Quote:
"It also means that it is much, much harder for vote trading and collusion which can essentially create a type of dictatorial authority at the top with very little chance to change governance."
This right here is key. People really guffaw when suggesting that there will always be people who will conspire when given enough power, time, and freedom. I have changed my witness votes and plan to again, for this reason. The more I learn, the more I unlearn, in a sense.
I don't know if you can answer this, but I'm wondering, who is in charge of the payouts and how payouts are made? Are those witnesses, or is it Steemit Inc? The STU payout is confusing to me since it seems it was set up at a time when the SBD was closer to the value of a dollar, as it was originally intended to be, but clearly is not. So, when the value rose, why didn't the post payout arrangements change to accommodate the growth? Whose decision is it to change, or not change the payout calculations, regarding the 50/50 payout? Why is the steem payout at 100 percent set to make an investor lose their money?
Idk if this post is clear, because it is confusing to me... lol
What do you mean lose their money?
Okay so say I invested 100 dollars into steem. Lets assume Steem is at 4.00 USD and SBD is at 3.50 USD. So 100 USD, that is 25 Steem. Then, lets say I bid on a vote bot for 25, and I won. The payouts says 50 STU.
Then the payout comes, and you get either half in SBD and half in Steem, or just in 100 percent steem. 50 STU multiplied by .75 is 37.5 STU after curation.
100 percent steem payout: 37.5/ price of steem which is 37.5/4 = 9.375 Steem Power. That would equal 37.50 USD.
or
50/50 payout: 37.5/2 = 18.75 SBD and 4.6875 Steem Power. that would equal 65.625 and 18.75 USD, repectively for a total of 84.375 USD
In both cases, even though I won the Bid, and put all my money into a post, less comes out and even less when selecting 100 percent steem payout.
here is my recent post on it, but I am trying to figure out why you actually lose money when you select 100 percent steem payout, rather than just buying the steem outright, and the use of bid bots do not seem to be as lucrative as H (you know who) makes it seem to be and how everyone else seems to say it is.
Maybe I am misunderstanding something, but the numbers dont make sense to me.
https://steemit.com/steemit/@miss-j/do-all-bidbots-actually-make-you-lose-money-why-are-50-50-payouts-not-paid-in-50-sbd-50-sbd-worth-of-steem
Oh, you are talking about bidbots.. yeah, the system isn't designed for them. If you haven't worked it out yet, the bidbots never lose. You obviously haven't been reading my posts about bidbots the last 9 months but, I don't use them. The ones that exist now are harmful to the system in my opinion.
Yeah, I expected them to get a cut of the profits, but not to make the high bidders lose? And yes, I am currently trying to understand how bid bots makes anyone money except the bidbot owners, and I am trying also to visualize why H spends all his money on them, what is he gaining?
... but it isnt just the bots, the payouts should never be at 100 percent steem payout or else you are just throwing away money. under 100 percent steem payout, you lose the half that would have gotten paid out as SBD - which currently is worth 3.5 times the amount that the half paid in steem power is. What is the point in that? They should put a caveat next to it and suggest to the user that selecting this option is willingly burning up your profits.
only because SBD has broken the peg. It is meant to be at 1 USD and is stil calculated by the system at 1 USD. Steem is calculated at market value on a 3.5 day floating average. Good times to buy steem used to be anytime SBD was over 1. and sometime 1.2 was amazing! people seem to not understand what is going on now and think this is normal so instead of using the SBD to buy Steem, they cash it all out and take short gains. To each their own.
Yes, is a broken peg not fixable? Lol i dont know what a brokn peg is, but whatever it is, its effed up. Imo.
Okay thanks for your replies. That helps a bit.
some want to fix it, some don't. The system is currenty broken because of it though and the bidbots are making extreme value as people pay in sbd.
as for your previous bot posts, Im very new, only been here since march. :)