The Steem algorithm works in a way where 10 full upvotes get recharged every single day. This means that making a full upvote every 2.4 hours is the most optimal way to use your Steem Power since you will always upvote when your voting power reaches 100% and you will never run out of it (This is exactly what bid bots do). Calculating how much 1 STEEM is currently worth in daily upvotes can be done with the Steemit Upvote Calculator
(The numbers change based on current Steem Price)
1 Steem Power = 101.28 / 1000000 = 0.00010128$ Upvote Worth
10 x 0.00010128$ = ~0.001$ Daily Upvote Worth
1 STEEM = ~0.001$ Daily Upvote Worth
Support Groups are great for people on Steemit that want to make a bit of extra income from blogging about the subjects they are passionate about. After all, Steemit is mainly a blogging platform. This can be quite the challenge especially if you want to have a real blog here writing about a rather niche topic that is not centered around Steemit or Crypto which most people are interested in here. Groups basically allow Steemians to get some basic daily income on their posts without having to hope for the rare dolphin or whale upvote to get some post earnings.
The main idea is to have a central account that upvotes the people that have shares in the Steem Power of that account. The total Steem Power of the account will at any given time be at least worth 10% more compared to the individual shares combined. Every time the account has grown to a specific point, new shares become available at an increased price which offers similar entry value because the account got bigger. This way, the minimum return existing members get from their shares increases each new level. There will be many mechanics in place to grow the account and give extra value to shareholders.
| Level | Open | Shares | Total | Share Price | Total | SP | Add | Need |
|---|---|---|---|---|---|---|---|---|
| 0 | 176 SP | 50 | 50 | 3.20 STEEM | 160 | 336 SP | 16.0 | 9.0 |
| 1 | 361 SP | 50 | 100 | 3.28 STEEM | 163 | 520 SP | 16.3 | 12.7 |
| 2 | 549 SP | 50 | 150 | 3.33 STEEM | 167 | 716 SP | 16.7 | 17.3 |
| 3 | 750 SP | 50 | 200 | 3.41 STEEM | 171 | 921 SP | 17.1 | 21.9 |
| 4 | 960 SP | 50 | 250 | 3.49 STEEM | 175 | 1134 SP | 17.5 | 26.5 |
| 5 | 1178 SP | 50 | 300 | 3.57 STEEM | 179 | 1357 SP | 17.9 | 31.1 |
| 6 | ... |
Row Explained for Level 2
Once the owned SP in the @upvoteshares account reaches 549SP, 50 Level 2 shares become available for 3.33 STEEM each and there will be 150 shares in circulation in total. Those 50 Level 2 shares bring in ~167 STEEM that will get powered up after which there will be 716SP in the account. 10% extra gets added by me (16.7SP) which makes the account needing to grow 17.3SP in order to reach the next level. This cycle repeats over and over again each time getting a bit more difficult because all previous levels need to increase to the value of the new level.
All The Columns and Numbers Explained...
Level
These are the different levels. Every time the account reaches a predetermined amount of SP, the next level will unlock and more shares will become available to acquire.
Open
This is the SP that the @upvoteshares account needs to have powered up in order for a new level to open. There will always be at least 10% extra SP in the account compared to the latests share price. The calculation for this number (Total Shares x Share Price)*1.1
Shares | Total
There will be 50 shares available each level, the reason for this is to limit the supply so they can mainly ge granted to accounts that behave properly on Steemit while keeping it all managable. The Total Shares number increases by 50 each round. (In case the steem price would increase a lot, the shares can be split)
Share Price
The absolute price of 1 share will always increase by 0.08 STEEM every new level, but the relative price will always be similar where the SP in the account devided by the total amount of shares is worth at least 10% more. By keeping the increase amount fixed it actually decreases a bit percentage wise each level.
Total |SP
The total price of all shares sold in each level. (50x Share Price) Once a new level opened and all shares are distributed, the collected STEEM will be used to Power Up. Each level is fully funded in advance which creates extra value to each shareholder and makes the account close to the number it needs to reach to unlock the next level.
Add | Need
10% on top of the total Steem that comes in will always at least be added as my investment. This creates extra value and increases the progression rate. The Need column is the amount of Steem the account has to grow in order to reach the next level. This will mainly come from curation rewards, post earnings or an extra investment done by me.
| - | L0 | L1 | L2 | L3 | L4 | L5 | L6 | L7 | L8 |
|---|---|---|---|---|---|---|---|---|---|
| L0 | 1.100 | 1.117 | 1.145 | 1.172 | 1.200 | 1.227 | 1.255 | 1.282 | 1.310 |
| L1 | - | 1.100 | 1.127 | 1.154 | 1.181 | 1.208 | 1.235 | 1.262 | 1.290 |
| L2 | - | - | 1.100 | 1.126 | 1.153 | 1.179 | 1.206 | 1.232 | 1.259 |
| L3 | - | - | - | 1.100 | 1.126 | 1.152 | 1.177 | 1.203 | 1.229 |
| L4 | - | - | - | - | 1.100 | 1.125 | 1.150 | 1.176 | 1.201 |
| L5 | - | - | - | - | - | 1.100 | 1.125 | 1.149 | 1.174 |
| L6 | - | - | - | - | - | - | 1.100 | 1.124 | 1.148 |
| L7 | - | - | - | - | - | - | - | 1.100 | 1.124 |
| L8 | - | - | - | - | - | - | - | - | 1.100 |
| L9 |
This table shows the progression rate of how much your share is worth relative to the Steem Power in the account. No matter at what level someone steps in, there will always be at least 10% extra SP in the account you get upvotes from. The share of someone who stepped in at level 2 will have increased to a point where it is at least worth +25.9% in the upvote they get returned and this will continue to grow as long as this project runs. The price of steem going up or down has no influence on any of these numbers.
Entry Cost 0.300 STEEM / Share
Most upvote groups heavily rely on getting (monthly) funds or upvotes to buy delegation to make their upvotes worth something. While I am not the biggest fan of this, I would make each share come along with a one time entry cost of 0.300 STEEM that will be fully used to buy some 90 day delegation to increase the upvote worth and allow for a minnow sponsorship. At later stages, new members will get a bigger share of the upvotes that are not used to counter the entry cost until the next level is reached.
Exit Cost 0.200 STEEM / Share
Shareholders will remain having promised ownership of their Steem that got Powered Up in the account. There will never be Power Downs until the project decides it's better to stop or is forced to stop somehow. (on which everyone can claim and get back their initial Steem investment obviously.). It is still possible to exit the group and get your Steem back by selling your Share to someone else (There will probably be auction posts on the @upvoteshares account in the future to do that). As a mechanic to prevent too many of these time consuming transactions and a way to create extra value for existing shareholders, 0.200 Steem worth will be burned from the shares that are sold. Since Buying from someone else instead of from the program does not require an entry cost they will be prioritised In the end it will be up to supply and demand.
Example:
- Someone Gets 1 Share at level 2 for which they paid 3.60 Steem (3.30+0.30)
- They want to sell their share at Level 8.
- The price of 1 share at level 8 = 3.78 Steem
- (3.30-0.200)/3.78 = 0.82 Shares at current price.
- 0.82 shares are worth 3.1 Steem and can be sold based on supply and demand.
This is basically a small cost for shareholders that give up on steemit at the benefit of existing shareholders since the amount of shares go down which increases the value of each share.
The idea of having +10% extra SP in the account and the numbers above are all the bare minimum and there will be quite some mechanics in place to create extra value for shareholders...
Core mechanic of rising share price
This is constantly increases the value for existing shareholders as the value of the account increases. This will probably go slow but steady.1100%+ Distribution
Not every shareholder will end up making a daily post. When you skip a day, you know your vote will be redistributed to the other shareholders and the other way around. There will be minimum requirements in place when it comes down to quality and proper steemit behavior for shareholders so none will go to empty posts.Pre-Funded Levels
Every new level starts off close to the next level being reached since the first level got funded in advance and new steem that comes in directly Powered Up. In the early stages this makes a huge difference and provides a lot of extra value !Minnowshares Sponsorship
Every Upvote Shares comes along with 1 Minnow Share. The @minnowshares account has 500SP in it and will give daily auto-upvotes to minnows that got sponsored until the point the next level is reached which brings a new cycle to this mechanic. Someone who collects 6 or 7 Minnow Shares will be able to trade them for a non transferrable Upvoteshare.Inactive Shares
To provide for the upvoteshares that get claimed for minnowshares in the future, there will be many inactive shares. All shares of level 0 are reserved for this and will stay inactive for probably a really long time. These shares also paid the entry cost which was used for extra delegation to the account.@minnowshares delegation
The minnowshares account will stay at 500SP and all earned curation rewards will be delegated or moved over to the @upvoteshares account to give it extra value.Post Earnings
I intend to make weekly update posts on the @upvoteshares account. Those post earnings will be used to grow the account faster or even lease some extra steem power to give extra value to the shareholders.Destroyed Shares
People who ends up giving up on Steemit and sells their shares provide value to existing shareholders since part of their share gets destroyed.Extra Personal Investment
The number in the table of added Steem is the bare minimum of 10% on top of what comes in. In reality I will likely be tempted to put more on top of that to create a steady growth....
This initiative is an experiment as a way to create a program I would be happy to be part off and use myself along with a way to see if it is possible for a group support account to get worthy curation rewards on the made investment in a fair and transparent way. All upvotes will be done at the 24th minute which takes ~20% in curation rewards that will be used to grow the account. All the needed info to calculate the true return will be open and available at any given time.
WARNING
I am aware of the major flaw in the entire system that there is a central failing point of the person who holds the private key since Steem needs to be send in order to take part in this project. Unfortunately there is no other way and my intention is to do this so everyone is satisfied and I have no intention whatsoever to scam anyone.
Thanks !
This is very well thought out and I am planning to buy some of that shares once you are ready. I also know I can trust you on things like this since we are more or less planning to stay here on Steem for a long time.
Honestly there are just too many details to take in. XD I have a little quick question though (sorry in advance if I may have missed it in this post or you will be creating another post for it):
I have checked the @upvoteshares account and it is currently sitting at 543 natural SP. Based on your chart that will likely put us at Level 2 once the account is ready, with 150 Total Shares available and a Share Price of 3.33. Now unto my questions:
Will there be a limit as to how much one can buy shares? Seeing as their still is no numbers as to how much 1 share will be worth in upvotes, but if it is guaranteed to make a little profit in return, people will likely buy those shares in no time.
At say Level 2 with 150 Total Shares, what happens when only 50 shares are sold? How is the upvotes then distributed?
Will you do the adjustments manually or all these will be automated? If manually, everyday or weekly? I appreciate what you are doing but if all of this are manual, this will be very tiring :)
Just to make sure this is lifetime daily upvotes right?
Thanks for the interest and reply jlordc, I know it's quite a lot to take in.
yes, the idea is to be open only for members who use steemit in a constructive way. One of them will be the extend in how much they give back to the steemit community. What I had in mind is to set the maximum amount of shares an account can get based on their owned SP. It would make no sense for someone who owns 15SP to get a share to basically support themselves while they are not even in a situation to support others. 1 share for each 40-50SP owned I would set the number at. Shares will also become incactive in case there is a big power down or lease. So someone having 1000SP getting 20 shares who afterwards goes to delegate 900SP to a bid bot will see 18 shares go inactive seeing the worth of those upvotes go all other shareholders. (shares can be sold at any given time though). The idea is really to reward the ones who are on steemit for the long run.
once the account reaches 549 SP, 50 shares will become available. the 100 first shares are allready "sold" Level 0 are all inactive shares that will be used to convert minnowshares in the future (more on the sponsorship part will come in a later post). Right now they give extra value to existing shareholders. Level 1 was uses to give out some permanent shares and some test shares to see it it all works properly. Soon some of those shares will be given away in some contests. So level 2 has 50 shares that will become available. even if only 1 of them gets sold the program will still easily meet the minimum requirements of having at leat 10% extra SP in the account. 549SP+3.33SP = 552.33 / 150 shares = 3.6822SP in the account for each share. all the shares not sold will be added to the existing shareholders upvote worth so in that case each share would be worth 549SP+3.33SP = 552.33 / 101 shares = 5.468SP
I right now am using Steemauto. The idea is to do it manually. Since it is done in batches and the SP needs to reach a minimum amount in order to open the next level I expect it to all be very managable. The supply is very limited and looking at steembasicincome there is quite the demand for something like this so I expect it not to take too long for a level to be filled. After that it's just a matter of calculating the upvote % of each shareholder, add it in Steemvoter and let the programm run on it's own until the next level is reached. I'm not sure how long it will take but there will always at least be at least 2 weeks in between.
Lifetime in as long as the program runs. In case it ever comes to a point where it stops everyone will be able to claim and get back the steem during the 13 week power down period.
I hope this answers your questions!
I will consider this, but I don't know how well this will fit my contest posts.
It's though when giving away the SBD from each post even though your posting style itself would probably be the most optimal one rarely missing a day. It's al a bit similar to qurator and make-a-whale, everything can be calculated at any given point with this group. More details will be posted soon. No matter what you already got 1 share that will stay in place after the test period is over.
A very detailed explanation @costanza!
While I need to reed a few more time to get the complete picture! Let me know when we can buy shares!
Cheers,
Peter
Me too, the amount of detail is amazing though, but is too much to take in at once.
It's quite a lot to take in yes.
The short story: If you plan on staying on Steemit for years to come (and you thrust me not running away with your steem), being part of this group is a no brainer because the minimum upvote value your share represents goes up each time a new level is reached.
Just to makes things clear, I can vouch for @costanza!
You are one of the most genuine people here! So hell yeah, count me in!
I will buy some shares for sure, just let me know when I do need to start with saving so that I can buy at least 5!
Cheers,
Peter
This seems very nicely thought out, and I'm glad to be in the early test phases of it. I really like the levels idea, ensuring that the project doesn't get filled to a point where votes aren't worth much because of the VP drain.
Thanks, that's the idea. Have everything planned in advance and just execute things based on the scalable numbers. It's still somewhat of a question how fast or slow the progress will be but we'll see once it starts off in a couple weeks. I really have the intention to run this for at least multiple years seeing it grow steadily and have a way to re-invest some of the steem I earn on this account.
I honestly have no idea how this will work out in terms of profitability/earn back time of investment. Nevertheless if possible I like to participate. Because I like experiments.
In general terms I have 2 remarks:
1: there is not such a thing as free money. So whatever the return should be, it won't make any one millionaire.
2: leasing SP burns money. As paying for the lease is more expensive as the value of the upvotes. So in the long term this is not sustainable.
sorry for the late reply. Since the steem that is send is not lost the main question is which is more profitable. Having it in a group account which grows much faster since extra is put on top with a lot of mechanics in place to increase the value for the shareholders or have the steem in your own account. All the celculations can be done and the main question is how fast the account wil grow.
I hope these answers makes it all more clear, thanks for the feedback
You got a 100.00% upvote from @votefun thanks to @rishi556!