Hive-Quora Initiative. Q- What are the different conditions in Hive Blockchain, that help curators earn curation reward equivalent to 100% of their upvote value?

Q- What are the different conditions in Hive Blockchain, that help curators earn curation reward equivalent to 100% of their upvote value?

The Post payout comprises of Author Payout and Curator Payout. Author means who publish a post and the curators mean the voters who vote that post.

The post payout is generally in the ratio of 50:50 between author and curator.

There are two counter-effective mechanisms that affect the curation reward of a curator.

The reverse auction window which is 5 mins, inside which if a voter upvotes, then he loses a portion of his curation reward(which linearly varies from 0 to 5 mins). The lost curation reward as a result of voting within this window goes back to the reward pool.
The early voters potentially can earn more curation rewards if a whale upvotes after them.

So, on one hand, you lose a portion of the curation reward for voting early(if within 5 mins), on the other, you gain by voting early before whales jump in to vote that post. That is why it is called the counter-effective mechanism of curation.

The post payout: Author Payout(50%): Curator Payout(50%).

In the Curator Payout(50%), there may be a number of curators. So the distribution of the curation payout is a tricky & interesting one in Hive.

In general, the curator gets 50% of the upvote value. But by doing little engineering on the curation payout distribution & its mechanism, a curator can earn more than 50% of his upvote value, and in some cases may even go beyond the 100% of the upvote value. All that depends on the following:-

Timing the vote; means the position of your vote.
Your upvote worth.
How popular that post is in gaining traction(High payout of the post).
Whales upvote after you in that post.
Reverse auction

Now let's get into the formula for determining the curator reward.

where,
P_T= Total Post Payout
P₀= Post Payout before voting
P₁= Post Payout after voting

So there are three things(apart from reverse auction) which affect your curation reward:-

The total post payout.
How much was the post value before you vote.
How much is the post value after you vote.

We shall analyze it further by taking into account different scenarios & will see how can the curation reward be optimized.

One is voting within the reverse auction window and the other is voting outside the reverse auction. And the third one will be a combination of both.

In actual curation of a post, some people will vote inside the reverse auction and some will vote outside the reverse auction, so we will check further how much can a curator still gain even after losing a portion for voting inside reverse auction window.

Voting outside the reverse auction window

Let's say P₀=0 and a voter adds $1 to the post, then P₁= 1
When the next voter comes in & upvote, P₀=1, and let's say after the vote the post payout is $4, then P₁=4

So if we consider that all have voted after the reverse auction window, the payout of the curator will be

First $1 voter: Pcurator= (1/2) * (√4) * (√1-√0)= 1
Second ($1-$4) voter: Pcurator= (1/2) * (√4) * (√4-√1)= 1

The total post payout is $4 out of which the author payout will be $2 and curator payout will be $2.

So the total curation reward is $2.

Now see the distribution of this curation reward of $2.

As you can see the first $1 voters, gets $1 as curation payout; which is half of the total curation reward $2.

Second, the first $1 voters upvote value is $1 and they are getting curation reward as $1. That means the first $1 voters are making 100% of their vote value.

Means in a payout of $4, Curators contributing to the first $1 of the post make 50% of the total curation payout & curators make 100% of their upvote value as curation reward.

If a voter is voting outside the auction window-- For a post payout of $4, the initial $1 voter(s) will get 100% of their upvote value as curation reward. The curation reward can be more than 100% of the upvote value if the post payout is more than $4 under such a condition.

Voting inside the reverse auction window

The reverse auction window is 5 mins.

Let's say P₀=0 and a voter adds $1 to the post, then P₁= 1
When the next voter comes in & upvote, P₀=1, and let's say after the vote the post payout is $4, then P₁=4

Suppose all the curators have voted inside the reverse auction window. Let's say 2.5 mins age of the post, then Δt= t/5= 2.5/5= 0.5, so the payout of the curator will be:

First $1 voter: Pcurator= (1/2) * (√4) * (√1-√0) * 0.5= 0.5
Second ($1-$4) voter: Pcurator= (1/2) * (√4) * (√4-√1) * 0.5= 0.5

The total post payout is $4 out of which the author payout will be $2 and curator payout will be $1, as the remaining $1 curation reward lost due to voting inside reverse auction window and goes back to the reward pool.

So the total curation reward is $1.

Now see the distribution of this curation reward of $1.

As you can see the first $1 voters, gets $0.5 as curation payout, which is half of the total curation payout.

Second, the first $1 voters upvote value is $1 and they are getting curation reward as $0.5. That means the first $1 voters are making 50% of their vote value, as 50% they are losing out as an effect of reverse auction(voting at 2.5 mins).

Means in a payout of $4 & all the curator voting 2.5 mins age of the post, Curators contributing to first $1 of the post, make 50% of the total curation payout & the curators make 50% of their vote value as curation reward.

If the post payout exceeds $4, then the first $1 curator(s) can even make more than 50% of their upvote value as curation reward(despite losing a part due to reverse auction).

Let's take another case in which the curator(s) is(are) voting within the reverse auction window( at 2.5 mins age of the post), still making 100% of his upvote value as curation reward.

Let's say P₀=0 and a voter adds $1 to the post, then P₁= 1
When the next voter comes in & upvote, P₀=1, and let's say after the vote the post payout is $4, then P₁=4
For the next voter P₀=4, and let's say after the vote, the post payout is $9, then P₁=9
For the next voter P₀=9, and let's say after the vote, the post payout is $16, then P₁=16

So the total post payout is $16

The reverse auction window is 5 mins.

Then Δt= t/5= 2.5/5= 0.5, so the payout of the curator will be:

First $1 voter: Pcurator= (1/2) * (√16) * (√1-√0) * 0.5= 1
Second ($1-$4) voter: Pcurator= (1/2) * (√16) * (√4-√1) * 0.5= 1
Third ($4-$9) voter: Pcurator= (1/2) * (√16) * (√9-√4) * 0.5= 1
Fourth ($9-$16) voter: Pcurator= (1/2) * (√16) * (√16-√9) * 0.5= 1

The total post payout is $16 out of which the author payout will be $8 and curator payout will be $4, as the remaining $4 curation reward lost due to voting inside reverse auction window and goes back to the reward pool.

Now see the distribution of this curation reward of $4.

As you can see the first $1 voters, gets $1 as curation reward, which is 25% of the total curation reward.

Second, the first $1 voters upvote value is $1 and they are getting curation reward as $1. That means the first $1 voters are making 100% of their vote value, despite losing out a portion as an effect of reverse auction(voting at 2.5 mins).

Means in a payout of $16 & all the curator voting at 2.5 mins age of the post, Curators contributing to first $1 of the post, make 25% of the total curation payout & the curators earn 100% of their upvote value as curation reward.

If a voter is voting inside the auction window-- For a post payout of $16, voting at 2.5 mins, the initial $1 voter(s) will get 100% of their upvote value as curation reward. The curation reward can be more than 100% of the upvote value if the post payout is more than $16 under such a condition.

Simply put, if a voter is voting inside the reverse auction window (say at 2.5 mins), in order to get 100% upvote value as curator reward, the total payout has to be as bigger as 4 times the total payout if the same voter votes outside the reverse auction window(with all other conditions remaining same).

The first $1 voter voting inside the reverse auction window(2.5 mins age of the post)& the remaining are voting outside the reverse auction window

Let's say P₀=0 and a voter adds $1 to the post, then P₁= 1
When the next voter comes in & upvote, P₀=1, and let's say after the vote the post payout is $4, then P₁=4
For the next voter P₀=4, and let's say after the vote, the post payout is $9, then P₁=9
For the next voter P₀=9, and let's say after the vote, the post payout is $16, then P₁=16

So the total post payout is $16.

Only the first $1 voter(s) are voting inside the reverse auction window(at 2.5 mins age).

The reverse auction window is 5 mins.

Then Δt= t/5= 2.5/5= 0.5, applicable only for the first $1 voter. So the payout of the curator will be:

First $1 voter: Pcurator= (1/2) * (√16) * (√1-√0) * 0.5= 1
Second ($1-$4) voter: Pcurator= (1/2) * (√16) * (√4-√1)= 2
Third ($4-$9) voter: Pcurator= (1/2) * (√16) * (√9-√4)= 2
Fourth ($9-$16) voter: Pcurator= (1/2) * (√16) * (√16-√9)= 2

So the total curator payout is $7(as $1 lost due to reverse auction)

So if the first $1 curator(s) is voting inside the reverse auction window(at 2.5 mins age of the post) and remaining are voting outside the reverse auction window, then the initial $1 voter(s) can still make 100% of the upvote value as curation reward(means he double his theoretical curation reward), should the total post value be at least $16.

The initial $1 voter(s) can be a single curator or can be a cluster of curators contributing to the first $1 post payout. If there will be more than one curator, then the curation will be again on the basis of their position of the vote (within that first $1 post payout) and their upvote value.

We have checked how much the total post payout needed to make 100% curation reward for the curators voting at 2.5 mins age of the post.

Now we will calculate the total post payout figure making the 100% curation reward for curators voting at 1 min, 2 mins, 3 mins, 4 mins age of a post respectively.

First $1 voter: Pcurator= (1/2) * (√Pt) * (√P1-√P0) * Δt= 1

On the RHS, I have taken 1 because to make the first $1 voter(s) earning curation reward as 100% of their upvote value, the RHS has to be at least $1(equal to upvote value).

P_T= Total Post Payout

P₁=$1
P₀= 0

P_T will be calculated in such a way that the curator earns 100% curation reward.
Δt= t/5, where t is the age of the post in mins.

(1/2) * (√P_T) * (√P₁-√P₀) * Δt= 1

=> (1/2) * (√P_T) * (1-0) * Δt= 1
=> (1/2) * (√P_T) * 1 * Δt= 1
=> (√P_T)= (2/Δt)
=> P_T= (2/Δt)²

What should be the total post payout so that the initial $1 voter voting at 1 mins age of the post earns curation reward as 100% of their upvote value?

P_T= (2/Δt)²

t=1 min

Δt= 1/5= 0.2

=>P_T= (2/0.2)²
=> P_T= $100

So the first $1 voter, voting at 1 min age of the post, can earn 100% curation reward if the total post payout is $100.

What should be the total post payout so that the initial $1 voter voting at 2 mins age of the post earns curation reward as 100% of their upvote value?

P_T= (2/Δt)²

t=2 min

Δt= 2/5= 0.4

=>P_T= (2/0.4)²
=> P_T= $25

So the first $1 voter, voting at 2 mins age of the post, can earn 100% curation reward if the total post payout is $25.

What should be the total post payout so that the initial $1 voter voting at 3 mins age of the post earns curation reward as 100% of their upvote value?

P_T= (2/Δt)²

t=3 min

Δt= 3/5= 0.6

=>P_T= (2/0.6)²
=> P_T= $11.11

So the first $1 voter, voting at 3 mins age of the post, can earn 100% curation reward if the total post payout is $11.11.

What should be the total post payout so that the initial $1 voter voting at 4 mins age of the post earns curation reward as 100% of their upvote value?

P_T= (2/Δt)²

t=4 min

Δt= 4/5= 0.8

=>P_T= (2/0.8)²
=> P_T= $6.25

So the first $1 voter, voting at 4 mins age of the post, can earn 100% curation reward if the total post payout is $6.25.

What should be the total post payout so that the initial $1 voter voting at 5 mins age of the post earns curation reward as 100% of their upvote value?

P_T= (2/Δt)²

t=5 min

Δt= 5/5= 1

=>P_T= (2/1)²
=> P_T= $4

So the first $1 voter, voting at 5 mins age of the post, can earn 100% curation reward if the total post payout is $4.

Summary

As you know there are many initiatives & contests happening every week in Hive. There are many curators who curate are their tags and communities. In such initiatives, the participants generally earn in the range of $8 to $14 on average. There are some regular high-quality authors who earn more than $30, $50, or even more. On the trending page, you can check that.

If we consider the $8 to $14 range, then if you vote at 3 mins age of the post and if you are the initial $1 voter then you can earn curation reward 100% of your upvote value, as voting at 3 mins age requires just $11.11 post payout to earn you 100% curation reward.

If we consider the $30 to $50 range, then if you vote at 2 mins age of the post and if you are the initial $1 voter then you can earn curation reward 100% or more of your upvote value, as voting at 2 mins age requires just $25 post payout.

Long story short, the optimal curation timing lies somewhere between 2 to 3 mins age of the post to earn you maximum curation reward.

You can analyze the tags and authors where the post payout is comfortably above $11, then engineer the timing of vote and/or the curation trail. That will enhance your chances to earn 100% curation reward most of the time.

Important Note- Please do note that the actual curation reward will vary & will be more dynamic as it is more sensitive to the timing of the vote, trending & popularity, convergent linear reward, upvote size from whales, etc. The above analysis is simplified based on the assumptions so as to make a better understanding of curation reward for the voters.

All the visuals, charts are my original works.

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dhimmel (66) 4 years ago

The reverse auction window which is 5 mins, inside which if a voter upvotes, then he loses a portion of his curation reward(which linearly varies from 0 to 5 mins).

Didn't this used to be 15 minutes and before than 30 minutes? When did it change to 5?

$0.00

hivebuzz (74) 4 years ago

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Hive-Quora Initiative. Q- What are the different conditions in Hive Blockchain, that help curators earn curation reward equivalent to 100% of their upvote value?

Q- What are the different conditions in Hive Blockchain, that help curators earn curation reward equivalent to 100% of their upvote value?

Voting outside the reverse auction window

Voting inside the reverse auction window

Let's take another case in which the curator(s) is(are) voting within the reverse auction window( at 2.5 mins age of the post), still making 100% of his upvote value as curation reward.

The first $1 voter voting inside the reverse auction window(2.5 mins age of the post)& the remaining are voting outside the reverse auction window

What should be the total post payout so that the initial $1 voter voting at 1 mins age of the post earns curation reward as 100% of their upvote value?

What should be the total post payout so that the initial $1 voter voting at 2 mins age of the post earns curation reward as 100% of their upvote value?

What should be the total post payout so that the initial $1 voter voting at 3 mins age of the post earns curation reward as 100% of their upvote value?

What should be the total post payout so that the initial $1 voter voting at 4 mins age of the post earns curation reward as 100% of their upvote value?

What should be the total post payout so that the initial $1 voter voting at 5 mins age of the post earns curation reward as 100% of their upvote value?

Summary

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