Then I guess I still don't understand. What's the underlying math? If steem is down, shouldn't that be irrelevant, since you'd get the same amount of steem, it's just worth less... right?
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But vote payers also pay in SBD. Less vote value -> less SBD received for upvoting -> lower APR
You can check the steemprofit.info website for the description.
In simple terms: APR = (STEEM + SBD) * 100% * 365
SBD is changed to the value in STEEM.
I think I get it. But if people just paid in Steem for value in Steem, the apr would only change based on reward pool supply?
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Pretty much yes, although @tipu has variable profitability for vote buyers and this also slightly affects investors profit.
But that SBD can buy more steem, so shouldn't that be a wash if apr is calculated in Steem?
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Good point! But there are also other variables, like curation part that has to be taken into account when calculating upvote value and probably this does not scale linearly with SBD to STEEM ratio. Will have to think about it :)
Anyway when STEEM is falling down you can see decreased payouts for all voting services. The good thing is that @tipU upvotes at around 80% VP, not 100% VP like bidding bots. So when there is lower demand for upvotes, @tipu just accumulates more VP (to 90% for example) that can be used later on for increased profit. Bidding bots can't do this since they already reached 100%.
The result of this (and few other things) is easy to spot :)
Hm. Yeah, I'd love to see a post that breaks down all the factors. Not that it would change my behavior, but because I like learning. Though when I learned more about how curation worked...that was eye-opening. There's a big difference between "all you need to know is..." And "these are actually the details"
I think small votes on reliable content are more fruitful than large votes on potentially explosive content because of what I learned, so that's useful.
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