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What controls the value of our payouts?
I used to think it was the price of steem, and an increase in its price would result in an increase in the value of our upvotes/payouts, but the price of steem dropped from about 0.88$ to 0.81$ and the value of our upvotes and payouts are still increasing. Can anyone explain why this is happening and how the whole thing works.
$0.89
7 ANSWERS

It depends mainly on the four following things:

Steem price.

Reward pool.

Feed price.

Votes received by posts.

Steem price determines how much SBD is printed. If the price of Steem goes higher, more SBD is printed. This increases the payout of posts.

The payout on posts come from the reward pool. Higher reward pool allocation of Steem will increase the payout of all posts proportionally. For example, if reward pool increases by 10% for a specific period, the payouts for that period will increase by 10%.

Feed price is what ensures the SBD peg to US dollars. This feed price can either decrease or increase the payout of posts. Feed price is set by witnesses and it refers to SBD/Steem ratio. At the time of writing this article, feed price was  @ $0.81 SBD/STEEM.

The reward pool is proportionally distributed to all posts reaching payout on a certain period based on their received rshare of votes. If posts start receiving less votes overall, then the existing posts that are reaching payout will get a little extra.

For example, suppose 20 million SP is used in period x to vote all posts equally and all of the voters used exactly 50% of their voting power. Post count for period x is 1 million. 

But in period y, only 10 million SP was used to vote posts equally and all of the voters used exactly 25% of their voting power. And post number was same 1 million. Posts in period y will receive much higher rewards then posts in period x. It won't be double since the other factors such as reward pool, steem price, feed price etc are not constant.

$58.31
Reply

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. :)  

$8.46
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5 Comments

You are probably wondering about the current increase in post payouts right now but posts value is defined by 3 things.

1) The SP of the voter which controls the amount you get

2) The price of steem which can drastically change the vote value of people and it tends to be the main influencer.

3) the rewards pool, which is what is increasing the value of posts right now.

This increase in value is happening because the reward pool was left basically unused in the days after hf20 when steem was unstable and everyone VP went down to 20%. The reward pool is forcibly redistributing it's content right now so that it gets used more, think of it like a happy accident that will reward you for your constant activity :-D

$3.12
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1 Comment

There are some things which controls the value of our post payout.

Now a days we can see that sometime our post saw us one value and after sometime or before sometime we saw that it changed. Behind this 4 important things works.

They are : -

1. The price of Steem

2. Feed price

3. Reward pool and

4. How much value of upvotes we got in our post.

This four things work behind our post payout. We don't get the payout which we saw in our post because of this 4 things.

$0.50
Reply
3 Comments

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 =  should give you around $0.86 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. :)

Reply

Value of our payout is determined by a couple of factors. But oftentimes, it narrows down into three factors :

- Number of votes you received. The number of votes you received is one of the determinants of having good value payouts. While computation of value is dependent on the amount of Steem power (vest) every user has, quantity always accumulate too.

- Amount of Steempower your voters has and the vote weight set vote on your post. The amount of Steem power (vest) that they have on their wallet determines the "value" they are giving to your post. The more Steempower they have, the bigger value they put in your post. That's why whales behaving good are essential in this platform because they have the capability to reward properly quality users.

- The price of Steem. Our post values actually is dependent on the value of Steem's price in the market. You will notice some increase and decrease on our value of payout, that's mainly because of the value of Steem in the market.

Other reason (which is situational) will be the reward pool which is happening right now. but in the coming days, our post values will generally decrease.

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It depens on how much Money you have in your pocket.

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