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RE: STEEMIT STRATEGIES: How To Maximize Profits Using Steem Dollar Tokens!

in #steemit • 7 years ago

Hi @jigstrike -- this does happen sometimes, however they are still not factoring in the STEEM POWER you will earn with the 50/50 split and the fact that if you upvote enough, you will gain exposure to new followers/whales who can additionally upvote your post (if the like it). That in itself is also where a lot of the value is :D

7 years ago in #steemit by
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     7 years ago 

    @joeparys -well said regarding SP and exposure to new reader/followers and so on. :-)

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       7 years ago (edited)

      I understand that the exposure of the upvote itself has value, but can you break down how the 50/50 split benefits you even in a negative ROI?

      My understanding of the Bot Tracker is that it shows you the total value of a vote after curation, which includes SBD/SP that the vote generates.

      So for example, as I write this I can see:

      • a 0.5 SBD for @jerrybanfield creates a bid value of $3.20
      • This is expected to return $4.20
      • 25% curation is taken from this
      • The remaining is paid to post author, ie $3.15
      • This is a -1.93% ROI on original payment of $3.20

      So then that $3.15 is split 50/50 between SP/SBD, and that's the part I get lost.

      How does the calculation work to convert the $3.15 into received SP/SBD?

      Edit: Right, I finally worked this out. In a 50/50 split the $3.15 is divided in 2. Half (1.575) goes directly into SBD and half gets converted into SP (1.575 divided by market rate), so about 0.267sp.

      So essentially that 0.5 SBD has turned into 1.575 SBD + 0.267sp... which is not a negative ROI.

      That... doesn't seem right?

      Edit #2: It's not.

      The vote value displayed in the bot-tracker is the equivalent of the (sbd + sp in USD) payout, not the potential payout figure added to the post. So, the reported ROI is mostly accurate, except for the value added by exposure.

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