This question was asked in Quora and I have answered this question in Quora, shared in Twitter and additionally I am also submitting the same answer to this question as a backup in Steem blockchain.
Two most common settings in the rewards which the authors in Steem generally select are:-
- 50/50 Reward.
- 100% power-up Reward.
The default setting of reward is always 50/50 Reward. The $ sign which you see in post reward is neither USD nor SBD, rather it is a combination of SBD and USD and that is why it is known as STEEM TOKEN UNIT(STU) in Steem.
So let's get into detail which one is more profitable between 50/50 reward or 100% power-up reward
50/50 Reward
If you have chosen the 50/50 reward setting of payout.
- 50% will be Author reward
- 50% will be Curation Reward.
The 50% Author reward is further split into two equal parts. One part is liquid(25%) and the other part is staked(25%).
The liquid reward is always calculated on the equivalent of SBD whereas the staked reward is calculated in the equivalent of USD.
The reference feed price of STEEM can be checked from Steemworld.org and that price shall be taken into calculation, not the real-time price of STEEM, the internal feed price of STEEM which is now 0.19767.
As we are considering the Author payout only, let's not get into the detail of curation reward.
(From Steemworld.org-->Market Info)
Internal feed price of STEEM= 0.19767
Actual STEEM/SBD= 0.12405/0.61780= 0.20079
Let's consider a post payout of $100.
Author reward is 50% of 100= 50
Liquid Reward= 50% of Author Reward(or 25% of Total Reward)= 0.5*50= 25
This 25 is SBD payout.
So the equivalent STEEM value of this 25SBD payout(as per the actual market price)= 25/0.20079= 124.5 STEEM
Note- The current STEEM to SBD ratio is 0.20079
Staked Reward= 50% of Author Reward(or 25% of Total Reward)= 0.5*50= 25
This 25 is in USD equivalent. Here the internal feed price of STEEM will be taken into account which is 0.19767.
So the staked reward(SP)= 25/0.19767= 126.47 SP
SP- Steem Power
So if an author has chosen 50/50 reward setting, then the actual payout the author(in a post payout of $100) will be- 124.5 STEEM+126.47 SP( Or 250.97 STEEM)
100% power-up Reward
If you have chosen the 100% power-up reward setting of payout, then 100% of the author reward will be paid in SP. The staked reward(SP) will be calculated in USD equivalent & here the internal feed price of STEEM will be taken into account while calculating how much SP the author will get.
Let's consider a post payout of $100.
Internal feed price of STEEM= 0.19767
Author reward is 50% of 100= 50
Now this entire reward will be in SP.
So staked reward(SP)= 50/0.19767= 252.94 SP( Or 252.94 STEEM(staked))
Conclusion
If a post payout is $100, then by choosing 50/50 reward setting an author will get 250.97 in STEEM equivalent whereas by choosing 100% power-up reward setting an author will get 252.94 in STEEM equivalent. So 100% power-up reward setting is more profitable now. But please note that this calculation is very dynamic in nature as the price changes every minute. However, as of now, 100% power-up setting will be profitable for an author.
Thank you.
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