It was a very worthwhile discussion, because it tests the idea and checks how robust it is. I appreciate the points that you made and I would say that this proposal is not fully developed yet, some aspects will need to be developed as we go along and learn more.
All powered up steem automatically collects approximately 16%. That's part of the rules of the blockchain.
Then, the latest calculation for upvotes from SBI for SP delegated is 19.1% after curation. @josephsavage can confirm if that number is still correct. It was 2 months ago, but nothing much has changed since then.
Then, I took off a few percentage points so you'd be pleasantly surprised that it was even higher than I said.
The big point is, I worry that this sbinvest is either an "honest" scam...in that, he'll do what he says, but you should expect better. Or run by someone who doesn't really understand how steem works. 20% is less than you should expect for even just powering up yourself and voting like a normal user. It's definitely not an investment-grade return for Steem. and the fact that he "guarantees" it, but only a 95% back guarantee... Like, he could fulfill all his promises and still walk away having fleeced all his investors.
If I understand correctly, you're getting the 16% APR on SP from here:
... but this is 16.7% of total rewards distribution, or 16.7% of inflation rate more accurately. And the inflation rate is only 8.3843%, making the APR on holding SP approximately 1.40%
Which if you stack with this morning's 18.03% print on SP delegated to @steembasicincome, is about on par with a 20% return. Still... if they're making guarantees on something launched right before HF21 is released, then some skepticism is warranted.
That is correct. Active APR is significantly higher because you're effectively voting your own stake along with a proportionate share of the idle stake.
(curation % + author %) / (% of SP base actively voted) * (inflation rate) = avg active APR
Looks like I'm the one who has to eat my words and the didn't understand properly
Posted using Partiko Android
It was a very worthwhile discussion, because it tests the idea and checks how robust it is. I appreciate the points that you made and I would say that this proposal is not fully developed yet, some aspects will need to be developed as we go along and learn more.
All powered up steem automatically collects approximately 16%. That's part of the rules of the blockchain.
Then, the latest calculation for upvotes from SBI for SP delegated is 19.1% after curation. @josephsavage can confirm if that number is still correct. It was 2 months ago, but nothing much has changed since then.
Then, I took off a few percentage points so you'd be pleasantly surprised that it was even higher than I said.
The big point is, I worry that this sbinvest is either an "honest" scam...in that, he'll do what he says, but you should expect better. Or run by someone who doesn't really understand how steem works. 20% is less than you should expect for even just powering up yourself and voting like a normal user. It's definitely not an investment-grade return for Steem. and the fact that he "guarantees" it, but only a 95% back guarantee... Like, he could fulfill all his promises and still walk away having fleeced all his investors.
Posted using Partiko Android
If I understand correctly, you're getting the 16% APR on SP from here:
... but this is 16.7% of total rewards distribution, or 16.7% of inflation rate more accurately. And the inflation rate is only 8.3843%, making the APR on holding SP approximately 1.40%
Which if you stack with this morning's 18.03% print on SP delegated to @steembasicincome, is about on par with a 20% return. Still... if they're making guarantees on something launched right before HF21 is released, then some skepticism is warranted.
So a anything that beats 9% is acquiring more steem than inflation?!?
Posted using Partiko Android
That is correct. Active APR is significantly higher because you're effectively voting your own stake along with a proportionate share of the idle stake.
(curation % + author %) / (% of SP base actively voted) * (inflation rate) = avg active APR
Thank you for your help @josephsavage. Good point about HF21.
Oh! My bad, then!
Posted using Partiko Android