Depending on how much Steem power you have in your account, you could be earning anything from fractions of a penny to hundreds of SP per second.
Steem power accumulates interest at a rate of 0.0066% per day
So if you have 1000 Steem power today, and don't earn any rewards, tomorrow you'll have (1000 balance * 1.0066 interest rate = ) 1006.6 Steem Power
That gives us a daily rate, but what about hourly, or by the minute, or even by the second?
Well, there are 24 hours in a day, so if we if we take our interest rate of 0.066 and divide it by 24 we get 0.000275
For minutes, we divide that again by 60 (because there are 60 minutes in an hour), to get what my calculator shows as 4.583333333333333e-6
and for seconds we're going to get a really tiny number - divide by 60 again (for 60 seconds in each minute) and you'll get something like 7.638888888888889e-8
Whichever value you want to get the interest rate for - I'm using seconds here - add 1 to it, so now I get 1.000000076388889 as my interest per second. The 1 is to preserve our original value as we multiply the interest onto it.
Now copy the resulting value to your calculator memory, and type in your balance. Hit multiply, then put in your interest rate, then hit enter.. that shows you your new total after 1 second.. and hit enter again, and again, and watch it grow. That's the power of compound interest! :D
Incidentally, the value needed to earn about 0.001 SP/second seems to be somewhere around 9000 SP
I think my maths(*) make sense here, but I'm not really great at this stuff, so I've I've screwed up somewhere let me know.
(*) That's maths, as in "I did my maths wrong and got too much aluminium. And it's the wrong colour, too. Shit weather, innit? Fancy a cuppa? Toodle pip, tally ho, chocks away old chap!"
Edited: Fixed several places where I referred to Steem Dollars instead of Steem Power. Thanks for pointing that out, @ungratefulchump
Thanks for all the math you did here! Good post!
Great post, I love watching my Steem Power go up every time I refresh :)
Question: Is the interest rate decreasing every day since the inflation rate of Steem is decreasing? That's something I've read on here but wasnt clear in the whitepaper unless I misinterpreted it or it's been updated.
That's something I've never been clear on myself, and would love to know. I should probably go re-read the whitepaper. I had a skim through it before I first signed up here, but I didn't really grasp the concepts at the time. It would make sense to me that it would have to decrease over time though because frankly 0.0066%/day is ludicrous.
If you look at the biggest whale accounts, they're earning mind boggling amounts per day in interest. That surely can't be sustainable?
On the other hand, I really love watching my balance, modest as it may be, go up.. I don't really want to see that slow down any :/
Haha yeah I wouldnt think its sustainable either but I'm not 100% sure. It seems to be an elusive answer! Love how detailed your post was, thanks for breaking everything down so thoroughly.
Haha, you can thank my primary school teachers for drilling it into me to always show my working. I find I have to do that anyway, otherwise I'll lose track of units and screw something up.. I no maths so good :)
really like this post, is it still like this? @noodhoog
Yes, I think 0.0066% per day are still correct, but the calculations in this article are wrong ..
1000 * 1.000066 = 1000.066 SP would have been correct.
Thanks for sharing with us this formula @noodhoog!
Time to calculate my Steem Power interest per second.
Cheers!
I believe it isn't base on a percentage but instead several different factors such as how much of it was transferred to your account and also how much was earned from mining or content curation.
I originally got the idea to work this out based on looking at some growth graphs on steemdown and noticing that the baseline seems to be 0.0066. I didn't look at that many accounts though, so it may be that it varies in ways I've not seen.
I am sure that if you get a big enough sample, or a consensus, you will see an average percentage. My point is it isn't a fact you will get 6.6 Steem power (You said dollars, but I believe you meant steem power) in your example of having 1000 steem power.
Thanks mate, you have really made my day. I didn't know I was receiving interest.
OMG YAY!
"Incidentally, the value needed to earn about 0.001 SP/second seems to be somewhere around 9000 SP"
LOLZ - only 8980 SP to go
Thank you ! I have been wanting to know this. What with my whole 10 steem power and all im bound to take over the world ! Hahaha !!
I dont know if you said it and I didn't see it, but how often does this interest gets applied? Evry second, day or year?
Also if you power down does it stop the interest from being applied?