Steem’s Golden Triangle: SP, Vests and Rshares
Welcome back to our Sustainability series, where Steem Basic Income takes you along on the journey to understand and achieve sustainability! This week we dive deep into another often misunderstood topic about how the Steem blockchain functions - the difference between STEEM and SP, the relationship between SP and Vests, and how it all relates to rshares. You may remember that the rshares accumulation is a big part of how our internal calculations work here at SBI, so buckle up, you are in for some important information!
Do You Know what Steem Basic Income is?
Steem Basic Income is a social experiment to bring a basic income to as many Steemians as possible. Members join by sponsoring others into the program. Steem Basic Income is delivered through providing regular upvotes to member content.
Many people believe that STEEM and SP are the same; I know I did until just a few days ago. We believe this because when we 'power up' STEEM, we get one SP for each STEEM we power up. Some may have noticed that our SP grows even without curation and posting awards. This is called ‘interest’, and represents ~16.6% of the inflation pool being distributed to SP holders. This is all true, as viewed from the front facing perspective.
And yet, there is another perspective, one that sheds light on the inner workings of these mechanisms.
In the background, everything is calculated using something called VESTS, which generate the rshares used in voting calculations. When you power up STEEM, you are buying VESTS at the current rate. While your SP value is ‘growing’, receiving interest from the inflation pool, your VESTS stay the same, only growing when you are distributed more stake by some other means, such as author rewards or curation.
VESTS come in really big numbers, so the more common terms is MVEST, or one million vests. The relationship between VESTS and STEEM, shown when you look at your STEEM POWER, is changing over time. The Steem blockchain has passed a milestone of sorts, shown below, with more than 500 STEEM needed now for 1 MVEST.
Here at Steem Basic Income, we strive to keep each SBI unit backed by 2 SP worth of voting power, and we have historically used 800M rshares per day as the benchmark. When we originally did this math, there was a buffer zone: 2 SP generated 810M rshares per day. Now that buffer is gone, and even went negative! Our benchmark per unit will now be 790M rshares of balance accumulation per day.
The good news is that it will be another 8-9 months before the votable rshares from 2 SP drop below 790M per day. We are keeping an eye on this and we will let you know when we need to make another adjustment. If you have any question or comment for us, please leave it down in the comments. We will be sure to get back to you!
Writer Bio
This Sustainability report was prepared for us by @ecoinstant.
From a young age, @ecoinstant continues to be very interested in the mechanisms of sustainability, and loves being a part of several teams working on promising projects, including the marvelous Steem Basic Income!
Questions?
Please read our FAQ. If you still have questions, ask in the comments section or join us in our discord channel.
You can look up your current membership levels by using !sbi status in a comment or post, or the similar tool that we have in our Discord server
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Hi @silvertop!
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A timely post as I was just wondering and researching what good is my SP. Thank you for the info. Unlike some explainations of Steem, this one was exactly what I wanted to know and written clearly.
We're glad we could help!
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Hi @kalam!
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Very well done post, I think this is probably one of the best explinations of STEEM inner workings that I have ever read. I learned a lot, thank you!
Thanks for the feedback! I'll let @ecoinstant know he did a great job.
Supporting sbi. 🇵🇭💪
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I want to delegate 5000 SP to @steembasicincome
Hi @improv! Special squad of highly trained hamsters prepared this delegation link for you:
steemconnect 5000.0 SP delegation to @steembasicincome.
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STOPTo support your work, I also upvoted your post!
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
@steembasicincome, I'm still very new at this Steemology thing and have been creating multiple delegations for investments in SP... but my "account value" keeps going down (I'm totally aware of Steem going from about $.42 to $.33 has some effect on my total account value). I'm wandering, and this is my question: should I purchase about 500 Steem and HOLD it in my "savings account"? Will this, along with delegations help increase my account value?
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Active uses of funds (spend on promotion services or power up and increase your curation or delegations to different programs) is almost always going to be a better return than the 'savings account' features of the Steem Wallet.
Our initial (surface-level) analysis of the savings accounts found them to be so useless that we never did a deep-dive into their functionality. Maybe there is some hidden benefit that was overlooked, but I doubt it.
Thanks for your reply... I had the idea of that is what was needed to be done. So, letting time take its course on my multiple delegations, I will start seeing a good ROI on these.
As far as I understand..... you earn nothing in savings I never use it.
Delegations will help you build, the price is just in the tank now.
I like and belong to @upvotebuilders, this is run by @ketcom. Look into Minnow Booster. You can promote your post and earn.
They have my trust 100%
Excellent info @steembasicincome thanks for the update.
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This is like universal basic income, great idea. I need help, I'm poor AF :(
Twice a week we publish a list of contests that are a great way to get started in Steem Basic Income. New list will come out tonight (in 8-10 hrs).
Will that be posted on SBI feed? Brand new to steem and blockchain
Yes. In the feed for @steembasicincome and also on the #steembasicincome tag.
Are you using conversion again to improve sustainability at the moment?
Yes we are. I didn't get the current metrics into this post because it was late, but it shows in the previous day's update and will show again in tonight's update.
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Hi @cst90!
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Hi @iven!
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Hi @steembasicincome!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 5.957 which ranks you at #356 across all Steem accounts.
Your rank has improved 8 places in the last three days (old rank 364).
In our last Algorithmic Curation Round, consisting of 174 contributions, your post is ranked at #54.
Evaluation of your UA score:
Feel free to join our @steem-ua Discord server
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Hi @cryptojiang!
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Hi @jason7282!
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Congratulations @steembasicincome!
Your post was mentioned in the Steem Hit Parade in the following categories:
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