MinnowBooster : Insights on the MB Vote Value Calculation!
Here are some insights on the MB Vote Value Calculation...
Hey folks, @Steembusiness here with some details on the secret Minnowbooster Formula or how I like to call it, the Upgoat-Formula. It's the secret ingredient that guarantees every single one of you profitable upvotes on a daily basis and as we are quite sure that all of you might be interested into this, we would like to share some insight on it with you today.
Let's Start With The Basics
As most of you might know, the curation rewards actually increase during the first 30 minutes of a post. They start at 0% at the very first second and reach their maximum after 30 minutes at 25%. This being said, the author rewards decrease from 100% to 75% respectively over the same amount of time as we tried to illustrate below:
As this function is built-in into the Steem blockchain, it can't be ignored, for that reason our Formula takes it into account respectively. Therefore, just as shown below, the actual upvote value increases over time based on the exact moment the vote actually gets placed. This way it's guaranteed that the author of the post will always receive a profitable upvote of the same value instead of losing money through increasing curation rewards.
But That's Not Everything!
In case the formula would only include the above, Minnowbooster couldn't really guarantee you a profitable upvote though as the most important aspect of the whole equation would be left out - The current market prices of Steem and SBD.
Now it's honestly getting slightly complicated as the vote values shown on Steemit are actually not real $ values after all, but so called STU's. "STU" stands for Steem Token Unit and is used to refer to the post rewards shown on the post which consists of multiple values. In order to keep it simple we won't go too much into the details but rather use the following example to illustrate how the steem blockchain calculates a Payout:
Let's now take it one step further and calculate the Post Payout in USD based on a realistic Minnowbooster Upvote Scenario. For the following illustration we assume that a User sent 10 SBD after 30+ minutes and therefore like above receives 75% of the total Post Payout:
So you may see that by including the value of SBD into the formula, Minnowbooster won't cast any votes, which will end up with a loss for the buyer. Regardless whether SBD is currently valued at 1, 3 or 5$, Minnowbooster will keep its promise of profitable upvotes!
Our Final Remarks
We hope that this short excursion behind the scenes of Minnowbooster made it possible for you to understand the complexity of what's happening in the background after someone buys a Minnowbooster upvote. Nevertheless, in case there are any open questions left, please don't hesitate to reach out to us via a comment below or via Discord.
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 We are always looking to improve @minnowbooster and try to keep you up-to-date whenever something changes. If you have any suggestions about what we should change or add to @minnowbooster, then please drop by and let us know! |
@thecryptodrive (witness), @cryptomancer and @reggaemuffin (witness)
Versão em Português / Portuguese Version
This is a great explanation of your vote value calculation. @energyaddict22 recently did a great post on strategies for people at different levels:
Steemit Strategies - Understanding Curation Rewards
He got my attention with this statement:
Thank you for this info @minnowbooster. It helps to understand your strategy.
Thanks for the post. It makes things much clearer.
I think it's important to point out that the roughly 18% profit from using SBD to upgoat a post is an instantaneous profit (well, 1 week delayed), but the lease market and delegation numbers are annual percentage yields.
So content creators are probably much better off upgoating their posts than delegating, but the reverse for lurkers.
The explanation is quite good but there's still something I feel lacking in it. Either way, the best thing to do is to get as much steem power as possible to secure a good amount of rewards.
What would you say does it lack? We are happy to add more details to this already complicated process.
The problem is different @reggaemuffin : there are very large variations of SBD and Steem (in USD) in a few days, and when the money goes back into our wallet it takes too long! If you increased the vote to 25 => 27 STU for 10 SBD (as in the example posted) I would be tempted right now to use minnowbooster always!
I would like to know more about what happens as the price of STEEM fluctuates after the vote. There's a very strange currency futures bet involved in buying MB votes and I'm having difficulty characterizing it.
STEEM price and SBD price changes affect how much you earn. STEEM price changes change the amount of STU paid out. And SBD price changes affect your $ payout when you receive the SBD.
We give profits in each vote and basically you get the same STEEM and SBD price fluctuations, but locked in for 7 days.
I'm reasonably convinced that there's more exposure to the price of USD while in a post than in just holding STEEM or SBD. (Not sure if that's fundamental or a side effect of the broken SBD peg.) But I'm aware there's nothing Minnowbooster can do about that, I was just hoping it might be a question you already knew the answer to.
I will keep plugging away at the math elsewhere.
Hmmm, not sure. 50% of the investmen is in STEEM anyway, so that does not fluctuate much. But the 50% SBD fluctuate heavily.
I mean the formula is pretty clear, just put it into a spreadsheet, plot a few values and compare to just holding steem or sbd ;)
Thanks a lot for your efforts. And thanks for pushing that!
I would love to see more minnows here with a higher reputation and more rewards.
Upvoted and resteemed and you got a new follower
@reggaemuffin
Holy sh*t - THANKS for that premium upvote!!! :-)
Exactly what I am looking for. Thank you for this explanation. I resteem too.
Thanks for posting
A Great Service !!
Good pos l'm sheer pos yu
resteem done ☺👌