Getting Screwed by SBD Payouts: Switching to 100% SP (JK)

in #steem • 7 years ago (edited)

screwed.jpg

So I've been monitoring my Steem payouts and I can't really figure out how it works. Upon further review:

If I was supposed to receive $7.80, why did I only get paid 3.9 Steem Dollars and 2 Steem Power?

When posting, you chose the default 50/50 payout option, so you received half of your payout in Steem Dollars. Half of $7.80 is $3.90. That is where the 3.9 Steem Dollars came from.

Since you received 2 Steem Power, that means the average price of STEEM over the duration of your post was $1.95. 2 Steem Power * $1.95 = $3.90. That is where the other 50% of your payout went.


payout.png

This means that the payout equation is:

(p*c+p)/2
where p = displayed payout and c = SBD conversion rate
the answer is in $USD.

if c = 10 USD per SBD and p = 4 you'd make $22 with 50/50 and $4 with 100% SP

So in reality getting paid in all SP is totally worthless at the moment until SBD is worth less than $1 (never?). Why SP payouts are pegged to USD is beyond me, and I'm sure it confuses a lot of other people as well. It also obscures the value of promoted posts. When you promote a post you have to pay the cost in all SBD, but the payout is only half SBD half USD. As the price of SBD goes up, the USD half of the payout is going to become more and more worthless.

It also confuses me that SBD retains a high value. Why would people want to HODL SBD more than Steem? Steem gives you voting power and SBD gives you...?

SP pegged to USD will be fully confirmed next week when my previous post pays out 💊. Good to know.

#steemit #cryptocurrency #crypto #blockchain
7 years ago in #steem by
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    • [-]
     7 years ago 

    Actually the more I learned about the STEEM ecosystem, the more I think there is something broken with SBD. After all it should be traded as 1$ if it is backed by 1$ of Steem.

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     7 years ago 

    oh snap my upvotes are worth 0.02 now. double up go me lol

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       7 years ago 

      (page 10/11 of 32 SteemWhitePaper.pdf)

      The primary concern of Steem feed producers is to maintain a stable one-to-one conversion between SBD and the U.S. Dollar (USD). Any time SBD is consistently trading above $1.00 USD interest payments must be stopped. In a market where 0% interest on debt still demands a premium, it is safe to say the market is willing to extend more credit than the debt the community is willing to take on. If this happens a SBD will be valued at more than $1.00 and there is little the community can do without charging negative interest rates.

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         7 years ago (edited)

        ...more than $1.00 and there is little the community can do without charging negative interest rates.

        It's called inflation. Pump more SBD into the reward pool until the value is $1.00 USD. Maybe $1.05 for an added buffer. JK I'm sure this isn't an option because of the relationship between SBD and Steem. Steem has fixed inflation. I thought that the entire point of having SBD would be variable inflation but I guess not.

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