You are viewing a single comment's thread from:

RE: Boost Steem Value by Backing Steem Dollar

in #steemit8 years ago

I'm telling you the math..

if the data is correct then it means that my steem power will keep growing while my vest will keep decreasing which means I will have unlimited steem power.

If you're powering down, every week the same amount of VESTS are converted into STEEM for you. You'll be left with less VESTS although it probably "worth" more STEEM (shows as SP). You won't have unlimited steem power, since there is a turning point.

When you started powering down, you get MORE liquid steem every week. For example, if you have 10400 STEEM worth of SP at first (which is actually X amount of VESTS but the exact X doesn't matter), now you started powering down. To be simple, assume the conversion rate increases by 3% every week (actually current value is about 4%, but the speed of increment is slowing down day by day, the final speed at equilibrium is about 0.7%)

  • the first week you'll get (10400/104)*(1+3%)=103 STEEM out, leave 10400*(1+3%) - (10400/104)*(1+3%) = 10400 * (104-1)/104 * (1+3%) = 10609 STEEM worth of SP in your account
  • the second week you'll get (10400/104) * (1+3%)^2 == (10609/103)*103%=106.09 STEEM out, leave 10400 * (104-2)/104 * (1+3%)^2 = 10,821.18 STEEM worth of SP
  • the third week you'll get (10400/104) * (1+3%)^3 = 109.273 STEEM out, leave 10400 * (104-3)/104 * (1+3%) ^3 = 11036.543 STEEM worth of SP
  • the forth week you'll get (10400/104) * (1+3%)^4 = 112.551 STEEM out, leave 10400 * (104-4)/104 * (1+3%) ^4 = 11255.088 STEEM worth of SP
    ...
  • the 50th week you'll get (10400/104) * (1+3%)^50 = 438.391 STEEM out, leave 10400 * (104-50)/104 * (1+3%) ^50 = 23673.093 STEEM worth of SP
    ...
  • the 100th week you'll get(10400/104) * (1+3%)^100 = 1921.863 STEEM out, leave 10400 * (104-100)/104 * (1+3%) ^100 = 7687.453 STEEM worth of SP
    ...
  • the 104th week you'll get(10400/104) * (1+3%)^104 = 2163.074 STEEM out, leave 10400 * (104-104)/104 * (1+3%) ^100 = 0 STEEM worth of SP in your account. But if you didn't set withdraw route in advance, you can't even transfer the 2163 STEEM to another account. However you can stop/cancel the powering down at any time before your VESTS hit zero, but after that when you restart powering down, it need another 104 weeks to complete, which means you'll get out less STEEM every week (in comparison to the number before stopped powering down).