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RE: Steemit is hiring!
The liquid payouts are based on the amount of SBD tokens in existence compared to the STEEM marketcap.
- When the number of SBD tokens is < 2% of the STEEM marketcap, then the liquid payout is
100% SBD / 0% STEEM. - When the number of SBD tokens is between 2% and 5% of the STEEM marketcap, then the liquid payout changes linearly from
100% SBD / 0% STEEMto100% STEEM / 0% SBD. - When the number of SBD tokens is above 5% of the STEEM marketcap, then the liquid payout is
100% STEEM / 0% SBD.
Thanks for this explanation. I have also wondered why sometimes we receive rewards in sbd&sp, and at times steem,sbd and sp.cheers to steemit
Well just to clarify, the steem/SBD youre getting is actually printed up or minted via (delegated) Proof of stake, it is inflation, controlled consensus based inflation where every year just a few percent of steem and sbd are generated, and its all based on the reward pool of around 700,000+ Steem a week or around 27 million this year and every year the inflation percentage goes down
So just remember, Steem is printed up kinda like how the central banks print up fiat paper money EXCEPT steem cannot just be printed up whenever anyone wants, you must first of all own stake and then you ONLY get as much allocation of the reward pool as you can afford to buy ;) So you just basically get a certain amount of money based on how much Steempower you have... in basic simple terms.... the more SP you have the more money you can allocate, because everyday theres new steem being created by witness nodes yes the witnesses who run the top 20 servers are the closest thing to the Bitcoins POW Mining Farms that actually CREATE the new bitcoin. For us new steem is generated via witnesses to then be allocated to people via votes that pay out from our reward pool... this pool of money is just generated and is just given to whoever the stake owners(SP) give it to, whether thats themselves with a self vote or someone else, or they can sell their vote to get liquid from their SP immeidtaly or lease it on the Market for 25% interest I believe meaning, and dont quote me but if you have 10,000SP you can make 2,500 steem a year from leasing your SP for liquid steem. which you can then power up and you would then have 12500 SP to lease and youd make even more and it would snowball until you reach a limit because there is a limit of around a few million SP that you can find to lease, only people like blocktrades and others can do that and his spots are all taken, youud have to have a good relationship with a big whale who doesnt mind letting you use his SP when he or she could just s easily make that money for themselves, from what i hear having that much SP gets you made so much more of the reward pool, it is a rare thing to have, its powerful to be able to generate this much money of a website :D its insane when you step back from this Borg matrix and realize how many of us have been actually either-living off or making fortunes off of a WEBSITE :D Its magic internet money for sure!
tldr; steem is printed up digitally by witnesses via consensus based inflation, set at a declining inflation rate that shrinks every year, and the price is held up by the free market on exchanges etc.
I think @timcliff 's explanation was a little more than you asked for, :D I think he was just showing off with a little known fact :D and I am happy he did because wow i didnt know we had that mechanism but I knew we had to have something to control the price of SBD or limit its supply etc, i am just wondering if this means that if enough sbd is produced, no one would get any liquid payouts just Sp and theyd have to power down to get liquid? is that true? but has that ever happened no right? and how could that even hap[en? what would cause the number of SBD tokens to grow that large that they are above 5% of the steem marketcap? Would that be from price of sbd going up? or down? lol i know when it goes down UNDER $1 theres a mechanism to push it backup to $1 but from what Ive heard, not much of a mechanism to push it back to $1 if it starts to be pushed ABOVE $1 :) I am seeing @freedom is able to now push sbd back to $1 soon with his nearly 800,000 SBD accumulated ready to sell off to push sbd down :)