Post Reward Options: Why Take 'Power Up 100%' vs. 'Default (50%/50%)'
Some people may not understand what the reason is for taking either a different payout option when making a post. Or maybe they don't even know how they payout differently in the first place.
I had a comment last week (or at some point recently) where someone was asking why they would choose 100% vs. 50%/50% payouts. Once you understand, you can make a better choice on how you want to be rewarded.
![](https://steemitimages.com/640x0/http://i.imgur.com/eDlfU6y.jpg)
Choosing reward options
![](https://steemitimages.com/640x0/http://i.imgur.com/c8B7JPl.jpg)
Default (50%/50%)
This is the default payout option as you might have noticed when you first posted.
What does it do?
When the 'potential payout' gets issued after 7 days (used to be 1 day), you will receive at least 75% of that payout as an author. Of that 75% or more total, you will get 50% in SBD, and 50% is STEEM that is the equivalent of the 50% SBD value. If STEEM is worth less than SBD, you get more STEEM than SBD. If STEEM is worth more than SBD, you get less STEEM than SBD.
Why choose it?
Choose the default payout if you want to cash out more quickly. You can transfer all your SBD out and do something with it like convert to BTC, but you can't transfer all your STEEM at the same time as it takes 3 months to withdraw it all.
Choose the default option if you want to keep a near $1 value for half of your rewards. If STEEM goes down in value, your SBD won't as it will stay near the USD $1 value.
![](https://steemitimages.com/640x0/http://i.imgur.com/yCPiITC.jpg)
Power Up 100%
What does it do?
This is where you choose to "Power Up" all your rewards from the post and get paid 100% is Steem Power.
Instead of getting some SBD pegged to the USD, you will only get Steem Power. Steem Power can't be withdrawn quickly like SBD or STEEM, as you need to Power Down for 1 week to receive 1/13th of the SP, and for a total of 3 months to receive it all.
Why choose it?
Choose the 100% payout option if you aren't concerned with needing to withdraw much of your rewards quickly.
Choose the 100% payout option if you think STEEM will be higher than the SBD value of USD $1. If you think STEEM will stay above $1, or go higher, then taking the 100% payout option might be best for you. If you think the opposite -- that STEEM will go down below $1 -- and will want to withdraw some money, then maybe you want to go with SBD to keep that $1 value when you need it.
Choose the 100% payout option if you want more Steem Power to give more rewards in your upvotes. Your vote has more weight to it when it has more SP.
You can tell who has made a 100% payout post by looking at the title of their post indicated by a Steem symbol
Like:
Pretty short and simple once you understand it.
It's up to you to choose how you want to handle your rewards. Each payout option has its pros and cons.
Good luck in your decision :)
do you think there should be a bonus for 100% power up. like even a small one, perhaps receiving 2-5% more on the post? from the reward pool. that gives the blogger incentive to steem up
No hehe. Those who take SBD lose out when the price of Steem goes up. Personal choice. I don't get why people make such a fuss about powering up. It's a psychological ploy to "have more power" in the system based on monetary power deciding how things function, and make sure no one sells to keep the price higher lol. As if it's a bad thing to power down your money that you own. Look at all the other crypto projects and see if their crypto community tells people it's wrong to sell your tokens/coins heheh.
so you're suggesting not to power up and just get SBD? or?
Thanks for the informational post @krnel! I personally did not know about this for a few weeks when I first stared to use Steemit. Having been aware of this for a while now I choose to elect my posts in the 50/50 payout option. I do this because I like to have more control over the rewards that I earn. I like to watch the price of SBD on Bittrex and look for times where the market is at a demand for SBD and then sell them for a premium. This is a great way to incrase your overall reward, as I was getting on average of $1.50 per 1 SBD. That can buy you a lot more Steem!
Thanks for sharing this advice, @elderfinancial. That's a good reason to be open to using both payout options depending on the market and your goals. Good to know. Onward and upward!
Exactly. You should be looking to maximize on each transaction you make on the blockchain. Penny's saved now, will be worth much, much more in the long run.
That's a great point! Thanks for offering that perspective.
I keep thinking about this concept. Love it!
Yup, if SBD goes up in value, you can sell for more than $1 and make more. It does happen once in a while. The past few weeks had it last a while.
Everyone should always be powering up! I have never taken a single SBD off this platfrom
I go 100% Steem power all the way !
im in this for the long run
Sweet, go for it!
I wish I read this when I first started. My first substantial (for me) payout was at 50-50 as I didn't know what to choose so I left it at the default. Then I read that power up was better so I had to read up on converting the sbd to steem. But when I decide to power up for the next, I was advised to hold on to some liquid in case I wanted to learn trading. Overall, it had been confusing for a total noob. There were posts defining the currencies but not like this. In any case, I'm using this as reference for when I try to explain it to people I'm tying to invite to the platform. As always, thanks!
Great! Glad to was still able to give you info. I just explained simple easy to understand way it works. Not a long post on more like what to do with STEEM or SBD hehe. Good luck in the future to learn how to trade it for BTC ;)
Holding off until my feet aren't cold. Then I'll start trading really small just to wet my feet. I'm keeping my eyes peeled in case you drop more trading-related experience here and there xD
Glad I chose to follow you, this is the 2nd helpful article I've read from you - that sounds bad, I mean to say this is the second post I've read. I just started following last night. I'm new so I am going to choose the 100% Power Up to gain strength in voting. I did not understand the difference till tonight. Thanks
Sweet! Glad I was able to help you understand more.
Thank you for this clarification. That's one of the things I've still been trying to figure out. Makes so much more sense now. I'm definitely going to choose the 100% powerup option now. :)
Sweet, glad it helped you out as well :)
Thank You for posting this I Resteemed it and UP Voted as well as Followed. I wondered how all these things would factor in now I know without having to ask again.
You're welcome and thanks for your support
Thanks for clarifying this @krnel.
I remembered someone saying a while back that you could power up in the market and get better returns because rgegrzinihbnhnjro nabianiba. (It got a little confused during the explanation).
But this makes more sense now. I'm powered up to 100%.
Haha, yeah are games people play with differences in price too, from the internal exchange to other external ones. Buy lower at one and sell higher at the other.
That's just way too much effort.
I'd rather just pound away writing,posting and commenting.
Yeah, it's more honest work. You actually produce content. Trading is just money games, moving money from place to place to make more money, but not actually producing anything. That's called usury I believe ;) We have too much of it in the world and it allows people to be rich by doing nothing really... just money games.
Here in the US, usury is charging what is considered to be an unacceptably high interest rate. So, credit card companies can charge 29.99% interest and it's OK, but 30% is usury.
The banksters and wall street people have corrupted the economy so the paper shufflers are rewarded and the actual producers are left to fight for the crumbs.
Exactly. Look at how ignored people who grow food are. They grow the plants that feed us. They have the power that sustains our lives. People who produce things get shafted, while the owners make most of the profits off their work.
Sadly, it seems that most Muricans want to be those people rather than change the system so they aren't rewarded for being greedy selfish bastards.
Thank you answered something I wondered about but had not yet tried to figure out
Sweet, try what you want to get. Short term vs. long term hehe.
I might try a couple at 100% since at the moment I'm powering up my earnings anyway. I need to think about what I want to power up to, and which way to do it is more advantageous at the time.
Thanks