How Payouts Work on Steemit - A Visual Guide

in #toolkit7 years ago

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How Do Payouts Work?


In our last guide, we explained how an upvote works as a mechanism to distribute tokens from the reward pool each day. Those rewards accumulate in posts / comments and amount to your eventual “payout.” In today’s Toolkit, we’ll explain how to the payout process work from start to finish and what each number means.

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Choosing Your Post Payout


Each time you click the “Submit a Story” button in preparation of post, you’ll have the option to choose 1 of 3 payout types - Default (50%/50%), Power Up 100%, and Decline Payout. What does each one mean?

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  • The default 50% / 50% option splits your payout rewards between STEEM Power and Steem Dollars (SBD). The split is based on a 3.5 day average value of both currencies in relation to the US Dollar. The STEEM Power will be vested into your account while the SBD will be readily available for you to withdraw or exchange. (Learn more about the differences between the two, here.)

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  • Power Up 100% converts all of your payout to STEEM Power. This is an efficient option for new users to quickly build their voting power while they focus on familiarizing themselves with the technology, platform, and community. (Learn more about SP here.)

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  • Decline Payout is just that - declining to take any rewards for the post or comment you made. You'll notice some of the bigger accounts on Steemit (the whales) declining payouts so that they don't drain the daily reward pool. In many cases, it's an announcement / etiquette thing.

No matter which option you choose, your post or comment will “pay out” exactly 7 days after initial time of posting. During that time, clicking on the dollar amount will show you the approximate time before payout.

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Payout Breakdown


When a post is paid out, you’ll see the division between rewards Authors and Curators.

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As touched upon briefly in the Upvote Guide, a percentage of payouts are distributed amongs the “curators” that upvoted your post or comment and the majority to your account. The distribution is approximately 75% to the author, 25% to the curator(s). You can read more on the detailed nuances of calculating curation percentages here.

Redeeming Rewards


After the 7-day period, the payout will appear in your Wallet tab like this. Clicking Redeem Rewards will transfer the amounts to your account. Curation rewards are also redeemed in this way.

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Exploring More @sndbox Steemit Toolkits


Thanks for reading! We hope you found this "Upvote Guide" useful. If you have any questions please don’t hesitate to reach out in the comment section. Check out our other toolkit posts for helpful tips and ideas :

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Solid post, wish I had this 23 days ago when I made my account! hahaha. Thank you for this :)

Yes I remember how confusing it was at the beginning.

Paid to post WHAAAT?!

I like your articles about what you would do for steemit, I'll give you a follow. :)

A lot of buttons... no not really buttons, it is a complex system. USD, Steem$, SteemPower, APR, witnesses, voting, ... my simplified understanding so far: steemit = twitter on the blockchain

Your reputation score is rising quickly. Great job!

Thanks! I did really well on my first few posts. I love the research you posted, very detailed!

Hah, you have it now! Glad you found it useful :)

@sndox i have been looking for a post like this this couple of days to correctly explain this stuff. I really appreciate. Good luck in the future!

Thanks for reading and for your support :)

This is a great article... I finally understand how this is working better now.

Glad to help!

So if I am new on Steemit should I use more often: "Power up (100%)" rather than "Default 50% - 50%"?

As a really simplified rule of thumb for newcomers, we would recommend the following -

If you're learning about crypto for the first time and just want to grow your account efficiently with no hassle, we suggest 100%

As you get to know the platform better, learn about the internal Steemit Market, and want to start trading/withdrawing STEEM/SBD, we would suggest 50/50

Hope this helps!

that helped, thanks!

Good to know! Thanks for the information man.

Good post thanks....but....do you still get tokens after the 7 day period if people keep upvoting please?

YES finally it makes sense

wonderfull post u have share a topic related to steemit tools and explained very well i really appreciated you for that and my whole support for you.

This is exellent explanation...Thanks from my heart.

You are welcome from my heart <3

Thank you for the concise explanation and great tips in your toolkits, clarifies how steemit works, much appreciated :)