UNDERSTANDING POST PAYOUTS - A VIDEO EXPLANATION FROM PAPA-PEPPER
Are post payouts a little confusing at times? - YES
Yesterday I made a post about why you should NOT power up 100% to gain the maximum about of Steem Power per post. It seems that this was news to a lot of people. Since there were a lot of questions about it, I thought it would be best for me to make a video explaining some of it.
UNDERSTANDING CURRENT POST PAYOUTS
You may see that I inserted the word "current" in the title there. This is because post payouts fluctuate. Basically, there are three options for post payouts that the authors can select.
- 50/50 Payout (default)
- 100% Power Up
- Decline Payout
The 50/50 Payout setting pays out half of the post in Steem Power and the other half in STEEM, SBD, or a combination of both.
The 100% Power Up option pays out the entire portion in Steem Power.
The Decline Payout option prevents the author from receiving rewards.
Since the payout system takes into account the fluctuating value of STEEM, adjustments are made in the amount of STEEM and Steem Power that posts pay out. However, SBD (Steem Dollars) are treated by the system as if they were $1 USD each at all times. Currently SBD is valued at $2.00 USD even on Bittrex.
This means that if a post was going to pay the author $20, and they selected the 50/50 Payout option, half of the post would be paid out at 10 SBD. Those 10 SBD could then be traded for $20 USD, which means that the post would have actually paid out at $30 to the author, not $20.... For those trying to accumulate Steem Power, it would be better to select the 50/50 Payout, then trade the SBD for STEEM and power the STEEM up manually, since you would be getting more.
I go over a real life example in my post from yesterday if you are interested.
It can be a little confusing, so I do my best to cover more in the video to help you understand. Also, if the value of SBD dropped below 1 USD, then the 100% Power Up option would be better.
Until next time…
Don’t waste your time online, invest it with steemit.com
Bro you are a mentor to me and was one of the 1st people I followed. The jewels you drop on us on weekly/daily basis are invaluable for a newbie like me. Thank you for the effort you put into your post. On the grind!
I'd like to say the same, thanks for this bomb of knowledge you just dropped, I followed and re-steemed on my page since I'm new and I promote a lot of new people to Steem from Instagram and Facebook so this will help them out also so I want to say thanks again - Unil we Steem again, LykenCrypto- ✌
I am glad to hear it. I try to help others with what I can, glad that you like it and find it helpful.
Thank you brother!
Thanks for the clarity. #steemhelp posts are always right up my alley. Couldn't help but notice you were in a hotel...
Left the family at 2:30am yesterday to go to work, hoping to be home by midnight tonight... Hotel last night.
Where do you work?
thanks @papa-pepper for enlightening me about the way the post payout goes currently, it has really been helpful
In this example, it becomes the difference between getting $20 worth of Steem Power for a $20 author rewards portion of the post payout and getting $30 worth of Steem Power.
Always glad to help!
thanks @papa-pepper for sharing and acknowledging my comment. i'm honored
I try to acknowledge the comments, but there are so many some days! Thanks!
my pleasure sire
I think the most important thing to keep in mind about post payouts (and the specific amounts being payed) is that your earnings are deceptive in the sense they don't factor in the growth of the value of STEEM! Imagine you were paid $0.10 worth of bitcoin per hour in 2010 everyone would tell you it's obviously a waste of time to make that amount of money, and then a few years later you're a millionaire because it's value had increased. In the same kind of interface it would tell you a post had earned $0.10 when in reality it had earned much more. This is especially important for new users to keep in mind before getting discouraged at the amounts they are gaining, it may not look like much now but just keep going and eventually it could be much higher than you expect.
Yes absolutely! Momentum and keep going forward is what makes the difference in the long run...
Thank you for that, I was asking myself and the community the question that you answered in your post. Will link your post there. https://steemit.com/steemit/@flurgx/discrepancy-about-steemit-authors-payout-question-need-your-help
So it's better to go 50/50 yes
Yes this does work. Run to the exchanges and buy Steem with your overvalued SBDs.
Lol, it sure does work!
One important thing to remenber is that, the pendulum swings both ways. You could wake up tomorrow and find SBD trading at .80 cents. Then you'll have to change your strategy.
Absolutely, I mentioned that.
Gotta watch it again.
It was the last sentence of my post actually...
My bad.
Thanks papa, you've cleared things up again!
This is precisely what I found out yesterday the hard way!
But thanks for your great article!
You're welcome @skytrex!
Good shit Thx Papa!
Thank you for the breakdown Papa.
Please Steemians remember, you are liable for taxes on this as well as profits made during trades from one coin to another. This has become a major issue for my brother and I as we trade a lot and do Steemit. You should be consulting a tax professional regarding all of your gains because it can get confusing & add up fast.
Oh no tax man showed up! Run =)
Unfortunately there is nothing you can do about it right now. Until the laws are changed and/or alt coins become legalized currency, like BTC in Japan, that Tax man will be in your pocket.
trade under Offshore LLC covert to USD, LLC sends check to you, cash ..Happy ... no IRS ?
Actually looking into this.
or sends gold, sell for cash, and if you pay for things in cash no money trail ! NO irs unless selling over certain amounts ... and yes, viable, being done everyday by people and corps
Under the strictest sense of the law, United States citizen owes taxes on anything sold or traded. If traded we owe taxes on the value of items exchanged.
That is the strictest sense of the law though. No one really enforced it to the point that it has disappeared from the minds of most people. Ask your tax accountant about it.
@ 56 yrs old .. .gov been stealing my money all my life, LAW ? who cares, done getting robbed. Paying like ? 50-80% tax on every $ made ... time for everyone to just NOT do this ..
Not saying it is fair but it is the world we live in. I am reading an investment/biography book and the author calls money we work for "50% money" because by the time we have any left, it is half of what we started with (after income tax and the various sales taxes regular citizens pay).
Very true.
50-80 %
Nevada just made a new law preventing taxes on bitcoin.
Federal law still applies.
Sucks.
It does, so people have to know about it.
You're a good man.