Now, That 1 SBD Trades Below 1 STEEM, Is It Better To Set My Rewards To 100% Power Up?

in steemit •  7 years ago  (edited)

The short answer: it depends.

The long answer: well, you may still get a higher ROI if you stick to the standard 50/50 rewards model.

Suppose you're getting 10 STU (Standard Token Units) as author share from a post, after we already deducted the 25% for curation (for simplicity).

From that, you get 5 SBD, as the first 50%.

Then you get 5 STU / $5.8 (the current price of STEEM) = 0.86 Steem Power.

Now, if you sell your SBD, you can still get 5 / 1.002= 4.9 STEEM, that you can power up as Steem Power.

Total: 4.9 + 0.86= 5.76 Steem Power.

If you're choosing rewards 100% Steem Power, you get 10 STU / $5.8 = 1.72 Steem Power.

As long as SBD trades above $1 SBD, you will get a better deal at gathering STEEM if you choose your rewards 50/50.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


Dragos Roua


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The good thing about STEEM getting higher though is that people will now also start focusing on getting more curation rewards rather than just author rewards. This will benefit the community as a whole as people would start getting more upvotes.

yeap, good call

Thank you for explaining. I get this question on a daily base from my friends. Now I can tell them for the purpose of easyness:

As long as SBD trades above $1 SBD, you will get a better deal at gathering STEEM if you choose your rewards 50/50.

This is exactly what I was going to point out!

thanks you so much @dragosrous for posting this, i 'd like to know more about curation rewards,even if i view my steem suppply to check them,i still fail to understand them.i look foward to hear from you

steem.supply doesn't show curation rewards, only post and comments rewards. Have a look at the description of rewards here: http://steem.supply/rewards

I'll keep doing 50/50 for now. I rely on people like you to advice on what's the best strategy. I wonder if SBD will ever return to $1.

Everybody is wondering the very same thing, but no one knows if this will ever happen or when. I still keep a few in order to power them up if there will be any pump in their price. Well, looking at your reputation, I don't even think I should be commenting, but this is my honest opinion :)

i was planning to keep SBD to hope for another jump up in SBD price... but now i'm wondering how low SBD could go ??

Well, because it was designed to be pegged to 1$ then even if I hope that it will be much over that value, it is very likely that it will reach it at some point in time. I am holding just a little SBD, the rest I have powered up already :)

In the long long term, when STEEM goes high, I say the answer is yes.

This is likely to get lost, but even if SBD goes below 1 USD, I would still be doing 50/50 and using the convert button (this does have downsides in that you have to wait 3 days though). 50/50 just gives more flexibility than not.

The "Convert" option has been taken out, after the SBD pump. Other than that, yes, 50/50 is more flexible.

yeah and if nothing else use SBD to buy BTC as long as it's trading above $1. Historically BTC had outperformed Steem so as long as that keeps holding true you have that option as well.

If Steem starts to take off then you can always convert from BTC to Steem.

I am so glad to read @dragosroua post.
success is always for @dragosroua.

Well, @cheetah spoted you, so you better stop spamming :)

Thanks for clearing this up. I’m sure a lot of people where wondering about this scenario including myself.

I'll keep 50/50
thank you for sharing ♥

merci bien ça ma vraiment impressionner

I did not think it would fall below 1, as you said now the value of the SP is that it shows

I am thinking I will always go 50:50 from now on. Here's my thinking:
Sure you get a better deal when SBD is less than 1 dollar by choosing to power up 100% option, but it's only a small bit better. If SBD ever goes on a run again you would probably make your money back in spades if you have been taking the 50:50 option and you happen to have made a post before it mooned. Of course you need to keep powering up your SBD on the internal market but that's easy to do.

Thank you for the quick explanation! I was just thinking about that after your previous post.

if you sell your SBD, you can still get 5 / 1.002= 4.9 STEEM
Why Sell your SBD when you can make them grow like rabbits by using Upvoting Bid BOTS

Is there a good video explaining everything going on here. I need the 101 course >.<

I have not search videos. What I have done is follow @dragosroua and read most of what he publishes. The Engineering and Economics aspects of Steemit.com must be read as if you were at the University. Not other easy way.

Llevo rato pensando en cambiar mis SBD por Steem, pero no lo hizo esperando a cambiarlos por mi moneda local, ahora no se si hacerlo, STEEM obviamente seguirá en alza, pero el SBD bajara o subiera? tienen tendencia a la baja, pero sigues siendo la moneda que mas se mueve....mi cabeza estallara 😰 jajaja

Thank you for sharing this. I have been doing this a little over a month and am trying to get a feel for what works best. Posts like this really help someone new to this platform. Much appreciated!

Thanks for sharing!
I'll keep 50/50 :)

I was wondering when someone who was going to make this post. Of course going with full steem power means that in order to access any money you actually have to power down your account too.

I believe there was a fix back in the fall to make Powering Down easier.

It would be great if there was an actual Official FAQ that kept information like what was posted in this article and other questions up-to-date so that people wouldn't need to keep writing articles about it.

so... does anyone know how low SBD could go??

Good idea making this an entire post! I'm sure I'm not the only person who was wondering when I asked yesterday and now it will get more exposure.

Yeah for now it is definitely 50/50 split sounds great !

did a powered up post earlier when it was at the similar ratio doesn't seems to be a good option still

never ever did a power up post will try it soon

sbd price is still different in the system my mind didn't work in this still so can't say

after seeing all the calculations 50 -50 option is right now

Thanks alot for sharing. Exactly what has been on my mind

The next power down is scheduled to happen in 3 days. And there is where I will start buying Up SBD. Nor idea if I will start buying at the Bouncing Point or start buying immediately.

I need to compute the Bidding Upvote BOT factor, but on mere intuition look the right way to go. However, Intuition must be tested with real numbers. And that is what I am about to do.

No sure if I set up 100% Power Up, instead of 50/50, if the formula to get SP is = STU*0.75
But my preliminary calculation is terribly awful against using 100% Power UP. See:

https://airtable.com/shrG4JiRabq56tLqp/tbliCFlGlTDO0EfDF

In the next days I am going to test this numbers and check if what I am thinking is correct or my brain is totally a mess, in which case I hope some of you help me out with this calculation.

In this Airtable, the Column BID represents what a Post will make and what happen if a used a Good Upvoting BOT

At the Lower of Table, use Average, rather than SUM, in order to get an average view of the range 5 to 20 SBD Bets.