VOTING POWER VS STEEM POWER: explained simply
So I have realised yesterday with the help of @indigoocean that there is something that I have not done in a while. (I hope this clarifies the issue a bit)
A "clarify the concept" post:
so today I am going to attempt to explain to you all the difference between
STEEM POWER and VOTING POWER
I have been vaguely aware that a lot of people who are new Steemians do not always have a grasp of the inner mechanics of how all this works. Its like a car: you do not really need to know how it works to be able to drive it.
I made it a point to try and learn a bit of the mechanics when I first started because this was really interesting to me but I guess we are now moving into a phase where we get people here that just want to blog and make some extra income, nothing more.
So for those that want to know a little bit more and understand why somethings happen to them in certain cases. This is also very non technical, I am by no means a blockchain expert but I have picked up a bit of knowledge along the way.
STEEM POWER:
basically this is the amount of "shares" you have in the network that allow you to vote. The more "shares" the bigger the vote. So I have now 1,009.683 STEEM that are (in)Vested in the steem blockchain. This is my Steem Power and this SP represents a vote of 0,17.
If the sale price of STEEM goes up then so does the value of my vote (and your post)
The picture you see here is a screenshot from https://steemworld.org/@felander (made by @steemchiller ) which I use a lot and it shows you a different view of my account. If you want to see yours then just replace @felander with your username.
The Voting values you see on the side is the voting bar that you get from 500 sp on steemit.com (but I think its from the beginning on busy.org) This allows me to split up my 0,17 cent vote into smaller parts and cast half a vote or 10% of a vote. So voting at 100% voting value gives me 0,17
and that is where the other part comes into play:
VOTING POWER
If there would be no voting power there is nothing to prevent me to vote 1000x per day and give away 0,17 * 1000. So the creators of this blockchain (@ned and @dan) came up with a limitation to that.
They have created a system that gives you an unlimited supply of votes but you cannot use them all at the same time. The votes replenish slowly at a rate of 20% per day or 2% per 2,4 hours (this is also the reason the bidbots vote every 2,4 hours)
So there is a drop every 2 hours, you can empty your bucket all at once or drop by drop so it stays almost full.
So the more voting power you use the less your vote will be worth. So if you vote at 100% (voting value) you will lose 2% voting power per vote. That means if you vote 50 times in a short period of time you will have 0% voting power and will not be able to vote anymore. Then you have to wait till you have some voting power back.
This is also the reason to be sparse with your votes. You have the option to vote for:
- yourself (post and comment)
- others that write spam and random comments
- good content posts
- people you like or admire
the options is yours...
Personally I upvote
- my own posts at 100%
- people that interact on my post with thoughtful answers (between 5% - 50%)
- people who's posts I like (between 10%-100%)
This leaves me on certain days that I my voting power has replenished to 100% and then there are potential votes that just go to waste. That's where for me the Smartsteem option (made by @therealwolf) is amazing . It allows me to vote for people that produce decent to amazing content and get a bit of profit in return.
if you want a bit more info on smartsteem then please check this post
https://steemit.com/smartsteem/@felander/smartsteem-preventing-abuse-and-generating-profit-for-you
I this helped make things a bit clearer for you all and if you have any questions just let me know in the comments and if you think I could make something clearer do not hesitate to make a suggestion
Thanks for the explanation...there is still one thing, I don't get and wasn't able to find...is there any and if, where can one see the interest-rate of one's steem-power?
I think its on 9% annualy so in comparison to present banks thats massive but in view of crypto its peanuts
Thanks a lot!
So then it sounds like SP is how much you can give and VP is how often you can give it. You can increase how often you can give STEEM by decreasing the % you give each time. So really it seems there is some factor of SP and VP available that you can parcel out within each 24 hour period.
nailed it, you made my "simple explanation post" one sentence...
The power of collaboration 😊
What are the percantages of what I give away? For example if I give a 100% vote with 500 SP? I have also received a reward that was partially made of SP and partially of SBD? How does that break down - I know the reward is 75% of post upvotes value but where does the SBD come from if I vote with SP?
basically the steem blockchain still thinks that the SBD is worth 1 dollar
thats why now is still a good time to receive SBD, in the future it will return to that value
thank you @felander for making things clearer. I'm learning new each day.
well, I guess part of what we do is paying it forward.
Now with this knowledge, am going to regulate on my voting rate. Thanks @felander for sharing.
you are very welcome. it really is a good concept to use for a healthy steem life
I'm new to all of this...and trying to learn more. Your post makes sense and confirms what I was thinking, but my own account has me puzzled. I know that I don't have huge amounts of Steem Power, but my Vote Value has been .01 unless I let my Voting Power drop below 80%. It has been really consistent with this. Can you tell me why my Vote Value would be 0 (started yesterday) even though by Voting Power is over 80%...right now it is at 98%? Is it something that I did...or could it possibly be because the price of Steem has fallen so much that the value of my account is worth less even though I have more Steem now than I did before? Any help or insight that you could offer would be greatly appreciated. (I will be following you. Thank you for your great posts with very clear explanations.)
its just because the steem price dropped from 6 to 2,5 as you already thought. The important thing in the end is going to be having more steem power, not the value of steem at this moment. I like it low, you get more rewards relatively
Thank you very much for answering my question. I really appreciate your help.
I'm still figuring this all out but thanks so much for the voting power and steem power explanations. I am such a minnow that my vote values are not so appealing. But I'll keep on plugging along and that will increase, I assume. Thanks again!
well, you are still new around here, it takes some time to build it up. having low Steem price helps beleive it or not...
keep at it and thanks for stopping by
Oh! How does having low Steem price help? Trying to wrap my head around all of this!
Good info. Any idea how often Smartsteem pays out profit from delegating to their bot? I delegated a few days ago and see I have pending profit but have not received anything yet.
they pay out when there is a minimum of revenue reached... I think its set at 0,5 or 1 because otherwise the server would have to make thousands of micropayments and it would not change anything much
Ah, got it, thanks.
Keep it up.it's a benefited post to all.keep sharing.thanks for sharing.go ahead.nice blog.
thanks
Wow! It's very helpful. Thank you so much for your post. It's very helpful and was very much needed. Keep posting and steam on Sir.
thanks, I will