So if you are not aware.. You earn interest on your STEEM Power!
Now this has been debated on how much and how long it is paid, but basically from what I have been told is that we earn 90% SP our first year and that percentage goes down to 10% after the first year.
Right now I am earning around 4-5 SP just in interest every 24 hours, but this rate does rise and fall so I'm not sure on how it is paid..
But if we initiate a Power Down does our remaining STEEM Power still earn interest?
Youre earning about 200% the first year. And yes, y ou will continue to earn interest on your steem power if you power down.
Lets say you have 104 steem power in your account right now.
you start a power down, and you get 1 steem for your first weekly payment.
By the time your power down is finished, you will be getting around 5-6 steem per week. YOull actually get your full 104 long before the payments stop. the rest is interest.
that is to say, that the 104 payments will still zero out your account, but youll realize interest because your payments will keep going up.
Awesome thanks for the information it definitely helps!
I believe you still earn interest while powering down. I did an experiment and powered down for a few weeks (you can turn it off whenever you like) and I actually had more Steem Power after powering down than when I started - and it wasn't from curation or author awards, either. I think it's safe to say that you still earn interest on your SP.
Perfect an already tested EXPERIMENT thanks @beowulfoflegend !
This was exactly what I was trying to figure out :D
Like an idiot, I didn't document it. I'm thinking of doing it again so I have some proof, but so far I believe that's the case. Just don't get mad at me if I got my data wrong, okay? ;)
No worries man ;D
EPIC!! Is the 90 percent thing only in first year true?
I have posted the question, and even DM'd the greatest of minds and still yet to have an answer..
I was wondering same thing. If steem pays 5 percent a week compound interest and you can only take out 1 percent a week, once you accumulate a nice amount say 104k dollars thats 1k a week for rest of days and only going to grow as you earn more than you remove. Too good to be true surely.
not quite. lets say you have 104k steem power. Thats not really steem, its something called vests. Your "interest" comes from the conversion rate between your vests and steem going up.
So as you WD your vests , each payment is going to get progressively larger. But at the end of the 2 year period, you will still zero out.
Also, youre making an error of thinking that you wd 1% of your balance every week. You do not.
You WD 1% of your initial balance every week. but that is a larger and larger portion of your remaining balance.
thanks for clearing that up, helps a lot.
Yes, if you power down you still accrue interest at the same rate.
i don't want interest on my steem power anyway to turn it down..?