I have began working with @cass and a number of other users on a Steemit Educational Programme. We are all working on simplifying some of the more complex aspects of Steemit into an easy to understand guide. You can see @cass's work on this project here and here
Consider this post a very small start to this project...
Over the past few weeks, I’ve heard a number of users asking this question, but for many, there is still a lack of clarity on the topic. I’m going to attempt to simplify Vests, in a way that everyone can understand;
This is how I understand Vests…
What are Vests
Steem Power is essentially Steem held in a fund. Vests are Shares in that fund.
Further Explanation
I'm going to refrain for providing definitions on Steem, Steem Power, Steem Dollars, however if you would like to read a little more on these topics, I have posted previously here.
For every Steem Power that exists, a corresponding Steem exists. With Steem Power you have limited liquidity (you don’t have access to your underlying Steem immediately), and you have zero transferability (you cannot move Steem Power anywhere). In exchange for these limitations, users get rewards for there long term commitment to Steem(it) in the form of extra Steem Power.
This is similar to many financial instruments in the real world. There is often a trade-off between larger rewards, but diminishing access to your wealth.
Vests are shares in the Steem Power Fund. If a user takes no action on the Steemit Platform, his/her shares will remain static in quantity, just like shares in a financial fund. Also, like shares in a financial fund, the underlying asset base can change with new investor’s joining, other investors leaving, or fund performance being good, but non of these action change the amount of shares you hold in that fund…
How does you Vest balance Change
- You can Increase your Vest’s balance by; Creation, Curation or Powering Up.. You could also be a Witness/Miner
- You can Decrease your Vest’s balance by Powering Down
Powering Up essentially creates new Vests. This action does not reduce the value of other users Vests, as the share creation is relative to the Steem investment.
Powering Down destroys Vests. This is an on going process at the moment with larger levels of Powering Down compared to powering up. Total Vests Decreased by 0.56% last week
To find out how many Vests you have;
www.steemd.com/@username
Hope this helps
Feel free to suggests amendments where you feel necessary. And look out for the following icon (designed by @cass) for follow up work on this project
Your "shares" stay the same, but if more people are joining fund grows bigger and your actual"share" of the fund is diluted. So your SP is diluted if you do nothing and if marketcap does not grow people actually lose money on SP. I think a lot of people do not understand this part.
No, this is not correct.
Your shares (VESTs) stay the same and if more people join, they add STEEM to the fund at the same time as they receive new shares (VESTs) so you don't get diluted.
Much needed info here thnx for the clarification lots of conflicting info here.
You have just described share dilution!
https://www.investopedia.com/terms/d/dilution.asp
Not exactly
Hello from EOSYS BP Candidancy.
Actually wondering about is it possible to fixing the Dan Larimer fan bot.
Because there are several group he joined and talk active.
like (https://t.me/EOSGov,https://t.me/BPInfrastructure,https://t.me/jungletestnet)
also if it is open-source tool, can we use that code :"
Of course you can use that code !
Here is the github link: https://github.com/DestBest/EOS-Daniel_Larimer-TelegramFanBot
Don't hesitate to create a better / more complete version of it
I think the definition of share dilution is a bit too general.
[...] making each share less valuable.
The above last part should not be there or should at least not be there in such a definite form. A less definite form could be:
[...] sometimes making each share less valuable.
In conclusion, I would agree there is no value dilution because of the market cap increase due to the STEEM added to the fund, but there is definitely some share dilution because the following part of the definition still stands:
When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company [...]
Very interesting to know. Thanks !
damn 1$ for a single upvote?
thats pretty neat.
GIVE FREE UPVOTES.
sorry. (not sorry)
You pointed out something.... Thanks
is this still the case?
No, it is not
One tricky question : When more people join the fund, doesn't it imply that market cap would be increasing because to join the fund you need to buy steam first ???
I think it will do. It will contribute in mining of steem. FYKI 'steam' should be 'steem'. Thanks.
Excellent post! I have been waiting for a post that explained Vests better.
Thank you, you educated me.
Another useful topic would be upvoting. I do not think new users understand the limits on upvoting and its relationship to STEEM Power (and Vests). I see a number of new users upvoting on a lot and depleting their voting power. Curating does depend on a person's accumulated STEEM Power (and Vests) too. Many minnows will school around a post only to have a bigger fish come in with an upvote to acquire a good portion of the curation rewards. Having a big fish upvote does reward the author but it also diminishes curation rewards of the first person to recognize the post. In the end it does come down to understanding curation, the 30 minute rule, and use of voting power (which diminishes with each upvote, especially after 20/day). Not understanding the rules may frustrate and discourage first time users.
In the end good quality content should have its rewards. Of course there is the 4 blog post per day limit too. After which your rewards diminish.
New users should also be taught why the rules are in place. For example, some of the rules are in place to favor human users over bots. Understanding why the rules are in place is important too.
Thanks again, and I too am a supporter of the STEEM Education Program.
Steem on,
Mike
Hey Mike, you have uttered my voice too. I have also vague idea about up voting as I am novice steemitian. Thanks.
I use https://www.steemworld.org/@layesmia to monitor my voting power.
Currently there is a 30 minute rule in place that you need to be aware of when upvoting.
Have a great weekend!
Steem on,
Mike
This is exactly what we need Mike. Thanks for your post!!!
Thank you, I have been thinking about this a lot of the past few days. When I get some time off, I plan to put together a few posts with many cross-links and accolades to other information posts found on SteemIt that new users may not be seeing.
Steem on,
Mike
So if we sit on our asses and do nothing (don't curate, and don't get payouts from posts) our VESTS stays the same but our steem power grows with platform growth (excluding what other users do)?
Did I get it?
You got it @leksimus
Then thank you for an excelent explanation. I think that we need a solid explanation on steem inflation connected to this education program.
Thanks for that @leksimus, I will add that into the agenda
Great initiative and nice simple explanation of vests! One of the problems with Steemit is that it does have a bit of a learning curve if you want to master the more subtle aspects of the platform, and you have to go hunting for that information. It's not instantly accessible at your fingertips. I've been a member of the Steemit community for just a few weeks now, and have spent a considerable amount of time searching around to get to the point where I now feel I have a basic level of competence with the platform. Hopefully your work will ease the load a bit on those users yet to come!
Exactly what @cass is trying to achieve with this project. Hopefully we can create a one-stop shop for Steemit Education..
That was very good article about steem power and vests. I completely support steem education program. I think, there is still a huge need to promote steemit among poor or mid level people so that by sharing their life story, they can earn and can have good life for themselves. This will not only increase quality content but also there will be huge growth in hiererachy of steemit users.
I want to participate in your program, but I write in Russian (read in English) . Is that possible?
I can help the Russian-speaking community. I have translated several articles about the economy Steemit.
I can see value in using your translation skills at the very least. I will let @cass know when I speak to him next. Assume your steemit.chat user name is the same as here..
Thank you! To me still difficult to chat , I can not translate very quickly)). But I am learning.
You allow me to make a translation of this article?
i could do the GREEK translations.you can see here what i already did in GREEK,i created STEEMIT.GR just for educating reasons https://steemit.com/steemit/@steembeast/steemit-gr-just-launched-steemit-com-s-little-brother
Great. Thanks @steembeast
Can you also do a post explaining what rshares are? I saw in github that hard-fork #13 said that only accounts with rshares of 50 million counted towards votes. I notice on steemd, when you look at the value of votes for a post, it lists rshares - but I can't find an explanation of what they are.
I will get that done @aenor
Nice. Have anything on voting power yet? I'm working on the ultimate voting power guide and I'd be interested in collaborating with you guys.
DM me with it once you have posted. Sure we can use your work (collaborate with you) @biophil :)
I think all the time we are inVESTing in building Steemit will be rewarded handsomely
Hah, I see what you did there. ;-)
Would it be correct to say that vests are STEEM Power's representation on the Blockchain? (Or vice versa?)
I am happy that I found this post.
It was driving me nuts not to find what Vests meant
I think one crucial piece of information is missing: What is the ratio STEEM(SP) to vests when powering up/down?
More Steem Power makes more SP as well as SBD via your increased ability to influence when participating. Cool beans, I can get my head around that.
UPVOTE. Steem on.
this is like D.A.R.E..awesome!
Very interesting project, I'll be watching you, and more interesting posmotet what happens, good luck to you
nice!!! cass's designs are cool. Can anyone contribute?
Definitely. I will keep you in the loop. Still early days at the moment..
Awesome explantation, I didn't know too much about it. My next goal is 100 million :D
This post has been linked to from another place on Steem.
Learn more about linkback bot v0.3
Upvote if you want the bot to continue posting linkbacks for your posts. Flag if otherwise. Built by @ontofractal
everything that help the community, specially the new users , will help them to take action on curating activities and all what is needed to make Steemit stronger. Thanks for this project!
por fin lo encuentro jeje lo busque tanto
Where do the vests come from when I power up from blocktrades? Is this from people selling their vests to me?
Very helpful and easy to understand as well.
Kisses
That's so much clearer. Thank you for your explanation and it's definitely confirmed my commitment to never power down. Steem on.
According to https://steemd.com/@canadianmgtow I have 4580 Vested. I have no idea if 4580 is tiny or big? Some milestone numbers and their meanings would really be useful, and not just a vague promise of 'growing shares'
https://steemit.com/interest/@sigmajin/understanding-the-steem-economic-system-vests-sbd-steem-dilution-interest-and-all-those-crazy-things
Bascially steem grew your vests tripled worth more on powerdown
Thanks for the answer I looking for.
Nice explanation. Could understand better.... Thanks ..Pls send links to your new articles.... Thanks!!!
This post is why I think some upvote rewards should be possible even a year after posting! You've explained something to me I didn't understand yet, and now complete do :-) Thanks!
This was the only post that was able to give me an integral understanding of vests. Thank you for posting
I have found this content through googling the term 'Vests'. I am 100% clear now about it. tnx.