Must-Read Series of TRX Integration: First section: Things you must know about TRX Voting.

shaobizh (59)in #trxintegration • 4 years ago (edited)

Background

On December 3, 2020, Steemit officially announced the news of TRX integration. Affected by this good news, steem soared by 50%, which is an exciting news.

First of all, let's summarize the new features in one sentence: users will get a 1:1 ratio of TRX reward while earning SP. At first glance, is it a bit similar to airdrops? Yes, the principle is similar to airdrops. TRX is an extra reward. Based on the currency price of the creation time of this post, it is equivalent to providing users with an additional approximately 17% reward. So, what is the monthly TRX reward pool? Since TRX and SP are distributed as 1:1, TRX’s reward pool and SP’s reward pool are the same, based on Steem’s current volume (assuming that all users’ reward is set to 100% SP), every month The reward pool is about 1.7 Million, so the amount of TRX is also 1.7 million, i would say this reward is really attractive. then what are you waiting for? Posting immidiately and get rich~

Regarding the TRX earned by users, besides sell in exchanges, what are the uses case? First, let’s take a look at the official recommended functions. Please see the screenshot:

In fact, there are many scenarios available for TRX. In the steemit wallet, there are mainly three recommended functions, The focus of this post is the voting function. let us take a look at the the function brief as follows.

Transfer: As the name implies, this function mainly for the transfer of TRX, which can be transferred to other Steem accounts or to the TRON address. Note : to complete this step, you need to enter the private key of the TRON account to complete the signature.

Trade: Jump directly to Poloniex, this is not the focus of this article, let us leave it to future posts.
Vote: At present,the system would like to promote this voting function, and the "APY8%+" is marked next to it, which means this vote will bring user above 8% income anually. So how can we earn this 8% income? What matters should be paid attention to, I will explain them one by one next.

The principle of voting revenue

Speaking of TRON voting revenue, we need to firstly understand the issuance mechanism and incentive mechanism of TRON.

Currently, TRON produces a block every 3 seconds. When new block is generated, a total of 176 TRX will be issued, 16 of which are used to reward the super representative of the block producing (SR is called as witness on Steem, the top 27 witness are super representative who will produce block in turn). The remaining 160 TRX will be divided among the top 127 super representatives according to the proportion of votes obtained. so far, seems all the additional TRX is distributed to the witnesses, then how can users get the rewards, then look down.

The super representative can set a brokerage ratio and distribute the rewards to the voters according to the value of the brokerage ratio. Each super representative can freely adjust this ratio. The default value of the ratio is 20%. Here, 20% means that 20% of the rewards will be kept by themselves, and the remaining 80% will be distributed to all voters based on the number of votes.

Let us have a rough calculation based on this rule, let us assume all calculation is based on the default value: 20%, let us see how much each vote is worth. The following calculation methods are excerpted from TRON official documents. If you want to know more details, please visit the link https://developers.tron.network/docs/mechanism

Total Rewards = Vote Reward * brokerage ratio+ Block Reward * brokerage ratio

Voting statistics counted every 6 hours, with SRs changing based on vote results.
For top 27 SRs, the block producing rewards are :
16 (TRX/block) * 7200 (blocks/election) * 4 (elections/day) = 460,800 (TRX/Day)
For each super representative, the daily Block Rewards = 460,800/27 x 20%
For top 127, the voting rewards are:

160 (TRX/block) * 7200 (blocks/election) * 4 (elections/day) = 4,608,000 (TRX/day)
the worth of a reward of 6 hours is:

worth of a reward of 6 hours = 80% * 7200 (block/election) x 160 /total votes + 80% x 7200 (blocks/election) x 16 / 27 / sr votes

It also depends on which SR you vote, if the SR rank is 28-127, the calculation should be:

worth of a reward of 6 hours = 80% * 7200 (block/election) x 160 /total votes

The value corresponding to each vote has been calculated above, then the value of the vote can be calculated by directly multiplying the number of user votes.

Is it even more confused after seeing so math ? Let's just talk some real things. The main content is as follows.

The top 27 super representatives will distribute the voting rewards and block production rewards to voting users according to the brokerage ratio.
The super representatives ranked 28-127 have no block rewards because they do not produce blocks. Only voting rewards, these super representatives will also distribute the rewards to voting users in proportion to the brokerage ratio.
Each super representative can freely set the commission ratio, that is to say, the super representative can keep 100% of the rewards to himself, or 100% of the rewards to voting users.

Who should i vote?

Which super representative to vote for? Of course, whoever distributes more rewards to voters is the answer. So how to find the super representative with the highest report. all brokerage ratio can be found at https://tronscan.org/#/sr/representatives , at the same time we need to look at below parts to ensure we can get as much more reward as possible.

The more rewards a super representative gets, the more rewards may be distributed to users. As mentioned above, the top 27 super representatives will earn both block rewards and voting reward , so for super representatives with the same brokerage ratio, the top 27 super representatives have additional block rewards, they get more rewards than 28-127 drugs. some.
brokerage ratio: Since each super representative can freely set the brokerage ratio, the income obtained by different super representatives is different. How to query the brokerage ratio of the super representative? TRONSCAN is the answer, take a loot at there and it will be clear at a glance. The part marked with a red box is the voting share ratio. The proportion of Binance in the figure is 80%, which means that it will allocate 80% of the TRX rewards to the voters. NEOPLY is set to 0. Means NEOPLY will get all TRX reward for himself, and the third-placed Poloniex set 100%, means this super representative will distribute all the rewards to the voters. Obviously, Poloniex is the most worthy super representative among the top three.

In addition, some super representatives will also use other allocation methods, such as SesameSeed, their TRX ratio allocated to voters is 0, but they will allocate their own tokens in proportion to the number of voters. For details, please see

Voting tour

The most easy way of voting is to do it on tronscan, here are the steps.

Log in to tronscan with your tron private key
- go to https://tronscan.org/#/walletconnect/importWallet
- Choose import wallet:
Freeze your TRX and gain “Voting power”, 1TRX = 1 Voting Power, go to https://tronscan.org/#/sr/votes
Voting: click voting, set the voting power, and click voting again.
Claim the reward
go to your wallet https://tronscan.org/#/wallet and click the withdraw button.