Simple Steemit Rewards Breakdown (How it works since HF20)

in #steemit6 years ago

Since HF20, many of us are confused by how the rewards work. I've decided to create a new breakdown of the reward structure. Here the simplified explanation with illustrations.

STEEMIT Reward Breakdown
Slide 1.png



To demonstrate the effectiveness of the 50/50 reward structure, We need to assume a $2.00 SBD price. When the price of SBD is high, using the 50/50 reward option gives you more returns for your work. See in the illustration below how a $20 vote turns into a $22.50 USD value reward when the price of SBD is at $2.00.

Author 50/50 Reward Breakdown
Slide 2.png



100% reward option is good when SBD price is at or below $1.00 price. The returns are essentially the same and this option really depends on if you really want SP vs SBD.

Author 100%SP Reward Breakdown
Slide 3.png



HF20 reduced the optimal curation time from 30 minutes to 15 minutes. If you vote before 15 minutes, you hand over some of your curation rewards to the author.

Curator Reward Breakdown
Slide 4.png



If the Author votes before 15 minutes, some portion of the author's curation reward is returned to the voting pool. This encourages the author to wait at least 15 minutes which gives everyone else a chance to vote on the blog to get a larger percentage of the curation rewards.

Author Curation Reward Breakdown
Slide 5.png

Curation Simplified
Slide 6.png

I hope you enjoyed reading my Blog. Please remember to Upvote, Resteem, and Follow. Thank you.

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For a breakdown of Steemit Keys:

https://steemit.com/life/@socky/do-you-understand-your-steemit-keys

For a breakdown of why Steem Power is Important:

https://steemit.com/steemit/@socky/why-is-steem-power-important-beginners-read

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This is much better than the last MLM presentation that I viewed.

Are you implying that this has something to do with Multi Level Marketing?

Oh by no mean. I am saying that you made a complicated subject very easy to comprehend. Your explanation is very helpful

Well thank you very much. I'm glad I could make sense of this complicated thing.

Precise and concise explanation about curation details @socky

Thanks, I think that Steemit Inc should be the ones that breaks it down for us with illustrations. Oh well.

I kind of get the impression that Steemit Inc kind of just build us up this package of Steemit goods and then signed over their parental rights... We vote for Witnesses (kind of like voting for guardian angels who will help the platform thrive and have longevity, watching over just enough to make sure the whole village doesn't go up in flames), We vote and curate content for each other and don't have any strict official rules we need to follow, leaving it up to the community to produce and enforce their own etiquette.

We reward those who create good content that we want to read, kind of like paying a farmer for producing food.. Steemit (this site individually) is about reading blogs/articles/news and we vote for we want to see, content is the food of this website and we are the farmers..

Steemit Inc is the invisible diety in the sky that maybe one guys swears will return to us one day..

[ Please note I am full of sarcasm and any attempt to take me at face value may be hazerdous to your mental state.. Please see I have a vivid imagination and a creative way of showing it, I go against the grain and my opinions are very farfetch, weird at best.. If you 'get' me, then kudos to you!
Never take me seriously unless I'm making you laugh along with me xD ]

Thanks for the breakdown, I've been wondering how it worked since hardfork20.

I'm glad you liked it and hope it helps folks understand so that they use STEEM more.

Omg. You just made our life easy man @socky.
Thanks much for this.

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Warms my heart that it was helpful. Thanks

Great way to learn how the systems work. Thanks a lot @socky

Glad I could help.

Infographics are good for Pinterest but not for quoting...

Basic rule of thumb to earn best rewards is to vote approximatively 15 minutes after the post has been created or later.
Look For:
High Dollar: $$
Low Vote Count: 7 votes

High payout surprised me! I have read a few about the reward efficiency, notably https://steemit.com/steemit/@jga/author-and-curator-rewards-in-hf19

I concluded:

  • If you are the first voter on a post, you will reach 100% vote efficiency if the payout is worth 15 times the value of your vote
  • If your vote is worth a few, the relative incentive to vote a post before the end of the penalty time is
    sqrt ( final_payout / current_payout ) * minutes_elapsed / 15

If you vote early on a post that will reach a high payout, the popularity can counterbalance the time penalty, and your vote will have a good efficiency.

I guess your strategy is different:

  • A post which has already a good payout after 15 minutes is in the Hot selection and will soon be in the Trending one. It will land on the moon, your curation reward too.
  • It is necessary to wait 15 minutes that all the first people voted to evaluate what will happen next.

Note that if everyone votes after 15 minutes, a vote after 14 minutes will beat them all.

A really informative post. Thanks for this one!

I guess this is the only post that i look back on every now and then, to understand what's what here. It amazing how you've simplified it for us newcomers. Thanks much man.

Thanks for the explanation, now i'm really excited to search posts with few votes and high rewards to upvote haha.

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