Wow! That's a dense article! I'll have to bookmark it and read it again to make sure I understand it well.
What I do not get is this - "By Powering Up your STEEM to SP you gain a 1.369% passive “interest”.". What do you mean? How do you get it?
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meep
Hi @gmt117!
Your question made me think of one factor I may have entirely over looked, that could affect the "interest rate". The factor is the SP:STEEM-ratio of the communitys' collective holdings. The mentioned 1.369% is a minimum at a ratio of 1:0. I'm now thinking the "interest" may be higher. I will do some research and make an update/post about my findings.
THANK YOU gmt117! Questions is the best kickstarters for the brain!
But first I will answer your question:
All newly created STEEM goes into one pool. This pool is distributed like shown in Tabel 1. 15% of the pool is divided evenly to everyone holding SP (divided per SP, not per holder).
You may have noticed that your SP is slowly constantly increasing. This is the mentioned "interest". I keep using quotes because it's not the most precise term.
How do you get it? As long as you keep ypur earnings in STEEM POWER you will get it automaticly. And I can see that you do =)
Oh that's cool! I did not notice it at all actually. My SP is quite small and I keep increasing it piece by piece by my activity here, so I did not notice. It's cool!
It's confusing, because in the Wallet under SBD it says that there's 0% APR interest, so it did not even occur to me that there would be any for SP! Getting smarter every day!
Thanks for your article. It's great! I'm looking forward to read more from you! It's very interesting to read more of these kind of articles that go quite into detail how Steem works! 👍👍👍
Yes, I too was confused by the 0% APR in the wallet, while in posts people was talking all kinds of different rates. That was the main reason is decided to dig into this myself. BTW, the wallet is correct about the APR on SBD and STEEM in you savings, but it does not say anything abou the SP rate.
Like I mentioned to you in the first reply, I was going to look into a possible mistake I made. Here's a link to what I did:
STEEM #1 Dilution of STEEM & How to Break Even (INTEREST RATE CORRECTION)
Do you know if delegated Steem also accumulates this interest rate?
It does, and the accumulated interst will add to your SP for voting.
However, the interest is accumulated on the deligated portion. This delegated SP can be pulled back by the owner at any time. When this occurs, the accumulated SP on what was delegated will go with it.