Hi,
If you are like me you would have noticed that many posts indicate a payout of 10 SBD, but when the reward is received, the SBD portion is correct at 3.75 SBD, but the STEEM power is far less than 3.75 SP.
What is going on, why is this happening?
The conversion of SBD to STEEM
On steemit before any payouts occur, the value of the post is converted into SBD and SP using the steemit feed. The feed can be found here.
If you scroll down you should be able to find something that looks like this,
The current conversion rate is 2.953 SBD is equal to 1 SP. You need to apply this conversion to your payouts.
The calculation
Your post has a payout of 10 SBD and using the steemit FAQ documents we can determine the split of author and curation payouts.
The SBD to SP calculation needs to occur, this means the 3.75 will get divided by the 2.953 to give you 1.269 SP to the author and 0.846 SP will be split among curators. So after conversion the above would be:
I hope this has been helpful :)
Tinus
Thanks, this a clearly worded, quick post which made me aware of something I did not know! Keep it up!
Thank you, glad you found it helpful
This answered a question that I had on my mind for a while now, Thanks!
Happy to help :) Thanks for the support
Yeah, I've been scratching my head around this difference too.
I also noticed that if you power up steem, the conversion is roughly one to one (and that didn't help my itch at all).
So, Sbd is converted in one way and Steem in a completely different one? Or am I missing something here?
Question: What happens when one powers down? Will the value be converted accordingly, or it will be always one to one, as it is when we power up Steem?
If I understand correctly, Steem is Powered Up to Steem Power at a one-to-one ratio. Likewise, Steem Power can be powered down to Steem at a one-to-one ratio.
Steem can be exchanged for SBD at the conversion rate, or vice versa.
This is a confusing topic and I'm not sure whether your calculation is correct.
It can't be right when you say 3.75 SPD worth of SP goes to the author which you say equals 1.269 SP/STEEM
As at today 31/12/2017
So 1 SBD at the moment is more valuable than 1 SP/STEEM
In fact using the figures above 1 SBD will have the same value as
2.33 SP/STEEM (7/3 = 2.33)
So 3.75 SBD would be worth 8.75 SP/STEEM
I believe the payout calculation goes like this:-
Your post has a payout of 10 USD ( the payout figure is listed in USD and not SBD)
The USD to SP calculation needs to occur, this means the 3.75 will get divided by 3 ( this the average price of STEEM over the last week) to give you 1.25 SP to the author and 0.833 SP will be split among curators. So after conversion the above would be:
This is why at the moment it is very worth while choosing the 50/50 rewards option when you make a post because you can convert the SBD you receive to 2.33 times more SP than you would have received had you chose the power up 100% rewards option.
So in the example above you can convert the 3.75 SBD you receive into about 8.7 SP, which is what I do while the price of SBD is high.
You are confusing the feed price with market prices, they are unrelated. I can explain why, but it was not the purpose of the post
Thank You. I would like to understand exactly how this works if you have the time, maybe later in the week, it being new years eve now.
I just could not understand in your example how 3.75 SBD converts to 1.269 SP when SBD is move valuable than SP at the moment.
I was totally pulling my hair out over this and knew it had a conversion factor somewhere but was thinking it was based on the price of STEEM.
Thanks for clearing this up.
Pleasure
Useful info thanks
Glad it has helped
I noticed this discrepancy. thanks for posting this explanation.
This post has received gratitude of 0.46 % from @appreciator thanks to: @boontjie.