I was discussing with some of the minnows in the P.A.L. Discord channel about the way payouts work and how and why to choose which payout methods and when they are best. Today I'll break down the way payouts work and what the difference is between SBD (STEEM DOLLARS) and STEEM POWER. You can actually make more or less money depending on how you choose to receive your payout. I have seen lots of tips about how to create flashy posts and how to gain a following, but I feel we still need more posts teaching the intricacies of the system and how to handle the business side of things. If you find this post useful, please resteem and share it with all of our new incoming minnows. Sometimes the waters look safe, but remember guys, you are swimming with sharks, whales, dolphins, and I think there is even a narwhal somewhere in this pond. Knowledge is power!
When you create a post, there's an option to select how to receive your rewards!
Most users assume the 50/50 split default is always the best option.
Depending on your needs that may be the case, but keep in mind there are circumstances you may not be aware of. The price of steem which is on a 1:1 ratio with STEEM POWER and the price of STEEM DOLLARS (SBD) are both flexible and while the SBD is supposed to equal $1.00 USD, this is not always the case. There are a few ways to find out the relative prices of the two tokens and make the best decision! Some users will recommend sites like https://coinmarketcap.com/ which is not a bad option at all, but we have a built in market place on steemit that many users are unaware of and allows for some good deals for the financially frugal minnows out there!
Okay, so you may be thinking at this point, "What do I care, I just want my money as fast as possible!" I get it, we all have our reasons and I won't debate them with them you. However, you should realize that the 50/50 payout default can't base both prices off the USD value. What happens is the payout you receive is based on the USD value of the STEEM token. If you follow me so far, this means that you have two tokens worth a different amount of USD being calculated on the value of one token. If the price of STEEM DOLLARS (SBD) is higher than one USD then you make more money by doing a 50/50 post! If the value of SBD is lower than one USD, then you make more money doing a 100% power up. This can also work inversely if STEEM becomes worth less than the price of SBD! It's important to know how the system works to maximize your rewards! Unless we receive a new hard fork change to the way payouts are calculated, then you need to realize the amount of tokens you receive is based on the USD price of STEEM so that you can determine what gives you the most tokens at a particular time! Hopefully this helps some of you! Namaste.
I think this is not obvious to most steemit users, and I'm glad it is the default option.
It's really not necessary to understand all this to make a living on steemit!
True, but if the prices shift, you don't want to only recieve 75% value for your post payout either. Remember things are always fluctuating.
I'm unclear on this- how (or even why) would I devote much attention to current market value when the payout value is probably not that closely related to it due to volatility?
I agree with you completely about paying attention to the fraction (and user-controlled voting power), but my reasons are different- I want to reward to the degree I value others' contributions.
This post has nothing to do with voting. It's about posting. When you make a post you can get paid in 100% STEEM POWER or 50% STEEM POWER and 50% SBD. When SBD is worth more than $1 and less than STEEM, you are doing better to do a 50/50.
I agreed as 50/50 is best at beginning and to end as you said Remember things are always fluctuating.
I had no idea you could do this, thank you!
Thanks again for the info, I have seen a few posts about this but it is always good to hear things from a few different angles. I was personally converting my SBD to Steem and then into SP using the normal wallet and losing out on a lot of value as it gives you the rate of 1SBD = $1, when the trading price has been well above $1. I did not know that I should sell my SBD for Steem on an exchange and then Steem to SP. I have been using blocktrades to do so and it works great!
Do you mean if I convert steem dollar to steem via internal market do I need to still convert it to SP or I leave it at steem? Please I need suggestion I just converted my steem dollar to steem
Very logically and clearly explained. And while converting steem dollars to steem it's always important to use the internal market as s you mentioned too. I myself lost a lot of money while directly converting SBD to steem from the wallet. Thus thought I should specifically mention this for others to take notice. Good post. Cheers!!!
I am still learning this site but from your post i get something which is helpful to me in feature. As you described in post i think right now we have to choose 50-50 because 1 SBD = 2 USD but some people said in features steem will go high value.
Right, my bet is still that STEEM is your best long term value. Right now however, you can get more by doing a 50/50 post and using your SBD to buy more STEEM.
Can't forget the Narwhals who aren't minnows but aren't sharks/dolphins or whales....they swim slowly but have a big horn!
LOL Narwhals and their giant horn of "mystical and unknown" purpose.
Great info...it will help people out!
Nice article...I'm going to be selling my SBD on the open market now not just converting, Thanks!
Great heads up! Im learning more and more about Steemit and its different payouts every day. This platform is INSANE!!
Actually, another Steemian also advised me to do that and it does sound logical :)
Helped me! I like making informed decisions.
meep
BEAKER
meep
meep
meep
meep
It helped meep too!
meep
Thank you for that. It was very informative. Namaste.
I always posted with 50/50, now I know that I did the right thing! ;)
Great for newbies, invaluable information that most fail to grasp in their early Steemit life.
I'm just trying to understand.. so you are saying it's better just to use the market function as opposed to 50/50? I read some whales saying it changed and they decided 50/50 was better in he end.
I'm saying it changes depending on the value of each coin. The price your payout says can be more or less than what it says if you pick the right or wrong choice!
I think right now because Steem Dollars are worth more than Steem, it is better to take rewards in 50/50. Then if you want to change those earned Steem Dollars to Steem and power them up, go on the market and use your Steem Dollars to buy Steem and power it up. With current prices I think this ends up with a better result. But the situation can reverse if Steem was higher value than Steem Dollars. Some smart person please correct me if I'm wrong on this.
Correct.
Just select 50/50.
You will get 30% more than 100% steem power!
As of now, yes, next week that could change! Make sure to keep an eye on the prices!
Thanks for the post! I was already selling my steem dollars on the market for steem power but at least now I know why and how it works.
Very in forming. I will resteem this post thanks this will help thanks
Good Content, Helps New bee.
Ha! I've been staring at that drop down for a while trying to make heads andtails of it. THank you now it makes much more sense. Cheers x
Lots of great info! Thank you for posting, a lot to learn as a minnow.
You'll get it! It becomes thoughtless after a while. New things just require us to get comfortable with them! If you ever aren't sure just ask!
Thanks :) and very fast reply as well! I upvoted and followed Look forward to seeing more of you
This is a great article for me. I don't consider these things enough. I just write, reply and check my wallet several times a day.
Since I first got here I converted everything into Steem power. Now I have a few SBD I like to have a quiz at the bottom of my article and the first one to actually see it and reply I can send them some SBD. Haha! It's cool.
Thanks for the post. upvoted followed and resteemed.
Thanks for posting such a great lesson. Important to learn these details that make such a difference over the long haul.
WOW I just started a few days ago and my post made no more than a few cents each ....I think this information will definitely help me make some choices. I really do appreciate this info. I am not in this for money however. I am just introverted and blogging is a good outlet. followed and voted
Currently, the best option is 50/50 payout, because SBD is worth about $1.45. So when you convert the SBD to SP, you gain about 35% more compared to a 100% SP payout. Also, another point to consider is the STEEM market price, it's been stable for a couple of weeks now (around $2), which also plays in favor of the 50/50. Check this post for more details https://steemit.com/steemit/@jerrybanfield/steemit-authors-earn-37-more-steem-with-50-50-payout
I did the math today for my recent payouts, and they checked out. I gained 35% from the SBD to SP conversion with blocktrades.
Agree. I say choose the method that fits your needs. If you need to have a certain liquidity from post earnings, then go with 50-50. Question though, will the SP and SBD valuation be based on payout date or on posting date?
Very true to choose which you need the most. I just wanted everyone to know how to tell which one is more lucrative. The payout of your post is averaged over the 30 day price of STEEM right now.
Oh, cool to know. Thanks for sharing!
So
If SBD > USD, go 50/50
If SBD < USD, go 100% Steempower
If Steem is worth less than SBD....?
The first two are correct if STEEM is worth MORE than SBD.
And if Steem becomes LESS than SBD?
Just go the opposite?
You would have to ask me then because it's based on the USD price of steem. But in general yes, that's how it's worked in the past.
I had no clue about any of this... thank you for sharing your insight with us @clayboyn
Never even thought of this before. Thanks for this :-)
Thank you for your valuable information. I also wanted to ask if there is a limit on the number of posts that should be adhered to per a 24 hour period. I saw a video that said that but that was the only place I have heard or seen, is that true?
No limits anymore.
Thank you so much... (it was an old video)
I dont make a living on posts but for those who do this is important! Taking a potential 25% haircut on your small business income could be huge! Good post.
This is helpful. I'm still struggling to understand this part of Steemit. A question though: On Coinmarketcap, Steem has been trading at $2.11 while SBD is trading at $1.67. Doesn't that make Steem more valuable (and therefore Steem power?). I think there is a critical piece I'm still missing.
If your share of the reward is worth $100 and you 100% power up, then you get $100 worth of steem or 47.3933 steem. If you do a 50/50 post you get $50 worth of steem and 50 SBD (not $50 worth of SBD) so you get 23.6967 steem and $83.5 dollars worth of SBD. You get an extra 33.5 dollars by doing a 50/50 currently.
Ah, I get it now! Thanks, this is very helpful. Thank you!
MAD value drop right here 👊 💣
Great info brother man!
Thank you for this info, I was totally unaware. I upvoted and resteemed
Ha! Another knowledge added to a novice like me, thanks much for the detailed information.
My problem with this, and forgive me being the devils advocate, is that you can't cash out on a post for 7 days after you post it meaning you are telling us to predict the markets 7 days in advance. Now I decided to check up on a post that I had recently posted and after you post you can't change your payout method meaning your post bases assumptions on SBD that it will stay the same for 7 days. Now I haven't spent much time on steemit but when I look at the markets for SBD and STEEM in the past 7 days alone they are volatile, they don't sit perfectly still and fluctuate frequently (even if it is just minor perturbations it still is to volatile to make a blind guess. That is my only argument with your post, otherwise it was a good read. Thanks for the share!
There are long term trading ranges. Look at the prices a few months back and it's inverted. There are even stretches with SBD being under a dollar. While it isn't a guarantee the price of SBD can't flash crash, the price of steem is based on a 30 day average. As long as you are reasonably confident that SBD is going to be worth more than $1 and less than the cost of steem then 50/50 is the best option and has been that for weeks.
Okay that makes more sense, sorry if my response seemed ill-informed. Thanks for the reply!
meep
Good information! Resteemit!
Great breakdown. I appreciate it. I will say that market page is a little intimidating lol.
Just signed up and am still trying to make sense of how this all works. Thanks for the info. It is much needed.
Good to know this .
Thanks for sharing this @clayboyn
Thanks mate for sharing
My point of view : Steem Dollars are worth more than Steem, it is better to take rewards in 50/50.
Thanks for sharing
Really good post
Have a great and sunny sunday
Thanks for the info, i think now SBD is > 1 USD, so we're good ! :D
True, right now 50/50 is for sure the way to go, just make sure you keep an eye on it!
yes, always my friend :D
This is very helpful, thank you and I will begin taking this factor into account. it demystifies things a bit. Following and resteeming.
Thanks for posting this. I really had no idea how this all really worked.
This post has been ranked within the top 25 most undervalued posts in the first half of Jun 25. We estimate that this post is undervalued by $56.23 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Jun 25 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.