Voting Power and Bid Bots

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Hi Steemians,

I have been writing about upvotes, so now I think it’s a good time to write about Voting Power. This is usually called “influence” on the platform and in a practical sense it means how much Steem or money your vote is worth. Our voting power is determined by how much Steem power we have, which is the amount of Steem we have converted to Steem power. Your voting power is usually expressed as a percentage.

We all have ten votes per day at 100%, but making a vote reduces your voting power by about 2%. So while the power of your first vote is 100 percent the next votes are reduced by approximately 2% each vote, so the second is 98%, the third is 96%, etc until your at 80% and then it takes 24 hours to regenerate your voting power back to 100%. So ten votes, 2% drop in voting power with each vote and 24 hours to regenerate your voting power to 100%. That’s the first thing to understand about voting power regeneration.
For example, someone with 500 Steem Power might have a maximum vote of 0.02 Steem when they are at 100% voting power. Then the next vote is 98% or 0.19 Steem with the next vote being at 96% and 0.18 Steem.

The next thing to understand is it takes 24 hours to regenerate ten 100% votes but only 2.4 hours to regenerate one 100% vote. So the Bid Bots wait one tenth 1/10 or 2.4 hours between each of their 100% votes. So instead of voting ten times and waiting 24 hours, the bid-bots vote one time and wait the equivalent of 24 divided by ten or 2.4 hours. This waiting gives the bid-bot back their true 100% voting power every 2.4 hours. So that’s why the bid-bots wait 2.4 hours for the next vote.

The third thing to understand is that you can give out percentages of your voting power using the slider. So if the Bots 100% vote is 10$, it can give out one 10$ vote every 2.4 hours or two 5$ votes every 2.4 hours or four 2.5$ votes every 2.4 hours or ten 1$ votes every 2.4 hours. But once the total bids equal 10$ there’s no profit left in that round So basically the bits accepts bids and assigns fractions for a certain amount of Steem or Steem Dollars until it uses up the equivalent of one 100% vote and then it waits 2.4 hours to vote again.

This is brilliant because the votes cost the Bot their initial investment of Steem, but after that the votes regenerate for free. So the Bot owners make Steem every 2.4 hours, 24 hours a day, 7 days a week. So they sell votes which they make on posts and get the fee paid for the vote, but because they are voting on the post they also get curation awards for voting on posts. This feature of Steemit attracts investors to buy and hold Steem or causes other Steemians to invest in the Bots to make money each day. Most other coins require investors to sell their coins and cash out to realize any profit, but Steem doesn’t so it’s unique in that regard. This anti-dumping feature can potentially help stabilize the price.

Now while only people with technological knowledge can make and run Bid Bots, those who lack this knowledge can still profit from Bid Bots by delegating their Steem Power to Bid Bots which are open to outside investors. In order to invest in a Bot which is open to investors you would delegate Steem Power to them. You can find a list of Bid Bots open to the public and their rates of return for the most recent week by clicking this link http://www.steemd.com.

I hope you find this knowledge useful. I don’t write this to promote Bid Bots, but to make you aware of their existence, so you can decide if you want to earn Steem by investing in Bid Bots. They are legal and you have a right to invest in them, if you choose or you can choose not to, the important thing is that you have a choice, but only if you know about your choices.
Remember, Knowledge is Power!

If you know something about Bid Bots not covered in this article or you wish to share information here or your opinion on Bid Bots please leave a comment below.

Steem On!
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