How much is my post really worth...?
Let's face it - when we get a gift, we can't help wondering how much it's really worth 😊 For this reason, I decided to write a post to explain to Steemit newbies how much money is a Steemit post really worth to the author, based on the dollar value displayed next to the post. Example:
Newbies might think that the above post is worth 74.70 USD to the author. More sophisticated users will argue that roughly ¼ of the post value goes to curators, resulting in an adjusted author value of about 56 USD.
Is this right? Not really...in fact, based on current market conditions, the post is worth much more!
I see a more sophisticated user coming along now, suggesting that the post is worth way more than 56 USD...Based on the screenshot below (SBD/USD exchange rate), the guy suggests that the actual earning is 74.7 X 8.85 X 0.75= 500 USD. Wow!
Ufortunately, this guy is also wrong. The post is worth a bit less. 😊
Enter the smartest guy in the block. He argues that the actual value is related to the STEEM/USD exchange rate (see below). Yes, but...how?
Eventually, he gives up.
Ok, let me give you a simple explanation and recipe to estimate the USD value of a post to its author.
To make this somewhat fun, let's pretend that we work in a mine, and the post reward is a miner's salary. The salary amount results from the conversation (and misunderstandings) between the mine's boss, and his dumb accountant...
First, the Boss decides (based on his own mysterious criteria) that the post is worth $74.70 (which is the number displayed at the end of the post). Next, he instructs the accountant to first deduct the money due to curators, and then pay the balance to the author, half in SBD, and half in SP based on STEEM price…
It sounds easy, right?
Unfortunately, our dumb accountant thinks that 1SBD is worth 1 USD, always. Based on this assumption, the accountant first deducts 25% out of $74.70, which makes it $56. Then, based on his boss' instructions he divides $56 by 2, which yields $28. Finally, as he believes on one hand that 1 SBD = 1 USD, but on the other hand STEEM price does fluctuate, he ends up paying out a total of 28 SBD + roughly 8.8 SP, having checked that 1 STEEM is currently worth about 3.18 USD. On steemstats.com you can see “the accountant's logic” in action:
Since in reality the USD value of 1 SBD is currently waaay higher than 1, our poor accountant is screwing it up badly, for two reasons:
- He's paying you much more than he thinks,
- He's not splitting evenly the payment between the SBD and the SP share…
The first point is kind of obvious: 28 SBD + 8.8 SP at current exchange rates is worth about 275 USD.
To understand the second point, just think that currently 1 SBD is worth much more than 1 STEEM (roughly 3 times as much), then it's obvious that if you get more SBD than STEEM, the split can't be even!!!
Summary:
Based on market conditions used in this example, the true dollar value for a post's author is roughly 3.7 times the value displayed at the end of the post 😊
Enjoy!
Screenshots from http://www.steemdollar.com/ and steemstats.com. Image from pixabay.com
Thank you for this information. it really clears a lot of doubts about how much we are really getting when we invest our time in this platform. I want to quit my job soon with the help of steemit platform.
That's a very big decision... be careful.
i thought he was saying a joke
So as long as the value of SBD is higher than Steem, it makes sense to take a 50/50 split while upvoting rather than powering up 100%
As long as 1 SBD is worth more than 1 USD, the 50/50 option is more profitable.
The STEEM/SBD ratio is not relevant for this case.
Right.
As long as 1 sbd is worth more than 1 dollar.
Hey man, you write really well, you have a very nice way of explaining stuff in simplistic manner. I would have loved a post like this when i joined a month ago, and understood less than nothing :)
So thanks man, please keep making nice explanations like these
nice mate,, u got new fan
Hi @claudiop63, So, I'm not alone in thinking that Steemit payout criteria is mysterious and unMathematical? :D
Well, the trickiest part is in how you get to the 74.7 figure displayed next to the post... I never bothered to go through the code, but one could do that and then understand :-)
Someone approached me with a payment, on comment that he was unable to understand at all:
....best part: I could not explain it to him. :D
75% of what it shows, goes to the one who wrote the text.
25% goes to those who voted the text.
That 75% is then divided into 4, with one part going to the wallet as steem power, and three parts as steem dollars.
This is incorrect.
The author's cut is divided by 2 not 4 ( 50 / 50 )
One half ( of its US$ value ) is paid in sp, the other in sbd.
On top of that, some witnesses publish a 'bias' which means instead of getting the US$ quote for 1.000 STEEM to calculate the payouts, they calculate based on for example 1.2 STEEM ( 20 % bias ) and calculate your SBD payouts accordingly.
This will effectively give you more SBD than were shown in the 'payout'.
The idea is to stabilize the price by minting more coins to meet the demand.
"One half ( of its US$ value ) is paid in sp, the other in sbd."
The current value of STEEM is about a third of SBD. I always get 3/4s of the number in SBD and 1/4th SP.
That is coincidence. If you select 50 / 50, it is 50 / 50.
However, my explanation above doesn't make much sense, now that I have read it again ...
If the payout shows 10 $ after taking off the curator's cut, then you will get:
5 US $ worth of SP
5 SBD (+some extra because some witnesses publish a 'biased' feed at the moment)
What's here not to understand? The curration cut here is below 25%, which is the maximum a curration cut can be. Am I missing something?
Great post :)
Good information. I am a newbee myself. Still got to understand more about it.
Correct once what you said that ,,, I also wonder ya ,,, my payment was then $ 15 but the time of entry into my account only $ 9 3 for SP 6 for Sbd the rest either running where.? While the $ 2 curator is there, but my money is $ 4 longer go where ..?
75% of what it shows, goes to the one who wrote the text.
25% goes to those who voted the text.
That 75% is then divided into 4, with one part going to the wallet as steem power, and three parts as steem dollars.
So yesterday I got 15 dollars in love for me 9 dollars while for the curator 2 dollars was made. Then 4 more dollars got me where ...? If you say 75% ... And why not just log in to my account ...? That's one of my friend's problems ..
From 15, 2 were given as curation, 9 as SBD reward and 4 as STEEM Power. If you go to the wallet you will see them. If not, go to Rewards.
my friend 9 it is the number of both on the four again it don't know where.?
The post value can fluctuate a lot during the seven days before payment, depending on STEEM price but also on how many "good" new posts are published and voted... Out of a $15 displayed payment, you should expect roughly 3.75 to go to curators. The rest is fluctuations.
3.75 is it for what.? For steem or or for Sbd only or even for both...
It is 25% of 15. So it's the curators' cut.
The piece for the curator was already showing $ 2 but the problem is 9 have entered 4 again do not know where to go.?
Wauhhh...at least I have some light. I just see payout then curators for some steem dollars without knowing what they are meaning.
I'm still a new steemians but believe that slowly i'll be on the truck
Thanks for this, answers all the question i have regarding payouts!