Are post payouts a little confusing at times? - YES
Yesterday I made a post about why you should NOT power up 100% to gain the maximum about of Steem Power per post. It seems that this was news to a lot of people. Since there were a lot of questions about it, I thought it would be best for me to make a video explaining some of it.
UNDERSTANDING CURRENT POST PAYOUTS
You may see that I inserted the word "current" in the title there. This is because post payouts fluctuate. Basically, there are three options for post payouts that the authors can select.
- 50/50 Payout (default)
- 100% Power Up
- Decline Payout
The 50/50 Payout setting pays out half of the post in Steem Power and the other half in STEEM, SBD, or a combination of both.
The 100% Power Up option pays out the entire portion in Steem Power.
The Decline Payout option prevents the author from receiving rewards.
Since the payout system takes into account the fluctuating value of STEEM, adjustments are made in the amount of STEEM and Steem Power that posts pay out. However, SBD (Steem Dollars) are treated by the system as if they were $1 USD each at all times. Currently SBD is valued at $2.00 USD even on Bittrex.
This means that if a post was going to pay the author $20, and they selected the 50/50 Payout option, half of the post would be paid out at 10 SBD. Those 10 SBD could then be traded for $20 USD, which means that the post would have actually paid out at $30 to the author, not $20.... For those trying to accumulate Steem Power, it would be better to select the 50/50 Payout, then trade the SBD for STEEM and power the STEEM up manually, since you would be getting more.
I go over a real life example in my post from yesterday if you are interested.
It can be a little confusing, so I do my best to cover more in the video to help you understand. Also, if the value of SBD dropped below 1 USD, then the 100% Power Up option would be better.
Until next time…
Don’t waste your time online, invest it with steemit.com
Bro you are a mentor to me and was one of the 1st people I followed. The jewels you drop on us on weekly/daily basis are invaluable for a newbie like me. Thank you for the effort you put into your post. On the grind!
I'd like to say the same, thanks for this bomb of knowledge you just dropped, I followed and re-steemed on my page since I'm new and I promote a lot of new people to Steem from Instagram and Facebook so this will help them out also so I want to say thanks again - Unil we Steem again, LykenCrypto- 😎😎😎✌🏽
I am glad to hear it. I try to help others with what I can, glad that you like it and find it helpful.
Thank you brother!
Thanks for the clarity. #steemhelp posts are always right up my alley. Couldn't help but notice you were in a hotel...
Left the family at 2:30am yesterday to go to work, hoping to be home by midnight tonight... Hotel last night.
Where do you work?
thanks @papa-pepper for enlightening me about the way the post payout goes currently, it has really been helpful
In this example, it becomes the difference between getting $20 worth of Steem Power for a $20 author rewards portion of the post payout and getting $30 worth of Steem Power.
Always glad to help!
thanks @papa-pepper for sharing and acknowledging my comment. i'm honored
I try to acknowledge the comments, but there are so many some days! Thanks!
my pleasure sire
I think the most important thing to keep in mind about post payouts (and the specific amounts being payed) is that your earnings are deceptive in the sense they don't factor in the growth of the value of STEEM! Imagine you were paid $0.10 worth of bitcoin per hour in 2010 everyone would tell you it's obviously a waste of time to make that amount of money, and then a few years later you're a millionaire because it's value had increased. In the same kind of interface it would tell you a post had earned $0.10 when in reality it had earned much more. This is especially important for new users to keep in mind before getting discouraged at the amounts they are gaining, it may not look like much now but just keep going and eventually it could be much higher than you expect.
Yes absolutely! Momentum and keep going forward is what makes the difference in the long run...
Thank you for that, I was asking myself and the community the question that you answered in your post. Will link your post there. https://steemit.com/steemit/@flurgx/discrepancy-about-steemit-authors-payout-question-need-your-help
So it's better to go 50/50 yes
Yes this does work. Run to the exchanges and buy Steem with your overvalued SBDs.
Lol, it sure does work!
One important thing to remenber is that, the pendulum swings both ways. You could wake up tomorrow and find SBD trading at .80 cents. Then you'll have to change your strategy.
Absolutely, I mentioned that.
Gotta watch it again.
It was the last sentence of my post actually...
My bad.
Congratulations @papa-pepper!
Your post was mentioned in my hit parade in the following category:
Thanks papa, you've cleared things up again!
This is precisely what I found out yesterday the hard way!
But thanks for your great article!
You're welcome @skytrex!
Good shit Thx Papa!
Thank you for the breakdown Papa.
Please Steemians remember, you are liable for taxes on this as well as profits made during trades from one coin to another. This has become a major issue for my brother and I as we trade a lot and do Steemit. You should be consulting a tax professional regarding all of your gains because it can get confusing & add up fast.
Oh no tax man showed up! Run =)
Unfortunately there is nothing you can do about it right now. Until the laws are changed and/or alt coins become legalized currency, like BTC in Japan, that Tax man will be in your pocket.
trade under Offshore LLC covert to USD, LLC sends check to you, cash ..Happy ... no IRS ?
Actually looking into this.
or sends gold, sell for cash, and if you pay for things in cash no money trail ! NO irs unless selling over certain amounts ... and yes, viable, being done everyday by people and corps
Under the strictest sense of the law, United States citizen owes taxes on anything sold or traded. If traded we owe taxes on the value of items exchanged.
That is the strictest sense of the law though. No one really enforced it to the point that it has disappeared from the minds of most people. Ask your tax accountant about it.
@ 56 yrs old .. .gov been stealing my money all my life, LAW ? who cares, done getting robbed. Paying like ? 50-80% tax on every $ made ... time for everyone to just NOT do this ..
Not saying it is fair but it is the world we live in. I am reading an investment/biography book and the author calls money we work for "50% money" because by the time we have any left, it is half of what we started with (after income tax and the various sales taxes regular citizens pay).
Very true.
Nevada just made a new law preventing taxes on bitcoin.
Federal law still applies.
Sucks.
It does, so people have to know about it.
You're a good man.
Thanks so much @papa-pepper. Now I need to go figure out how I can sell my SBD on one of the exchanges. I'm sure someone has posted about it on here! Thanks for all your help, really accelerated my education on how steemit works!
Thank you, Papa, for this clarifications. I'm only here since little more than a month and far from understanding, what makes your posts very precious to me. Keep on steeming, bro!
Thank you for the information! Very useful :)
I knew people have noticed about this indeed. Yesterday wrote similar post regarding payouts
https://steemit.com/steemit/@deividas/100-power-up-option-pays-you-less-then-50-50-option-think-before-you-choose
Its always nice if someone will clear up something about a steemit, thanks!
Thank you @ papa-pepper. The "blond" is trying to understand everything. In what circumstance would you decline payout?
If you want to make a really important public announcement or share an important news piece to which you've added little to nothing.
Thank you Papa, that was a great rundown, will return to watch over again!
Glad to hear it! Be blessed!
@papa-pepper I want to say a very big thank you for this impacting post. When i join steemit few days ago and was about to make my first post, i saw those option but had not idea what they meant i left it at default, because default was the best option for beginners like me. Now I know what they meant after going through this post. Is now time to control my earnings . with every post made. Kudos sire! #Stayingpositve #appreciation
Great information as always.
the payment system here can be very tricky for newcomers and this article simplifies it greatly. Resteems it, keep it coming :)
Firsst :)
I was really trying to be first :D nvm, maybe next time :D
Thanks you for this:)
Thank you for explanation! @papa-pepper
very good explanation , tanks
Thanks for the info. Every little bit helps us newbies :)
Great video papa. Very usefull for new users. Steem on my friend!
Awesome post bro! I WANT A T -SHIRT!!!!!!
Good advice sir, @papa-pepper
Thanks @papa-pepper this is a huge help to newbies like myself who are trying to figure out how this whole things works.
Keep up the good work and I might even understand it all one day :)
A great post for showing to new Steemians!
I think I may need to hire a steemit financial advisor. Thanks for the post and video.
Oh..that's much clearer ta!!
Wow thanks @papa-pepper. Took me a bit to understand but I think I got it... 50/50 way to go. Thank you .. up steem
Thanks! After yesterdays post where you mentioned to not power up 100% I was confused AF. Today you cleared it all up! You are more like papa-steem here for us. Showing us the way. Thanks a lot!
Thanks papa , I am new in here... getting to know the basics, articles such as these are very enlightening...
Thank you @papa-pepper i learn something new every time
I just got my first payout yesterday, so this is timely. Not a fortune but better than FB. Thanks for the info.
Well if I ever get the chance to make any money this is good information to know.
That is a nice "trick", thanks for the explanation. I hope they won't change the system. Keep them coming because lots of new people are joining this wonderful platform, and in the beginning it may seem a little bit confusing, so posts like this are very helpful.
I'm glad that I'm new enough that I just go with the default 50/50. Your prior post and current video make the payout methods very clear. Thanks for the education!
Clears up a lot of things I was wondering about. Thanks
Thank you so much for this! I was told to check out your videos, and since this just came up in my feed, it was the first one I got to watch.
Very helpful indeed! I have made a few mistakes already - converting SBD to Steem (lost half of the value in the process...) and powering up 100%.
No more! :)
But just to be sure... the value we see shown underneath each article, and also at the bottom of our wallets - is that SBD or USD? That still confuses me...
wonderful suggestion. I always use 50/50 payout option.
However, I've forgotten to inform you that I won the nomination which you helped me to win. Thank you very much. Here is my post you may look into https://steemit.com/writing/@royalmacro/unbelievable-truth-there-is-a-300-page-novel-without-a-single-letter-e
Very informative....thank you.
Thanks @papa-peper for this great info. I'm still trying to get my head around the three types of rewards, and which is strategically best to pursue. So this video comes in super handy... once I've received my rewards.
What would you suggest, when is it best to claim the reward? As soon as it is available, once a certain chunk has accumulated, or is it best to wait till the price is high?
Will I ever learn all this.. wow
Thanks for following up on this critical issue. For how important this is, it really isn't highlighted that clearly in the current system. I guess the SBD being over $2 was never really the intention.
With three different kinds of currencies, most of us need some explanation! :)
@papa-pepper, thanks for this explanation.
I figured it out before now, that's the reason I never used 100% powerd up.
Can you you please check my appreciation post about?
Thank You For The Info, It Was Confusing !