A very nice question. When an author declines a payout, neither the author or the curators get rewarded. As to where the supposed rewards goes to, I don't know. But I think, supposed rewards stays in the reward pools for others to claim. Hope you question is well answered
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Thank you. Wondering why I see 470 votes on a declined payout post. Guess those upvoting and wasting their voting power do not know this. I guess the reward gets burnt the same way they burn steem to promote a post.