Why the dollar payouts don't match the amount of STEEM that you get for a post explained in a simple video.

in threespeak •  last month 

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When you examine the breakdown of any post currently, you will notice that the amount of STEEM you get does not match the number of dollars that represent the payout.

Example:


Screenshot 2019-11-03 at 10.22.37.png


The current payout of this post is $139,83

But the amount of STEEM that will be earned is 346 SP + 346 STEEM = 692 STEEM.

692 STEEM at current STEEM price of $0,15 is $103,80.

In this video, I explain why that is the case.

You will also learn about Steempower, STEEM, SBD, and the virtual supply.

Enjoy.


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Very interesting. Thank you!

Posted using Partiko Android

That was worth watching. I've never managed to understand this before!

Very useful. Thank you for the insight. Let's hope the course will slowly rise.

Posted using Partiko Android

yes its all about looking ahead and keep collecting who knows where steem will head towards in a short period of time .... its time to collect more

  ·  last month (edited)

Knowing the basics of steem payouts is something that every new steemer should take a lesson upon in order not to be disappointed or expecting something else. There could be still clearer payout system, but at least to understand the current one and why some things are the way there are is a great first lesson.

Hi, @exyle!

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You did a great job explaining what is happening. I always used to get really confused when the numbers would not match up. Then I learned about things like curation and all of that. Awesome video!

Congratulations @exyle!
Your post was mentioned in the Steem Hit Parade in the following category:

  • Upvotes - Ranked 8 with 796 upvotes

Great post, @exyle... Very useful!

Here is my opinion on all of this, not my opinion on your video, @exyle. I hope I am not wrong on my low level assumptions on the STEEM blockchain inner workings. You are a witness, or you were in a time, so please don't be too hard on me if I am very wrong.

As far as I know, when steemians upvote, they say "those are my VESTS -shares- on the Steem blockchain and I think this post/content deserves the corresponding share of the inflation of STEEM".

What Steem front-ends know for sure is the amount of Steem the post will get, according to the Steem Power of those who upvoted and taking into consideration the formula which allows to convert between VESTS and STEEM. That STEEM is normally paid in the form of Steem Power, some other times also split in liquid and non-liquid STEEM.

Fiat currency conversions are something fully outside the blockchain, and it will be fluctuating continually, adding complexity to front-ends, as your video is not the first one which tries to explain all of this, and will of course not be the last one. What participants will get is STEEM, for sure, while they will most of the times be unable to convert the rewards to other cryptos, as most of it will be rewarded in illiquid SP.

They would be able to convert 50% of the STEEM at the rate used to calculate the rewards, at most. So showing the reward in fiat is always lying to the user and the visitor to all of the Steem participants.

In my opinion, all of this could be simplified by just showing the amount of STEEM a post will get as a reward, which is certainly knew to front-ends without having to know the STEEM/USD conversion rate -being it from the witnesses data feed or from third-party websites like coinpaprika-.