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RE: Who pays for the blogging and curation rewards? (Part 1: STEEM POWER)

in #steem • 8 years ago (edited)

It is important the Steem(it) users and investors have an accurate understanding of how much debasement is accrued yearly to fund the various rewards paid by Steem, 77.5% of which is for blogging and curation rewards.

where is the 77.5% number coming from?

iiuc its 65 point something without liquidity rewards and 49% and change with liquidity awards.

  • Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
  • Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
  • Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
  • POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater.
  • Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater

so without liquidity rewards its 2/4.0476 = 49.4%

without its 2/5.0476=65.6%

For that matter, where does the dual cap come from from? If were talking fixed production per block....

8 years ago in #steem by
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     8 years ago  

    where is the 77.5% number coming from?

    3.875% + 3.875% = 7.75%. From the white paper:

    This in turn means that, over the long term, the nominal rate will rise from 800 STEEM per minute to the (time-varying, supply-dependent) value needed to maintain a constant annualized growth rate of 10% for the Contribution Incentives, and a constant annualized growth rate of 100% for the combined effect of the Contribution Incentives and the Power Incentives.

    So 7.75% ÷ 10% = 0.775, i.e. 77.5%

    so without liquidity rewards

    I understand the liquidity rewards are currently paused, but I am writing my analysis per the specification of the white paper. They may restart the liquidity rewards in the future, and anyway the difference isn't very significant.

    For that matter, where does the dual cap come from from?

    I don't know what you are referring to by "dual cap".

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       8 years ago (edited) 

      OKOK. i see what youre doing... but this isnt really correct.

      The blogging and curation rewards alone are just 7.75%.... the SP incentives caused by those blogging and curation rewards are the rest of that 77.5% (ie the 9-1 ratio again)

      By dual cap,I meant that its either 1 steem per block or 3.875% I don't see how it why this number would ever vary... unless its a function of the decreaseed POW rewards.

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       8 years ago (edited) 

      The blogging and curation rewards alone are just 7.75%

      I wrote in the blog, "how much debasement is accrued yearly to fund the various rewards paid by Steem, 77.5% of which is for blogging and curation rewards.".

      That means of the 10% debasement of the money supply which is not just a forward split for SP holders, then 77.5% of the 10% (i.e. 7.75% of the total yearly increase in the money supply) is paid for blogging and curation rewards.

      It is a bit annoying that you were too lazy to take the time to try to really comprehend my blog and instead immediately jumped into plastering the comments with your long-winded "walls of text" incorrect accusations.

      If your attitude towards me had been more cordial from the get-go, I would have been more inspired to be amicable in my replies. As it is, I am trying to keep a smile on my face. Hope you too.

      I appreciate peer review, but please take the time to comprehend really well. Whe you shoot off accusations without taking the time to comprehend a blog, you set yourself up to make mistakes and be the one wearing the asshat. I had a very good mood from writing this blog and receiving a lot of appreciation for it. And you rained on my good mood.

      As well you have wasted some hours of my very scarce time.

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