What controls the value of our payouts?

in #steemit5 years ago (edited)

View this answer on Musing.io

The price of Steem is only one of the many factors that affect a posts potential payout. To better understand this, one must know how a vote is calculated here on Steem. If I am not mistaken there are three factors Steem uses to calculate the worth of an upvote given: rshares, reward_balance and recent_claims 

  1. rshares - This is the most important factor that controls the value of an upvote. Everytime someone casts a vote you are really not giving that person $$$ but is giving them some rshares proportional to their upvote weight and Steem Power. The higher their upvote weight and Steem Power are, the more rshares the upvote carries.
  2. reward_balance -Reward Balance or the Reward Pool is the maximum allowable liquid Steem that can be distributed to all content creators. Around 75% of the new Steem mined and created weekly goes into that reward fund. According to SteemBlockExplorer currently the Reward Fund is at 971,932  STEEM. So the more people creating content on the platform (or the more upvotes), the more people will be splitting that liquid Steem. 
  3. recent_claims - Like I said above, the more people creating content and being upvoted, the more people to split the reward fund. Recent_claims is the value of shares (?) being claimed at that time. According to SteemBlockExplorer recent_claims is at  416,599,490B 

The calculation is estimated to be: (rshares / recent_claims ) * reward balance = upvote value 

Taking your question as an example to which was voted by @musing.

( 456386174899 / 416,599,490,000,000,000) * 971,932 =  1.06475485062 STEEM

And converting that Steem to SBD which is based on the past 3-day average price in the market (which was around 1 STEEM = 0.827 SBD) =  should give you 0.88055226146274 which was around the upvote of your question here 

If the prices remain constant and if there are no other people trying to get a piece of the total reward fund then it will remain $0.86 until post payout. However with the market fluctuating too much there is a possibility that it will change. Also, less and less people have been posting daily which means more Steem for us since less competition. :)  


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Also, less and less people have been posting daily which means more Steem for us since less competition

Wow, now I see the reason why I have high payouts. Thanks for this wonderful explanation

Hi @jlordc!

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Informative & helpful post from you dear.

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Congratulations! This post has been upvoted from the communal account, @minnowsupport, by jlordc from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

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