Steem Blockchain: STU, Reputation, Author/Curator Ratio, etc.- Steemit Crypto Academy- [S4W7]- Homework Post for @sapwood

huzaifanaveed1 (75)Beginner[4,5,6]in SteemitCryptoAcademy • 3 years ago (edited)

Hello everyone how're you all? We're in week 7 of CryptoAcademy and this week we learned about the Steem Blockchain by professor @sapwood. This will be my assignment post.

Q1. What is STU? What is the break-up of STU? Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout? (Screenshot required)

Imagine you get a vote on your post on steemit and you're waiting for a payout of that post but you don't know the currency you'll be getting. Would it be steem, SBD, or USD? On steemit whenever there is a post payout, it is received in STU which stands for Steem Token Unit. Even though it has a Dollar ($) symbol on it but in reality, it is a combination of SBDs, SP, and Steem depending on the Debt ratio.

steemworld

Break Up of STU

The payout of the post is divided in an equal 50-50 amount between the author and the Curator.

Author Rewards

The Author rewards depend upon the configuration that the author has chosen. There are three different ways that the author can choose between:

100% SP

This means that from the 50% share of the post payout, the author has decided to take it wholly in steem power.

50% SBD/50%

The author will be getting 50% of the post-payout STU in SBD and 50% in SP.

Decline Payout

The author has decided not to take any rewards.

Curator Rewards

This reward is always in SP. The 50% of the Post Payout STU will be divided amongst the curators

My Last Post Payout

steemit

post payout = $54.29
Author Rewards = $27.15
Curators Rewards = $27.14

Author Rewards

Author rewards that account for $27.15 will be divided into 50% SBD/ 50% SP.

^{Note: The author reward was in SBD + SP and not SBD, Steem, and SP because of the SBD print rate. The SBD print rate currently is 100%}

steemdb

^{The SBD print rate is 100% for debt ratio upto 9%. If the Debt Ratio is more than 9% and below 10%, the payout of the post would be in SBD, Steem, and SP.

Debt Ratio}

SBDs = 27.15/2 = 13.575 SBDs

SP = 27.15/2 = 13.575 SP

This 13.575 is USD worth of steem which is given to us as steem power. But to get the actual SP that we got from this payout we would need to use the Feed price of steem at that time of this payout.

The feed price of steem at the time of this payout was $0.562

steemscan

So;

SP = 13.575/0.562 = 24.117 SP

Curators Rewards

The curators will get the 50% of STU which will always be in SP.

27.14/0.562 = 48.29 SP

Q2. Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?

The Raw Reputation of my Steem account was checked from steemd.com

steemd.com

Raw Reputation = 55,150,369,743,024

To get the reputation we will use a formula.

Reputation = (Log10(Raw Reputation)-9)*9) + 25

Reputation = (Log10(55,150,369,743,024)-9)*9) + 25

(13.74154 -9) *9) +25
4.741 * 9 + 25
67.674

steemworld.org

The reputation of my account was cross-checked from steemworld.org and it matches with the raw reputation.

Q3. What percentage(of the Post Payout) was generated as liquid rewards(SBD) from your last Post in terms of USD equivalent? Explain how the rise of SBD has shifted the supply dynamics? As per your last post payout calculate the ratio of Author: Curator Reward in terms of USD equivalent?

The post payout I used in question 1 is my most recent payout, so I'll be using that in this question as well

post payout = $54.29
Author Rewards = $27.15
Curators Rewards = $27.14

Liquid Rewards in terms of USD equivalent

Author SBD = 13.575

at the time of this post payout SBD/USD was;

1 SBD = $7.2

CMC

So;

13.575 x 7.2 = $97.74

Author SP = 24.117

at the time of this post payout STEEM/USD was;

1 Steem = $0.58

So;

24.117 x 0.58 = $13.98

Total Author Rewards (in USD) = $97.74 + $13.98 = $111.72

Curators Rewards

$27.14

SP = 48.29

at the time of this post payout STEEM/USD was;

1 Steem = $0.58

So;

48.29 x 0.58 = $28.00

Total Rewards of this Post in USD (Author + Curators)

111.72 + 28 = $139.72

Percentage of Liquid Rewards(SBDs) Equivalent to USD

Total Rewards (in USD) = $139.72

Percentage of Liquid Rewards (SBDs) = 97.74/139.72 = 69.95%

A total percentage of 69.95% was generated as liquid rewards from this post payout.

Supply Dynamics and Its Relation to the Rise in SBD

As we learned in the lecture by the professor that in Steem Blockchain the Authors and the curators are rewarded (50% each) in which 25% SP and 25% SBD are rewarded to the Author whereas 50% SP to Curators, from the 65% of the reward pool. On Steem, 1 SBD is considered as 1 USD but in the external markets, this is not the case as we can see from today's example as well, that SBD is somewhat equal to 7 USD. SBD has broken the Peg of 1 SBD = 1 USD and due to that, we noticed in the above example that instead of the 25% liquid rewards, the Author is actually earning 69.95% liquid rewards.

With an enormous reward like this, the dynamics of the steem demand/supply have been changed. The supply Dynamics have significantly increased due to the rise of SBD.

Author : Curator (in USD)

Taking the example of the above post payout:
(All the values below will be in USD)

Post Payout = $139.72
Author Rewards = $111.72
Curator Rewards = $28

Author's Reward Percentage = ($111.72/$139.72) x 100

= 79.995% ≈ 80%

Curators' Reward Percentage = ($28/$139.72) x 100

= 20%

Ratio (Author : Curator) = 80 : 20

Q4. Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?

#Club5050

A recent initiative by the Steemit team where the users are asked to power up At least half (or more) of their liquid rewards (SBD)

Let's understand why is this Initiative important for the Steem Blockchain.

The example given above in Q3 shows that due to the rise of SBD, the Author and Curator Reward Ratio is enormously imbalanced with the author taking 80% of the rewards whereas the Curator receives only the remaining 20%

The rise of SBD to USD has increased the Supply of steem, whereas the demand remains constant. Due to the shift in this Supply/demand dynamics, the valuation of steem has been drastically affected.

Now, if we were to follow the #club5050 initiative, in which it states that we should power up at least half of our liquid rewards, it would increase the demand for steem, resulting in a balanced system.

Lets take an example from my previous payout:

Total SBD = 13.575

50% of 13.575 = 6.787

SBD/USD = 6.787 x $7.2 = $48.87

% of SBD = $48.87/$139.72 = 34.9%

From 69.95% to 34.9% the liquid rewards were halved and they were powered up.

By this initiative, the ratio is being maintained which had been imbalanced hugely (80: 20) by powering up 50% of the liquid SBD I received 34.9% reward which is still more than the allocated 25% from the reward pool. So it is still a win-win situation.

I have actively been a part of club5050 since its start and intend on being its supporter.

Q5. Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples?

Let's explain it by taking examples of three users, with one being myself, one with a reputation lower than mine, and one with a reputation higher than mine.

a) @huzaifanaveed1

steemworld

b) allbert

steemworld

c) Steemcurator02

steemworld

Now we can have a couple of scenarios taking these three accounts into consideration.

Steemcurator02 (54) upvotes huzaifanaveed1 (67) then my post payout, as well as reputation, will increase respectively.

allbert (70) upvotes huzaifanaveed1 (67) then my post payout, as well as reputation, will increase. It's because allbert has significantly more reputation than huzaifanaveed1

allbert (70) downvotes huzaifanaveed1 (67) then my reputation, as well as post payout, will decrease corresponding to allbert's downvote weightage as well as SP.

Steemcurator02 (54) downvotes huzaifanaveed1 (67) it wouldn't affect my reputation at all but it would decrease my post payout. This happens because I have more reputation than Steemcurator02.

CONCLUSION

This topic, I'd say, was the need of the hour as many users including me had lots of confusion regarding club5050 as well as technicalities associated with reputation. I was aware of a lot of things before this lecture such as what does STU stands for, SBD print rate, and the debt ratio. Thank you Professor @sapwood for this lecture. I had a good time making this post, hope you'll have a good read as well
Thank you.

Regards,
@huzaifanaveed