RE: I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.)

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RE: I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.)

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freebornangel in #steem • 7 years ago

Im with you on both of those changes, congrats on getting the pr done!
I hope you do get more involved in the code, redunduncy is good for the ecosystem, imo.

Can you tell me about how the ratio works between the steem price and payouts as relates to sp payouts in 50/50 posts?
Does the price dropping increase the amount of sp gained?
I know a lower price makes more sp per payout sbd, but does the dropping price make it a wash?
A 50/50 post with 20sbd at payout pays 10sbd and 100sp at a steem price of .10usd.
The same post pays 10sbd and 10sp at a dollar.
And 10sbd and 2sp at 5usd.

My question is, does the falling price affect the payout in such a way that the additional sp is a wash in real terms?
Or does a lower price increase the sp gained overall?

7 years ago in #steem by freebornangel

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timcliff 7 years ago (edited)

Assuming you have read the whitepaper. All the formulas for how post rewards work are explained there.

Regarding the 50/50 payout, let's say you have a post that is paying out $10 to the author (after curation rewards are removed). $5 of that will be as SP. The other $5 will be as "liquid payout".

The liquid payout portion is normally SBD, but if the debt ratio is above 2% - then it starts to pay out a portion as STEEM instead of SBD.

If the price of STEEM were twice as high - you would be getting a $20 payout, with $10 SP and $10 liquid. The $10 SP is the same amount of SP as the $5 payout - the SP is just worth twice as much. As far as the liquid portion - if it were being paid as SBD you would get twice as much SBD ($10 worth). If it were being paid as STEEM - it would be the same amount of STEEM, just worth twice as much.

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freebornangel 7 years ago

So, the value of the rshares would change the payout in the same ratio as the payout in sp.
The price changing would not affect the payout in real terms.
We get paid the same ratio irregardless of the price?

What the rshares lose in value offsets the increase the sp payout?

What i was hoping to hear was that posting when the price is low leads to a greater increase in account value as the price rises.
But, i think you are saying its a wash?

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timcliff 7 years ago

When the price is low, less users are posting - so there is probably a better chance for more rshares.

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freebornangel 7 years ago

Thank you!

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