How does upvoting help sustainability when you're returning greater value than the upvote was? Is it because the program is better than average at getting curation rewards?
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How does upvoting help sustainability when you're returning greater value than the upvote was? Is it because the program is better than average at getting curation rewards?
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It is indeed because of that. 37.5% coverage from curation implies that we are able to recover 37.5% of our voting value in curation rewards. Since only 25% of vote values goes into curation, that means we are 'outperfoming' by 50%.
1.34x voting rewards may still be too high. We temporarily decreased it on comments already (to 1.15x) to help VP recover. Sustainability Coverage just dipped below 100% today, although I will double-check all the data before making any changes to member rshares growth rates). This also means we will actively power up instead of leasing delegations until Sustainability Coverage rises above 100% again. If that results in another decrease in VP below 15%, we will further cut voting rewards to 1.25x on regular updates and 1.10x on comments until VP recovers.
It's all a fine balance and we have a lot of levers we can pull now, though the impending loss of conversion income means we are not in quite as strong a VP position as we would like to be when shifting to power-up instead of delegation.
What's really great is that you are essentially doing all the hard work of making the most "profitable" decisions for the whole group. It also makes me feel better that I stopped doing the SBD conversions myself, because it means there was a teensy bit more time that SBI could profit by it.
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I don't know that any individual level of conversions has a big impact on the total time that they are available, but maybe a little impact. SBD is still below $1, the profit failure of recent conversions has been because of a pop in STEEM price (we calculate everything using STEEM as our base currency, so a pop in STEEM price results in an unprofitable conversion, even though it would have been profitable still if we used USD as the base currency for calculations).
Me encanta poder vivir sin tener que hacer un trabajo que no me gusta: ¡gracias por difundir un mundo nuevo!
!sbi status
Hi @pedronel!
Did you know Steem Basic Income has a Quality Policy?
I was wondering the same thing. Maybe it’s just a cheaper way to get steem and sp than delegating?
Cheaper in the long-run, but it does have a short term 'cost' in that we need more voting power up front.
Can you maybe make a post about it? Maybe dumb it down so I understand 🤯🤔
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We can cover those trade-offs in a future post in this series if @ecoinstant is up to the challenge. If not we can cover it separately.
It was between this and the break down in delegations. Those are looking to be the next two. We can start with voting!
Agreed. Good call to tackle the more complicated one first!
I'll be interested in seeing the answer to this, as well.
I'm gonna guess it has something to do with timing as you suggest, but also that curation rewards become part of "owned" SP, and hence that's SP that doesn't have to be leased, which is an expense. It's tiny fractions of a cent, but multiplied by thousands it adds up.
=^..^=
That's the basic idea. The question is whether it's cheaper to lease the additional voting power needed every time, or cheaper to lease a little extra up front to provide upvoting rewards. With our 'above average' curation rewards the extra expense up front is covered.
Realistically we should make upvoting rewards a parameter too (set at author rewards + curation rewards, but using our curation % instead of assumed 25%). In this case that would be 75% + 37.5% = 112.5% as a sustainable upvoting reward multiplier. This is something I will investigate further.
Making the different reward aspect paramaters that we can manage based on the performance of different areas is easier for us to maintain sustainability, but more complicated to explain to members.
Instead of 'the reward is always this' in the FAQ, it would be 'the reward is based on this complicated formula and constantly changes'. It's better to overpay a little and build a reliable base of upvoting members than to overmanage.
I love you, guys! <3