I recently seen a post about someone switching to 100% Power ups for there posts and had to stop and explain the rewards pay out to them. I'm going to take a moment to explain this to everyone.
I still think people should be powering up their Steem Accounts to Steem Power and I am still doing that with my rewards.
But by using the 100% Power Up, when you make your post you are missing out on a lot of rewards. I know some of you are doing it, because of those little steem waves after your post title. That means it's a Power Up'd post. I've been meaning to drop in on some friends I've noticed doing it, but instead I'll just tell everyone now.
Post Rewards
I'm going to start with a quick and dirty on how post rewards and calculated. We know with 50/50, you get half you payout in SBD and have directly in SP (and you lose some around 15-25% to curation). If you use power up you get 100% SP.
That's the easy part.
But now it gets confusing. The intention was that 1SBD would equal around 1USD and for a long time it followed that trend perfectly, but we know that recently the price skyrocketed and it's worth around $7 at the time of this post. But to whatever program thingy that calculate post rewards it's still only with 1USD. So you still get alot of these from 50/50.
Still following, lets make and example.
Lets say you have a post that pays out $10, and right now STEEM is worth $5 and SBD worth $7.
We're going to ignore curation for the example.
If your select 100% power up you will get 2SP, since steemit knows that 1 STEEM=$5, so your $10 post is worth 2 STEEM.
Now if you select 50/50, you'll get 1SP for the 50%. Same as above, steemit knows 1STEEM is with $5. But for the other 50% you'll get 5 SBD, since steemit is still programmed to think that 1SBD=1USD. You can then of course market these 5SBD for about 6.5 STEEM.
Once you power that up you'll have 7.5SP instead of 2SP from the exact same post payout.
This is why it's not a good idea to be using 100% Power Up right now while SBD are currently worth more than 1USD, you are missing out on alot of rewards.
I hope this quick explanation helps some users new and old understand how the post rewards work.
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@phelimint I agree and I Love the SBD that you get right now for the postings..........
Yeah, it's crazy eh. Seams too good to be true.
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a logical explanation, I am very happy with the comparison you make.
Thanks, I think it's important to get the message out so people aren't missing out.
"steemit is still programmed to think that 1SBD=1USD" , i like that design flaw! (-:
Yeah, I hope they don't ever change it!
Great way of breaking it down... I’ve been trying to figure all this out myself and this really helped!
My pleasure, glad I was able to help.
Great tip, the more transperancy about this the better I think. What happens if you click the convert to steem button on SBD in the wallet?
I made the mistake when SBD was heading higher to keep 100% SP. You did a great explanation on why 50/50 is the way to go!
i am new to steemit i just started yesterday and your post answered one of the many questions i had. thank you
Awesome it helped me, there's a few other new user posts I made that you may find really helpful as well.
Yes thanks I got stung by that in a big way, I paid money via coinbase for all the sbd at about 100 usd and used power up on the post 100% what I got out on post sitting on 7sbd was 0.7 sp!!!!!! thats 70.00usd for 7 usd!!!! I was really hurt by this! if you dont have much following using the bots u nomally only get back about 80% of your sbd back and a little sp then I ask you what is the point!!!! : (((((
Yeah, with SBD so high recently I haven't been using the bots anymore.
Thanks @phelimint! Good advice! I understood it pretty well when I joined, but since then the tables have turned a little.
happy to hear your explanation of this. thanks for his syering
Yea thank you for the break down, you definitely cleared up some confusion for A LOT of people including me ☺
Resteeming because I found this helpful, glad I follow you.
Thank you for the explanation. I have been on here since July and have yet to figure how it all works...transferring SBD/STEEM to BlockTrades to then wherever...to then somehow getting into cash or Bitcoin. Any help that could broken down so I could understand it would be greatly appreciated.
Thank you for sharing!
Kenny
Thanks mate you nailed it I now understand, I feel the force within grow stronger :-)
Thanks for this Phil. It's great of you to do this public announcement
This was a post that needed to be done. I was going to do one but found this and you explained it great! Thanks!
Yup. Each sbd is worth $10. So a $20 payout yields maybe 10 steem dollars so that’s really $100 plus the steem power you get. I started the 50/50 split about a month ago.
So my newest post has three upvotes at $1.00. So my post is actually worth 10 USD? Is that right?
I think the $ value of SBD has dropped some but it's still the way to go. Bittrex is showing the bid / ask for SBD at 7.90/7.98 as of the time of this post. If you have a $3 payout showing, then about 20-25% will go to the curators so that takes it down to about $2.25. the 50/50 payout will split half steem power and half steem dollars so you'll get a bit over 1 Steem dollar which is worth $8.
If you look at the value of the post right before the payout it's always higher than the actual payout because a portion goes to the people who voted on your post in the form of curation rewards. That's my understanding anyway. The value of STEEM vs SBD affects the amount of SBD vs SP you get from the 50/50 split too.
So it's complicated. But the 50/50 option still makes sense right now because SBD are worth more than STEEM is (STEEM is at 6.20 right now).
I changed mine a couple weeks back when sbd started climbing! @papa-pepper did a posting about it and I payed attention...
Thank you! I will not lose rewards
guilty😝, but thankfully you caught me after my first 100% power up
Yeah, I stopped in and told a few people I saw doing it.
Great explanation. Resteeming so my followers get a chance to see this. I have several people that do this as well.
Handy advice @phelimint! I will spread the news!
Wow! Thanks for sharing. Simple math, but definitely overlooked.
Thats only when sbd is higher than Steem, correct? Or it’s true whenever sbd is higher than 1 dollar?
Perfectly clear explanation @phelimint, thanks for posting this! I finally understand the payouts now.
You have projected great Alerts in your Article..i like it & Resteemed
Most people thinks power up means "have all the whole money"
Thanks for the information, switching to 50/50 now. Makes perfect sense
Steemit makes it very unclear what powering up does. It would make sense to get the equivalent value no matter what you do, but that's not what happens.
Now i fully understand...
Resteemed...
cheers mate this is quality info for me
Well said @phelimint SBD will keep us stacking all day! #wordsofwisdom
Uh oh! I recently shifted due to the thought that there might be no significant difference. Now, with this, I realized I made a mistake. Lesson learned for me.
I watched a video about this topic too and how the prices effect when you should power up 100%.
This is well-explained. Resteemed as I believe many will find this helpful.
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@phelimint This is great. It will make a lot of saving.
I'm so new to all this, thanks for the information
thanks @phelimint! Can always count on you for great advice on how to use steemit - especially for beginners
Thank you very much for this post .
That helps perfectly pal, was trying to get my head round that for a while.
Yeah, it was an old post, but just noticed a lot of new guys using power up, so it was time to revive it
Great information, wish i would have found this post sooner. It's never too late to learn something new. @phelimint