Steem.Supply Update: Rewards Algorithm Rewrite, Major Cleanup, Version Bump
Following my recent efforts to understand how the rewards allocation works out in Steemit, I think I came to a conclusion, so I updated the rewards calculation algorithm in steem.supply.
On a side note, steem.supply has been on an unusually high load during the last few days (which led me to the cleanup I will talk about later) and also some of the content nodes that I'm relying upon are experiencing very high loads. So please try again later if the page doesn't work for you right now. My content node is still under making.
How The Rewards Are (Actually) Calculated In Steemit:
First of all, thanks to @geekorner and @penguinpablo who helped me during my other post.
Now, let's see how this actually works.
The main confusion point is the "$" displayed by default near the rewards by Steemit (and busy, and eSteem). This "$" is not a USD. It has nothing to do with it. It's also not a SBD. So, what is it? It's what I'l call from now on a "Steem Token Unit", or STU. This is different from SBD and STEEM as currencies, and it's actually the expression of the underlying value storage in the STEEM blockchain, which goes under the name vests.
So, the potential reward you see near your posts is actually expressed in STU.
Example: you see near your post $100. In order to understand how much you will get, we will talk form now on in STU whenever we refer to the numbers the Steemit UI is showing. So you actually see near your post 100 STU.
Out of this, you give away 25% from your STU to curators.
You remain with 75 STU.
This amount is split 50 / 50, with the following algorithm:
- the first half is given in SBD, in the exact amount shown by division. In our case, half of 75 is 37.5. So you get half of your rewards as 37.5 SBD
- the second half is given in Steem Power, at the current feed price (the internal Steemit price for STEEM) in USD. So you get $37.5 worth of Steem Power. If the current feed price of STEEM is, let's say $6, you get $37.5 / $6 = 6.25 Steem Power.
Please note the difference: you get SBD directly as half of your rewards, but you get your Steem Power at the current market price of STEEM, not in absolute numbers.
You get half as SBD, and half as usd equivalent value expressed in SP, at the current price of SP in USD.
The end result for something that displays 100 STU near your post:
- 37.5 SBD
- 6.25 Steem Power
Let's see how much this means in fiat at the following prices: STEEM = $6, SBD = $8.
- 37.5 SBD x 8 = $300
- 6.25 Steem Power x 6 = $37.5.
So $100 displayed rewards, are actually equal = $337.5 real USD.
I tested this algorithm on a few posts, implemented it in steem.supply so hopefully from now on your rewards will be correctly calculated. Please be aware that the former algorithms often resulted in higher payouts than real. From now on, this shouldn't happen. If you notice something unusual, please let me know.
Major Cleanup
I bumped the beta version to 0.3.0 and I got rid of any other unnecessary baggage. JSECoin code has been removed, it was a nice experiment for a while, but steem.supply is now too big to run experiments on it. What started as a one page Steemit learning exercise turned into a tool that gets used by more than 1,000 people every day, and it's even used as evidence in acrimonious disputes over the reward pool. So from now on will keep it as clean and as accurate as possible.
As always, looking forward to your criticism, suggestions and feedback.
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.
https://steemit.com/~witnesses
If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform):
Everything is fine and very nicely explained dear @dragosroua but why in steem.supply when you show the potential payout, you certainly put the wrong computation of SP. Please correct it, I am also attaching the screenshot here.
Please check the screenshot and in my case the potential payout is 54.16 SBD+ 31.97 SP. While 54.16 is the correct one but 31.97 SP is the wrong one and the correct one is 10.697 SP. Because I added the figueres of SP individually for each post and comment which is given in details at the the bottom of the profile in steem.supply and after adding it, the total figure is not matching with the potential payout figure of SP.
I hope you pay attention to the error and correct it at earliest. Thank you and Have a great day.
Thanks for the heads up, I'll look into it.
Thank you for paying attention to the issue.
This just blew my mind. I remember reading another post where someone says split you payout to 50/50 is SBD is over $1 and 100% if it’s under $1
That was me, yeah. Still true :P
Have you corrected the rewards for 30 minutes timeline there.
come again?
Is it possible to switch payouts for posts to be 100% SBD somehow? Wouldn't that result in a higher USD value overall for the payout?
I don't think it's possible right now. It will most likely require a hardfork, if ever the witnesses agree to change the consensus.
oh ok, i thought maybe some UIs allowed more options than just 50/50 or 100% steem power.
Rewards are part of the consensus, they do not depend on UI.
Since posts are made via UIs, the options available for choosing post payouts depends on UIs supporting the available options - for example steemit.com does not currently support splitting payouts between multiple beneficiaries, yet it can be done at the blockchain level and is done by other UIs. I thought that, as with beneficiaries, more options existed for SBD/Steem splits than is visible in the Seemit UI - but maybe not.
yep, not.
Also
not necessarily true. You can interact with the blockchain directly via the cli_wallet, if you wish...
Good job, awesome explanation because I was wandering where my sp goes, and my favorite tool! Thanks!
It was very very confusing and suspicious so far, thanks a ton for the straightforward explanation, nice job! Voted you as a witness! cheers
:D
Now to wait for Steem.Supply to work again for me and see how hard my projected income "Drops", which it doesn't, because it was an error anyway, but still.
;_;
Good job! We got there in the end, including all the 85/15 discussions. It was worth it. All for the sake of understanding. Thanks for persevering <3
Thanks for surviving to my proverbial stubbornness :)
Thank you for cooperating and being awesome, you stubborn men! <3
Stubbornness is next to Godliness. I think... right?
Thank you for this! Really useful!
my pleasure, glad it's useful :)
Incredibly so! Thanks!
Thanks for that. That makes it so much clearer.
Thanks @dragosroua for the updates, steem.supply is an amazing tool which is beneficial to all the members of steemit platform, i appreciate your decision of removing JSEcoin code, you may find even better alternatives once steem.supply gains little more popularity. Good luck!
Me, too.