As you already know, last month was crazy in the Steem world. SBD got way out of track and increased up to 14 times its "expected" value - which was $1. This situation generated a reaction from witnesses - me included - which resulted in an increased supply of SBD, but also imbalance in the rewards split. You don't get 50 SBD / 50 Steem Power anymore, but 85 /15. That's a lot less Steem Power...
Unfortunately, during this crazy upswing, many Steemians caved in to the instant gratification stimuli and sold SBD on exchanges for fiat, or just HODLed them, hoping in an even higher price.
Alas, that's not how Steem, as an ecosystem, is working.
The base currency here is STEEM, not SBD. And it always was.
On top of that, what gives you influence in this ecosystem is Steem Power.
As much as I understand the need to take out some profits - a legitimate need, don't get me wrong - I try not to deviate too much from the main course.
So, I came up with this strategy called "fractional" power up.
It's way simpler than it sounds: basically, you power up fractions of your revenues, every time you claim some rewards.
For instance, if your Steem Power holdings are in the hundreds, you may power up everything that comes after the comma. You claimed 12.325 STEEM, well, power up 0.325 STEEM. But do it on "autopilot", don't even think about it. Just do it.
Or, if your Steem Power holdings are in the thousands, power up every units that are under 5. Using the same example as above, if you just claimed 12.325 STEEM, power up 2.325 STEEM. And then forget about it.
You may not know that, but about 10% of the STEEM inflation is distributed as interest to SP holders. Not to mention the voting influence, which translates in curation rewards.
Yes, it's nice to enjoy a crazy SBD price, for a while.
But it's even nicer to enjoy a slower, albeit way more stable growth, based on your carefully accumulated Steem Power.
Just sayin'...
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses
If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform):
Thanks @dragosroua for sharing a wonderful strategy , this is really a great strategy to power up atleast in fractions...
There are a couple of points here that can confuse readers, so I think they should be clarified:
First, the Ratio of SBD/Steem you receive is not actually 85/15, so to speak. It is always 50/50. It just means that if, for instance, the split were 66/33, then for every 1 Steem (Power) you'll receive, you'll receive 2 SBD. It is not that if your author reward is "$10", you will get 6.66 SBD and 3.33 Steem, no!
The above scenario happens when Steem is worth $2, and in that scenario you will receive 2.5 Steem (because Steem is worth $2, and 50% of your $10 reward is $5), and you will receive 5 SBD, 1 for each $ of your reward.
And how much is the Steem reward you received worth? No, not 33% or whatever, but 50% of your author reward. The SBD reward's worth is entirely dependent on the price of SBD.
Second, when @dragosroua is recommending fractional power-up, it's important to realize that so long SBD is worth over $1 USD, you want to sell it (either on the internal market or using an external exchange) for Steem, and power that up. Because you don't want to exchange 1 SBD for 1 Steem, as you'll be losing out.
Did you look at your rewards lately? Here's what I got a few hours ago:
It really seems to me that the amount of SBD, versus the amount of STEEM, is following the 85/15 ratio, in what actually means that more SBD is minted or printed than STEEM.
Yes. More SBD is printed.
But it does not actually mean anything bad for us. It is not a case that 15% of our reward is Steem, and 85% is SBD, in terms of value, just in terms of what gets printed.
Your author reward for the above post was "$29", which was then split into 50% SBD, or 14.5 SBD, and "$15 USD worth of Steem Power," which happened to be 2.473 SP. So the reward split is always 50/50 in terms of rewards.
Why is it bad for you to get more SBD, which you can do what you wish with, including turn into more SP? And so long as SBD's price is higher than Steem's (as it is now), it means that you overall end up with more Steem Power.
You also don't get less Steem in absolute terms.
Let's say your author reward is "$100", when Steem's feed price is $1 USD. You end up with 50 SBD and 50 SP, worth $50 USD.
Now let's say Steem's feed price is $2. Your author reward doubles to $200. You now receive 100 SBD, and you still receive 50 SP, which is worth $100 USD.
You're not actually getting less SP!
Peace!
I really don't want to come off as argumentative, and I'd like to point out that I love your content in general, and even voted for you as my first Witness two weeks ago.
I'm just going to post once more because your original post is easily misunderstood, and got me to spread wrong information to people as well. So, forgive me, and understand that this comes from a good place of trying to spread understanding to all <3
You said here that it's not bad, and nothing about value, but, from the OP:
A split that looks like 85/15 happens when Steem is worth $6.66 USD.
At that point, a post which gave you 50 Steem Power and 50 SBD when Steem was worth $1 will give you 50 Steem Power and 333 SBD.
Yes, the relative part of Steem Power is much lower, but the absolute amount is identical.
I think at this point the situation should be clear to everyone, and may we all have a happy new year where Steem is worth a lot. And I think that it increasing our SBD rewards is even better! :) Though yes, the relative increase gets smaller, and buying in gets harder, so if you are interested in powering up, there are downsides to it - it was definitely easier when 1 SBD was worth 2.5 Steem than now when it's less than 1.5. But for that, we just need SBD to rise in price again.
Again, thank you for all your efforts. I use Steem.Supply daily <3
They actually disabled the other mechanism awhile back, so you can't do the convert to 1 USD worth of STEEM option, that would really make people lose out.
Removing false choices is a good call. Good!
This is very helpful thank you. Can you point me to any good resources for better understanding curation rewards and how those payouts work?
Also I would like to know more about hour to change the font sizes, title size and font, etc. Any tips? Or old helpful posts for a newbie?
https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-rewards-were-does-the-money-come-from
Steem Power is where it’s at! Outside of good content, influence and curation power are what matter if you want to help foster and guide a community here.
Currently I use BitShares to transfer my SBD there and sold it there for Steem. I try to trade Steem and accumulate as much profits as possible for reinvesting it into SP. I want bigger influence here because of my stand about upvoting (Source Upvote Myself no More).
everyone has his own strategy but for all Steemians it should be a priority to build their SP for quality upvoting great content here and help to grow social links between us here on Steemit.
p.s. Check my blog I also write TA could be interesting to follow me. Some delegated SP will help me also a lot.
I agree. Steem power is all I want at the moment. Whenever I post I almost always select the 100% power up option for rewards.
@dragosroua I love the Price of STEEM and SBD. Just a lot of Love all around. I think I will Power UP some more STEEM now !
Lots of folks made that mistake. Unfortunately, I fell for that too...
Steem is truly the real big deal not SBD
you can say that again :)
I think in my case I usually try to get a good exchange rate between SBD for Steem. Even when the SBDs started to pump, 1 SBD for around a week or 2 could be exchanged for around 6 to 7 Steem which is a great rate. During that time period, I was actually selling all my SBDs for Steem on the internal market.
The exchange rate since the pump is falling every week. However, I still consider 1:1 SBD to Steem rate to still be a good buy.
@rockjon So was I on the exchange ratio..............
I'm not sure. It really depends when you swapped your SBD for Steem. Don't worry though, I'm pretty sure you have had a good rate for past couple weeks.
I thought what I was doing was wrong. I power up whatever comes after the decimal point on Steem thinking I don't have enough to power up.
Please keep sharing. I'm getting a lot from these.
I'm all about the power-up, and if the SBD/STEEM ratio rises again, all the better (-:
Seems like a good idea for a service someone could make. Something that auto-claims your rewards and powers up a certain amount? Like one of those penny-saver apps.
Recently, I've been powering everything up. I still haven't sold anything that I've earned on steemit, but I'm thinking of selling a bit to see some real income from my activity here.
I love to be in control, so I just rented some steem power for time I knew I can be active
Stumbled upon this just as I'm trying to curb my overzealous resteeming habit! Upvoting and doing the old fashioned chrome bookmark thing instead. Great reference piece & love the reward strategy.
I have a really dumb question though...going to expose some major ignorance here...but when powered down does Steem Power become Steem? (I've never powered down) or SBD? Or a combo?
And does the steem we hold in our wallets do anything for our voting influence?
So wish I'd been in a position to load up back when I first found Steem...at $.20. Crystal ball was apparently broken that day ;-)
Hope this will shed some light: https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-rewards-were-does-the-money-come-from
Thanks much!
"Think of Steem Power like some sort of a deposit which blocks your Steem in a special account, from which you can take it back only by powering down (see below)."
Adding that tid bit in case any lazy readers stumble through here and are wondering the same thing ;-)
Awesome resource!
would be a good thing to do when this helps the growth of Steem/SP.. the SBD is now just something we have for a period.. I guess it will go back to normal one day
Everything has been a little bit strange pretty much since UpBit listed Steem and SBD. I think a lot of traders-- having no real idea what sort of asset SBD is-- simply got onboard and drove up the price. These people are purely investors and probably have no idea what the Steemit social platform even is.
That said, your fractional power-up idea is a good one. I've taken out some SBD to get rid of some fiat debt I owed high interest rates on... from this point forward, I will will probably do a 50/50 split on powering up with my liquid rewards.
That is what I have done from the start, investing in the platform.
I powered up every little bit of SBD that I could, and it was awesome getting 5 steem/SBD.
That's a sensible strategy in taking advantage of crazy SBD prices while still developing SP. I personally will leave everything in SP as much as possible. (Still maybe some SBD just in case...)
I know it's slightly off topic, but I wanted to point out that we aren't getting "less SP power". We would have gotten the same amount of SP regardless of the prices. After all, the payout starts in STEEM to begin with which depends only on SP and voting.
I think a good amount of confusion starts from people starting at the $ amount that is displayed in the steemit UI, where in fact the right starting point should have been how much steem the post is worth. The steem worth of the post does not fluctuate based on the prices at least.
the distribution ratio was not favorable for SP as i kept getting less SP for my post , i had to convert to steem and then to SP, i agree with your ratio but i think i will adjust my ratio for my post to 70% for SP and 30% for SBD
Much appreciated @dragosroua for sharing a magnificent technique, this is extremely an extraordinary system to control up at any rate infractions...
Upvoted and resteemed
I am definitely enjoying these high SBD prices. Converting it to other coins and reinvesting.
Your "Fractional Power Up Strategy" provides steem holders extra joy.....enjoying your post!
Fractional power up is a nice concept for someone who wants to make instant profit but not for someone who is on steemit for the future let's say 3 to 5 years
Thanks @dragosroua,
for today's Tip and guideline, very helpful for us because many things we could not know and learning from your article. Iam holding some SBD for waiting its rate 20$.... your words are also worth.
I just rented some steem power
for time I knew I can be active
Yeah your so right .i highly value this site .it has pace for growth .which is reasonable and quite at times resoanable .
to get more steem power is it right to do a post with 100 % powered up
I deeply agree with you because SP it crucial to bust upvoting here on Steemit and curating too. I deeply believe in social function of this platform, but this function can't be programmed into platform. We the Steemians should do more to be social, not to only mind accumulating wealth here.
Because of that I start a campaign for Better Steemit wit my manifest.
(Source Upvote Myself no More).
everyone has his own strategy about SBD but for all Steemians it should be a priority to build their SP for quality upvoting great content here and help to grow social links between us here on Steemit.
Because I'm experienced in trading, I use BitShares to convert SBD to Steem and trade there. All profits are intended for busting my SP then
p.s. Check my blog I also write TA could be interesting to follow me. Some delegated SP will help me also a lot.
It's tough to give up what feels like hard cash for voting power... but in the long run I think it'll definitely be worth it :)
thanks to you i learnt alot about sbd and steem from this post.it is a great support for a beginner like me.appreciate your effort alot.thanks
And here is my fourth post:
https://steemit.com/challenge30days/@dlina-v-metrah/one-of-my-scar