Steem Blockchain: STU, Reputation, Author/Curator Ratio, etc.- Steemit Crypto Academy- S4W7- Homework Post for @sapwood

in hive-108451 •  3 months ago 

Hello friends, it's a privilege to partake in this week's course presented by prof @sapwood on Steem Blockchain: STU, Reputation, Author/Curator Ratio. It was a great delivery and It's my wish to make my entry.

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(1) What is STU? What is the break-up of STU? Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout? (Screenshot required)

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What is STU and Break-up of STU

In the Steemit Blockchain, the reward system has been observed to come with several native tokens in its ecosystem. This multiplicity of tokens in the ecosystem gave an insight to the developers who codenamed the steem post payout as Steem Token Unit (STU).

The Steem Token Unit refers to the combination of different asset worth in its derivation, hence the SBD and USD values. Therefore, this is what makes up the Break-Up of Steem Token Unit rewards. These rewards include the Steem Power, Steem Backed Dollar, and Steem.

In the Steemit Blockchain, rewards through the PoB are distributed via quality content posted by authors vis-a-vis Curation activities. Therefore, Curators and Authors are rewarded in a ratio of 50:50 and this has a break-up index of the STU.

For Reward settings on a 50:50 ratio, the STU reward is basically on SBD and SP at equal proportion whereas, in the case of 100% settings, we have a singular STU of SP. There are no distributions for the Decline Payout. All these mentioned settings are subject to Authors Reward.

For the Curators, we have a singular STU value of SP for all settings except the Decline Payout where there are no reward distributions.

Most importantly, we also need to note this for the Authors 50% ratio reward distribution. 25% pays out as SBD and the balance 25% as SP. The SP is observed to be measured in USD. So a typical value estimation worth for the Author is observed to be in SBD and USD which are the major proponents of the STU.

For Example, I will be demonstrating this using a real-time scenario of my last payout.

Post payout: $53.70
Author Payout: $26.85
Curator Payout: $26.85

SBD print rate is 100% which invariably means that the Authors STU would be SBD and SP.

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Price of Steem as at payout - $0.56
Note that: 1SBD = 1USD (Internal Source)
1SBD = 7.01 USD (External Source)

Authors Reward Calculation
Authors payout: $26.85
Half of this 50% value expected in SBD: 13.425
Half of this 50% value expected in SP:
13.425/0.56 = 23.97SP

Curators Reward Calculation
Curator Payout: 50% Value payout/Price of Steem measured in USD

Curators Reward: 26.85/0.56 = 47.95 SP

Observation

  • let's remember that the Steem Blockchain upholds a 1 USD to 1 SBD ratio but this is not the same for the external Source of SBD, hence the disparity in the balance of rewards.

  • The total USD value generated for the Post payout in USD is $134.385

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But from this Calculation, we can vividly see how this was skewed towards the author's rewards. The author's reward was observed to be $107.533 (80.02%) and the Curators Reward was seen as $26.852 (19.98%)

  • Due to the price of SBD on external Sources which is observed as $7.01, this has completely had a break-out from the pegged 1SBD to USD and hence the great disparity in the 50:50 author and curator rewards. Instead what we have now is the 80:20 ratio for author: curator ratio.

  • From this illustration, we can see that the Liquidity supplied in this post payout was 13.425SBD or $107.533. This high disparity due to the SBD break-out rates in the external sources vis-a-vis the Steem Blockchain can be observed with a high percentage Liquidity distributed.

  • Percentage Liquidity Reward in this regard is;
    1(107.533/134.385)100
    = 1(0.8002)
    100
    Percentage Liquidity = 80.02%

This value is 302% higher than the required 25% Liquidity percentage to be distributed if the SBD USD ratio remains 1:1 i.e. 50% SBD /50%SP when 1USD=1SBD.

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(2) Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?

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Calculating my Reputation Score

I will have to pick up this value from the https://steemd.com/@xkool24. We can see a screen image displaying the Raw Reputation score.

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My Raw Reputation score= is 84,165,510,486,050

In deriving the actual score as observed in the Steem world.org:
Reputation = (Log10(Raw Reputation)-9)9)+25
(Default Reputation value is 25)
Therefore, Reputation = (Log10(84,165,510,486,050)-9)
9)+25
= (13.9251 - 9)*9)+25
My Reputation Score Derived = 69.326

Reputation status from Steemworld.org/@xkool24

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What percentage(of the Post Payout) was generated as liquid rewards(SBD) from your last Post in terms of USD equivalent? Explain how the rise of SBD has shifted the supply dynamics? As per your last post payout calculate the ratio of Author: Curator Reward in terms of USD equivalent?

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My Observation from question one already answered all of these questions here. Kindly find below a copy of the details for this question.

Observation

  • let's remember that the Steem Blockchain upholds a 1 USD to 1 SBD ratio but this is not the same for the external Source of SBD, hence the disparity in the balance of rewards. As of the time of this report, 1 SBD = 7.01 USD.

  • The total USD value generated for the Post payout in USD is $134.385

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But from this Calculation, we can vividly see how this was skewed towards the author's rewards. The author's reward was observed to be $107.533 (80.02%) and the Curators Reward was seen as $26.852 (19.98%)

  • Due to the price of SBD on external Sources which was observed as $7.01, this has completely had a break-out from the pegged 1SBD to USD and hence the great disparity in the 50:50 author and curator rewards. Instead, what we have now is an 80:20 ratio for the Author: Curator ratio.

  • From this illustration, we can see that the Liquidity supplied in this post payout was 13.425SBD or $107.533. This high disparity due to the SBD break-out rates in the external sources vis-a-vis the Steem Blockchain can be observed with a high percentage Liquidity distributed.

  • Percentage Liquidity Reward in this regard is;
    1(107.533/134.385)100
    = 1(0.8002)
    100
    Percentage Liquidity = 80.02%

This value is 302% higher than the required 25% Liquidity percentage to be distributed if the SBD USD ratio remains 1:1 i.e. 50% SBD /50%SP when 1USD=1SBD.

Conclusively, in the first scenario where we have the SBD breaking out of the pegged 1:1 ratio of the SBD: USD STU, the Author with the 50% SBD /50% SP settings benefit from it. But when the SBD is observed lesser than the SBD: USD STU ratio, the Author 100% SP settings benefit the more.

Hence the present scenario lays on the first scenario with the 50% SBD/50% SP settings with the introduction of the #club5050 in the rescue of excess Liquidity distributed.

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  1. Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?

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For me, the #club5050 program at this time is a yes-yes for me to go with. This is a clarion call for all of us to salvage the high Liquidity in the ecosystem. Its effects can not be over-emphasized as the value of Steem has continued to dwindle on the low irrespective of the observed bull run witnessed in the Bitcoin and other Altcoins.

The Steemit Blockchain reward system was programmed in such a way that 25% of its PoB rewards comes out as Liquid reward and when this doesn't hold anymore, then measures are to be introduced to correct this anomaly. Therefore, this is why #Club5050 is imminent and the way to go.

Not forgetting that this anomaly occurred as a result of a break out of SBD from the 1:1 ratio of the STU, 1USD=1SBD. Now we have SBD exchanging as far as 12steem/SBD as the time of this report. Therefore, I should be converting about 160Steem for 13.425 SBD from my last post payout. Figures show that the ratio of 50:50 Author/Curator is now 80:20, leaving the curator at their peril.

Consequences
1- There is an uneven distribution of reward in the system with the authors more favored
2- There is an excess supply of Liquidity which hampers the price of Steem in the ecosystem.
3- The Steem will continue to lose value or be Undervalued in the Cryptocurrency space if the trend continues
4- The Curators may limit curation activities if the trend of correcting this imbalance doesn't come out fruitful.
5- When Reward Scheme is affected due to No.4, the PoB and ecosystem may be negatively affected.

Adoption of #Club5050
The main essence of this program is to drive giving back to the system by improving and increasing the Steem Power which is an influencer in the ecosystem. When this is done, it limits the Liquidity flow outside the system which invariably decides the strength of the native token therein.

This is postulated by the law of demand and supply. When we can correct the outflow of supply from the Steem Blockchain, this would shrink the excess Liquidity found in various exchange platforms and hence Supply observed to measure up with Demand.

When Supply is controlled and the price of Steem rallies up to $1, this would close the number of Steem required to offset SBD during conversion.

My Resolution
All written posts in the community with payouts would receive an instant Power up of 50% of the recieved Liquid reward. This would be done via a post to show up this process.

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(5) Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples?

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What we should endeavor to know and note is that during Curation (Either Upvote or Downvote), this is dependent on the SP size irrespective but it comes with a relative effect on the reputation score depending on the scenario.

In an Upvote scenario where a user with a lower Reputation comes to curate my account but a with a bigger SP size, I will be receiving BOTH Rewards and Boost in my Reputation Score.
Therefore, A user with ;
Low Rep + SP Size = Reward Addition + Reputation Effect

Another scenario comes with a Downvote with the same Lower Reputation and sizable SP value. Since the user is voting for another user with a higher Reputation Value, Rewards would be Removed back to Pool but there would be NO effect on Reputation.

Therefore, A user;
Low Rep + SP Size = Reward Removal + No Reputation Effect

A representation of this scenario through a diagram below;

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Conclusion

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The present scenario signifies a shift from the Steem Blockchain reward protocol that upholds the 50:50 ratio for Author Curator rewards ratio and a 25% PoB allotted to liquid rewards. What we now have is an above 300% shift from the Liquidity rewards as well an 80:20 reward distribution amongst authors & Curators. This has created a new normal which has brought excess Liquidity supply in the ecosystem and hence a decline in the value of Steem.

To help correct system deviation, the #club5050 is to be deliberately upheld to chuckle and limit the excess Liquidity outflow from the system back to it using a power-up.

I support this program and drive and would do my best to contribute to the stabilization of the Steem Blockchain.

Thank you professor @sapwood for this great piece.

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Hello @xkool24,

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