Difference between revisions of "Rewards"

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In his post trying to solve the mystery of the Steemit rewards, even for a 9 year old, the [[Steemian|steemian]] Ilyas Tarar ([https://steemit.com/@ilyastarar @ilyastarar]) explained that all the rewards on your posts and comments are shown with an amount preceded by $ sign. This $ does not mean  US dollars (USD) and is mentioned only for the sake of ease, probably because the whole globe recognizes the $ symbol (and loves it?). The amount mentioned with $ sign is actually [[Steem Dollar (SBD)]], not US dollars. You will not be paid out in just SBD though. Your rewards will be converted to [[STEEM Power (SP)]] and [[Steem Dollar (SBD)]] depending on whether you want both or just the SP.<ref name=ilyastarar>[https://steemit.com/steemit/@ilyastarar/the-mystery-of-steemit-rewards-solved-even-for-a-9-year-old-see-what-you-actually-get-from-steemit The Mystery of Steemit Rewards Solved Even for a 9 Year Old. See What You Actually Get from Steemit!!!] Written by '''Ilyas Tarar''' ([https://steemit.com/@ilyastarar @ilyastarar]) on [Steemit]], published in June 17, 2017</ref> The [[Steemit]] FAQ defines that the amount that is shown next to a post is a "Potential Payout".<ref name=faq1>[https://steemit.com/faq.html#Why_do_the_earnings_for_my_post_go_up_or_down Why do the earnings for my post go up or down?] Published on '''Steemit FAQ''', retrieved in February 19, 2018</ref>  
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In his post trying to solve the mystery of the Steemit rewards, even for a 9 year old, the [[Steemian|steemian]] Ilyas Tarar ([https://steemit.com/@ilyastarar @ilyastarar]) explained that all the rewards on your posts and comments are shown with an amount preceded by $ sign. This $ does not mean  US dollars (USD) and is mentioned only for the sake of ease, probably because the whole globe recognizes the $ symbol (and loves it?). The amount mentioned with $ sign is actually [[Steem Dollar (SBD)]], not US dollars. You will not be paid out in just SBD though. Your rewards will be converted to [[STEEM Power (SP)]] and [[Steem Dollar (SBD)]] depending on whether you want both or just the SP.<ref name=ilyastarar>[https://steemit.com/steemit/@ilyastarar/the-mystery-of-steemit-rewards-solved-even-for-a-9-year-old-see-what-you-actually-get-from-steemit The Mystery of Steemit Rewards Solved Even for a 9 Year Old. See What You Actually Get from Steemit!!!] Written by '''Ilyas Tarar''' ([https://steemit.com/@ilyastarar @ilyastarar]) on [[Steemit]], published in June 17, 2017</ref> The [[Steemit]] FAQ defines that the amount that is shown next to a post is a "Potential Payout".<ref name=faq1>[https://steemit.com/faq.html#Why_do_the_earnings_for_my_post_go_up_or_down Why do the earnings for my post go up or down?] Published on '''Steemit FAQ''', retrieved in February 19, 2018</ref>  
  
 
===Potential Payout===
 
===Potential Payout===
  
This is an estimated value of how much money the post will make based on the votes that have occurred so far. Depending on various factors, this value can go up or down until the payout window closes:
+
Taken from the Steemit FAQ definition, Potential Payout is an estimated value of how much money the post will make based on the votes that have occurred so far. Depending on various factors, this value can go up or down until the payout window closes:
  
 
* If a post receives more upvotes, the potential payout of the post can go up.
 
* If a post receives more upvotes, the potential payout of the post can go up.
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The [[Steemit]] FAQ details that posts and comments remain active for 7 days. When the period is over, you are able to claim their earned rewards. In your Wallet, click the Claim Rewards button to add the tokens to your account.<ref>[https://steemit.com/faq.html#When_can_I_claim_my_rewards When can I claim my rewards?] Published on '''Steemit FAQ''', retrieved in February 19, 2018</ref>
 
The [[Steemit]] FAQ details that posts and comments remain active for 7 days. When the period is over, you are able to claim their earned rewards. In your Wallet, click the Claim Rewards button to add the tokens to your account.<ref>[https://steemit.com/faq.html#When_can_I_claim_my_rewards When can I claim my rewards?] Published on '''Steemit FAQ''', retrieved in February 19, 2018</ref>
  
=== Voting power ===
+
=== Steem reward system exact calculations ===
 
 
The voting power is a mechanism to have an stable economy. It is a mechanism to reduce the possibility that everyone could vote all the time and therefore a way to incentive the correct voting, proof-of-brain.
 
 
 
The voting power consists of a percentage, every time you vote the voting power is reduced a little bit, and at the same time it is regenerated at a rate of 20% per day (that is 100% in 5 days). This regeneration is not calculated every time a new block is created in the blockchain, but when you vote it does the calculation from the time since the last vote:
 
 
 
 
 
[[File:Regenerated_power.png]]
 
 
 
 
 
where Bt is the block time, Vt is the last vote time of curator, t is the elapsed seconds, and rp is the regenerated power. Then it is added to the last voting power Vp0 and limited to 100% in order to calculate the current voting power Vp:
 
 
 
 
 
[[File:Voting_power_limitation.png]]
 
 
 
 
 
The curator can set a weight w for his vote, from 0% to 100%. This weight can be positive ([[upvote]]), or negative (downvote or [[flag]]), and the power used for both cases is the same, then the weighted power wp is:
 
 
 
 
 
[[File:Weight_from_voting_power.png]]
 
 
 
 
 
Finally, the voting power used pu is a small part of this value, and it is calculated using the following formula:
 
 
 
 
 
[[File:voting_power_used.png]]
 
 
 
 
 
For example, if the voting power is 100% and the weight is 100%, then voting power used is (100% + 0.49%)/50=2.0098% which is rounded to 2%. If the voting power is 70% and the weight is 100%, then power used is (70% + 0.49%)/50=1.4098% which is rounded to 1.4%.
 
 
 
If we assume that 0.49% can be neglected in the formula. Then the power used can be simplified:
 
 
 
 
 
[[File:voting_power_used_simplified.png]]
 
 
 
 
 
=== R-shares ===
 
The contribution of a vote to a post (or comment) is measured in rshares, and they are calculated from the vesting shares of curators (steem power) and the voting power used.
 
 
 
 
 
[[File:rshares_equation.png]]
 
 
 
 
 
where Vs are the vesting shares of the curator, and rs the rshares generated. The absolute value of rs must be greater than 50 VESTS, this is a dust threshold, the minimum amount.
 
 
 
== Total payout ==
 
 
 
There is a pool of rewards called reward_balance. This balance is distributed between the latest posts. Then the payout of a single post, measured in STEEM, is calculated as follows:
 
 
 
 
 
[[File:payout_in_steem_from_rshares.png]]
 
 
 
 
 
where RS is the total rshares accumulated by the votes, rb is the reward_balance, and rc is the recent_claims (measured in VESTS). This two values are global variables (look their values at [https://steemd.com steemd.com]). If we want to calculate the payout in SBD, then the steem is multiplied by its price:
 
 
 
 
 
[[File:from_steem_to_sbd.png]]
 
 
 
 
 
=== Worth of a vote ===
 
 
 
The worth of a vote is calculated in the same way as the total payout, but using the rshares of the vote. One thing to keep in mind is that a regular user does not know what their Vesting Shares are, but only knows their STEEM POWER. The way to calculate the them is using other 2 global variables, total_vesting_shares and total_vesting_fund_steem:
 
 
 
 
 
[[File:from_sp_to_vests.png]]
 
 
 
 
 
where Vs are the vesting shares of the curator, SP is the steem power, TVs is the total_vesting_shares, and TVfs is the total_vesting_fund_steem.
 
 
 
In this way, we can calculate the worth of a vote in a simplified way. Defining the voting power Vp and the weight w as values between 0 and 1 (0 for 0%, and 1 for 100%), the worth of a vote is:
 
 
 
 
 
[[File:worth_of_vote.png]]
 
 
 
 
 
where Vp is the voting power, SP is the steem power, w is the weight of the vote, and g is a global variable calculated as:
 
 
 
 
 
[[File:global_variable_worth_vote.png]]
 
 
 
 
 
where TVs is the total_vesting_shares, TVfs is the total_vesting_fund_steem, rb is the reward_balance, rc is the recent_claims (measured in VESTS), and price is the steem price. All of these 5 values are global variables (look their values at [https://steemd.com steemd.com]).
 
 
 
=== Distribution of the total payout ===
 
 
 
The total payout is distributed between 3 parts: Author, curators, and beneficiaries. There is no a fixed percentage, but a series of calculations and transfers.
 
 
 
First, '''75% are for the author'''. However, in the post maybe a percentage of it is defined for the [[Reward Beneficiary| beneficiaries]]. This is a new feature in the [[Hard Fork 18]] and allows new monetization options for developers working on Apps for STEEM.
 
 
 
'''Distribution to curators'''
 
 
 
The remaining '''25% of the payout are for the curators'''. But some of their money goes back to the author, and the rest is finally distributed between curators. How is it calculated? First, lets define these values:
 
 
 
*  rs: rshares generated when the curator votes.
 
* RS0: rshares accumulated by the post before the curator votes.
 
* RS1: rshares accumulated by the post after the curator votes. That is RS1 = RS0+rs
 
* RST: total rshares after a week
 
 
 
The percentage of reward for a single curator is:
 
 
 
 
 
[[File:percentage_single_curator.png]]
 
 
 
 
 
However, some of this percentage goes back to the author. If the curator votes 30 minutes after the publication of the post, then 100% is for him, but if it is between the first 30 minutes he only takes a part of them, the ratio between the time and 30 min, and the rest is for the author. Then
 
 
 
 
 
[[File:percentage_single_curator2.png]]
 
 
 
 
 
where
 
 
 
 
 
[[File:math_rule_30_min.png]]
 
 
 
 
As we saw earlier, we can transform the rshares into STEEM or SBD with a global variable. Then if we multiply the numerator and denominator for the same value, we can calculate it in terms of STEEM or SBD. And next, multiplying it with 25% of the payout we can calculate the payout for a single curator:
 
 
 
 
 
[[File:payout_single_curator.png]]
 
 
 
 
 
where P0 is the payout of the post before voting, P1 is the payout of the post after voting, and PT is the payout after 7 days (the final payout).
 
 
 
'''Important note:''' On steem, the formula to calculate the [https://github.com/steemit/steem/blob/master/doc/sqrt.md square root is not exact but approximate], to be able to make operations fast. Then the above calculations could differ a bit from the reality.
 
 
 
=== Steem incentives voting good content ===
 
 
 
What is the incentive for being an early voter? Being P1 the payout of the post after a curator votes, consider 2 situations:
 
 
 
1. After a week the post does not get more votes and stays the same. PT = P1
 
2. After a week the payout scales n times, that is PT = n * P1.
 
 
 
In the first case, the curator payout will be:
 
 
 
 
 
[[File:payout_case1.png]]
 
 
 
 
 
And in the second case, the curator payout will be:
 
 
 
 
 
[[File:payout_case2.png]]
 
 
 
 
 
Then
 
 
 
 
 
[[File:payout_case1_case2.png]]
 
 
 
 
 
Then the incentive for being an early voter is sqrt(n). For instance, if the total payout scales 4 times, then the curator payout scales 2 times. If the total payout scales 9 times, the curator payout scales 3 times. The sooner the vote the more possibilities of scaling the curator reward (except the rule of 30 minutes).
 
 
 
=== Infography - summary ===
 
 
 
[[File:Infographic_rewards.jpg | 500px | center]]
 
 
 
  
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After investigating for a long time but without find a clear answer, [[Steemian|steemian]] and mathematician Julián González ([https://steemit.com/@jga @jga]) decided to study directly the source code of [[Steem]], something a little complex, but he achieved it. He published the results of this research on [[Steemit]] and in [[Steem.center]], which he suppose will be of great help to many. See here in: [[Rewards:Formulas]]<ref>[https://steemit.com/steemit/@jga/author-and-curator-rewards-in-hf19 Author and Curator rewards in HF19] Written by '''Julián González''' ([https://steemit.com/@jga @jga]) on [[Steemit]], published in December 21, 2017</ref> and [[Rewards:Infographic]]<ref>[https://steemit.com/steemit/@jga/steem-author-and-curator-rewards-infographic Steem author and curator rewards - Infographic] Written by '''Julián González''' ([https://steemit.com/@jga @jga]) on [[Steemit]], published in December 12, 2017</ref>
  
 
==References==
 
==References==
Line 189: Line 34:
 
==Links==
 
==Links==
  
* '''@jga''' : [https://steemit.com/steemit/@jga/author-and-curator-rewards-in-hf19 author and curator rewards in HF19] ''December 21st, 2017''
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* '''Steem Supply''' : http://steem.supply/rewards ''Rewards Calculator, retrieved in February 19. 2018''
* '''@jga''' : [https://steemit.com/steemit/@jga/steem-author-and-curator-rewards-infographic author and curator rewards in HF19 - infographic] ''December 12, 2017''
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* '''@shenanigator''' : [https://steemit.com/steemit/@shenanigator/updated-steemit-faq-part-4-payouts UPDATED - Steemit FAQ Part 4 - "Payouts"] ''February 10, 2017''
 +
* '''@timcliff''' : [https://steemit.com/payout/@timcliff/everything-you-need-to-know-about-potential-payouts-and-flagging-for-new-users Everything you need to know about potential payouts and flagging (for new users)] ''February 27, 2017''
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* '''@lukestokes''' : [https://steemit.com/steemit/@lukestokes/do-you-care-too-much-about-steemit-blogging-rewards-find-out-here Do You Care Too Much About Steemit Blogging Rewards? Find Out Here.] ''March 14, 2017''
 +
* '''@eroche''' : [https://steemit.com/steemit/@eroche/steemit-payouts Steemit Payouts] ''March 15, 2017''
 +
* '''@sykochica''' : [https://steemit.com/steem-help/@sykochica/answering-common-questions-what-happens-when-you-vote-on-a-post-that-s-past-payout Answering Common Questions: What happens when you Vote on a Post that's Past Payout?] ''June 8, 2017''
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* '''@steemit.nemesis''' : [https://steemit.com/steemit/@steemit.nemesis/simlilar-content-different-votes-prospeced-payouts-and-curation-behaviour Similar content - different votes, prospected payouts and curation behaviour] ''June 16, 2017''
 +
* '''@alphacore''' : [https://steemit.com/steemit/@alphacore/steemit-problems-reward-values-decay-over-time Steemit Problems: reward values decay over time] ''June 18, 2017''
 +
* '''@biophil''' : [https://steemit.com/steem/@biophil/decreasing-steemit-payouts-will-it-continue Decreasing Steemit payouts: will it continue?] ''July 8, 2017''
 +
* '''@hiroyamagishi''' : [https://steemit.com/steemit/@hiroyamagishi/7-reasons-that-low-payout-is-not-the-reason-to-give-up-on-steemit 7 Reasons that low payout is not the reason to give up on Steemit...] ''July 17, 2017''
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* '''@bitgeek''' : [https://steemit.com/steemit/@bitgeek/payout-stats-report-for-6th-august-2017 Payout Stats Report for 6th August 2017] ''August 6, 2017''
 +
* '''@sndbox''' : [https://steemit.com/toolkit/@sndbox/learning-from-the-steemit-carrot-an-illustrated-guide-on-payouts-upvotes Learning from the Steemit Carrot - An Illustrated Guide on Payouts + Upvotes] ''October 26, 2017''
 +
* '''@kyriacos''' : [https://steemit.com/steemit/@kyriacos/believe-it-or-not-steemit-is-not-about-the-rewards Believe It Or Not, Steemit Is Not About The Rewards] ''January 5, 2018''
 +
* '''@adsactly''' : [https://steemit.com/fun/@adsactly/adsactly-fun-the-value-of-the-potato-dollar ADSactly Fun - The Potato Dollar - The Most Important Value] ''January 10, 2018''
 +
* '''@jesta''' : [https://steemit.com/@jesta/steem-rewards-history-csv-exporter-via-steemdata-com Steem Rewards History CSV Exporter (via SteemData.com)] ''January 31, 2018''
 +
* '''@sndbox''' : [https://steemit.com/toolkit/@sndbox/what-is-a-steemit-upvote-an-illustrated-guide-to-rewards What is a Steemit Upvote? (An Illustrated Guide to Rewards)] ''March 9, 2018''
  
 
==Related articles==
 
==Related articles==
  
* [[Upvote]]
 
 
* [[Curation]]
 
* [[Curation]]
 
* [[Flag]]
 
* [[Flag]]
 
* [[STEEM Power (SP)]]
 
* [[STEEM Power (SP)]]
 
* [[Reward Beneficiary]]
 
* [[Reward Beneficiary]]
 +
* [[Rewards:Formulas]]
 +
* [[Rewards:Infographic]]
 +
* [[Upvote]]
 +
 +
==External Links==
 +
 +
* '''Wired''' : [https://www.wired.com/story/the-social-network-doling-out-millions-in-ephemeral-money/ The social network doling out millions in ephemeral money] ''Written by Andrew McMillen ([https://steemit.com/steemit/@andrewmcmillen/my-story-about-steemit-for-backchannel-the-social-network-doling-out-millions-in-ephemeral-money @andrewmcmillen]), published in 10/4/2017 ''
 +
* '''Leah Stella Stephens [[Medium]] Blog''' : [https://medium.com/steem-stories/steem-whitepaper-for-dummies-rewards-57a6f3b7653a STEEM WHITEPAPER FOR DUMMIES: Rewards] ''Written by [[Stellabelle]] ([https://steemit.com/steem/@stellabelle/steem-whitepaper-for-dummies-reward-distribution @stellabelle]), published in 1/10/2017''
 +
* '''dan atStarLite [[YouTube]] Channel''' : [https://www.youtube.com/watch?v=SGkp36WrqBQ Steemit-101: Understanding The Steem Rewards Pool] ''Video tutorial by [https://steemit.com/steemit-101/@dan-atstarlite/how-big-is-the-rewards-pool-and-how-much-steem-is-paid-out-everyday @dan-atstarlite] published in 7/25/2017. Reached 533 views until 2/19/2018''
 +
* '''Altcoin Today''' : [http://www.altcointoday.com/how-steemit-works/ Here’s How Steemit Works and Rewards Users] ''Written by Katherine Fletcher, published in 8/13/2016 ''
 +
 +
 +
==In other languages==
  
<br>
+
* [[Bahasa Indonesia]] (Indonesian) : [[Hadiah]]
  
 
----
 
----

Latest revision as of 11:40, 11 February 2020

In his post trying to solve the mystery of the Steemit rewards, even for a 9 year old, the steemian Ilyas Tarar (@ilyastarar) explained that all the rewards on your posts and comments are shown with an amount preceded by $ sign. This $ does not mean US dollars (USD) and is mentioned only for the sake of ease, probably because the whole globe recognizes the $ symbol (and loves it?). The amount mentioned with $ sign is actually Steem Dollar (SBD), not US dollars. You will not be paid out in just SBD though. Your rewards will be converted to STEEM Power (SP) and Steem Dollar (SBD) depending on whether you want both or just the SP.[1] The Steemit FAQ defines that the amount that is shown next to a post is a "Potential Payout".[2]

Potential Payout

Taken from the Steemit FAQ definition, Potential Payout is an estimated value of how much money the post will make based on the votes that have occurred so far. Depending on various factors, this value can go up or down until the payout window closes:

  • If a post receives more upvotes, the potential payout of the post can go up.
  • If a post receives more downvotes, the potential payout of the post can go down.
  • If other posts receive more upvotes, the potential payout of the post can go down.
  • If other posts receive more downvotes, the potential payout of the post can go up.
  • If upvotes are removed from a post, the potential payout of the post can go down.
  • If downvotes are removed from a post, the potential payout of the post can go up.
  • If the price of STEEM goes up, the potential payout of all posts can go up.
  • If the price of STEEM goes down, the potential payout of all posts can go down.[2]

Curation, authoring and 7 day window

In another post, this time trying to explain for a 5 year old, the steemian Aggroed (@aggroed) wrote that the folks who are authoring a brand new post are considered authors. The people that are upvoting and commenting on posts are called curators. The total reward for a post doesn't all go to the author. 25% of the rewards goes back to the curator. 75% of the rewards goes back to the author.

He also reminds that there's a weird side note to this. Suggesting thinking of it kinda like investing... people that invest in a post early benefit from the upvotes that happen afterward. If you're within the first 30 minutes some of your curation reward will actually credit back to the author. After 30 minutes, Aggroed continues, you'll get the full curation reward, but you might miss out on some of the big votes that come through. So, timing your curation matters too. If you're a minnow starting out, it doesn't really matter all that much... but as a dolphin I like to time my upvotes to be around the 20-30 minute mark, unless I think a post is going to blast off and then I think it works out to get in early.[3]

In another tutorial (with infographics) published by Sndbox (@sndbox), there is an explanation that each post and each comment is "paid out" after a 7 day window. When you receive a payout, you are actually receiving around 75% - 80% of the post amount. According them it is because the people who have upvoted your post receive rewards too! These supporters of yours are called "curators" and the remaining 20% - 25% is split among them in proportion to how much strength they put towards your post.[4]

The Steemit FAQ details that posts and comments remain active for 7 days. When the period is over, you are able to claim their earned rewards. In your Wallet, click the Claim Rewards button to add the tokens to your account.[5]

Steem reward system exact calculations

After investigating for a long time but without find a clear answer, steemian and mathematician Julián González (@jga) decided to study directly the source code of Steem, something a little complex, but he achieved it. He published the results of this research on Steemit and in Steem.center, which he suppose will be of great help to many. See here in: Rewards:Formulas[6] and Rewards:Infographic[7]

References

  1. The Mystery of Steemit Rewards Solved Even for a 9 Year Old. See What You Actually Get from Steemit!!! Written by Ilyas Tarar (@ilyastarar) on Steemit, published in June 17, 2017
  2. 2.0 2.1 Why do the earnings for my post go up or down? Published on Steemit FAQ, retrieved in February 19, 2018
  3. "I'm new here. Can you explain post payouts like I'm 5?" Written by Aggroed (@aggroed) on [Steemit]], published in May 20, 2017
  4. How Much is Your Post Worth? - A Steemit Rewards Guide Written by Sndbox (@sndbox) on Steemit, published in May 20, 2017
  5. When can I claim my rewards? Published on Steemit FAQ, retrieved in February 19, 2018
  6. Author and Curator rewards in HF19 Written by Julián González (@jga) on Steemit, published in December 21, 2017
  7. Steem author and curator rewards - Infographic Written by Julián González (@jga) on Steemit, published in December 12, 2017

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