division of the results @claudiop63
you are amazing, per posting yield above $ 100, and increase by current SBD price?
Hopefully I can be like you.
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Great content my friend, i hope this was helpful for all new user who might be wondering how this works. i'm currently using http://steem.supply/ to check on my final payment and its always accurate
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Thanks, this is very helpful. It took me a couple of weeks to figure this out on my own.
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Your post is very informative and very useful, Yes there is a lot of missunderstanding about the real value of the platform. Happy New Year!!
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This is my first day at this, so it's really helpful, thank you :)
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Hello. I liked your post, keep it up. Good luck to you and have a nice day :)
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