Using this analogy I am trying to explain this as simple as possible. Here is my explanation of why your post payout is going down. As always this is not the easiest concept so I will try my best to make it easy by using an analogy. I have done this for previous posts so let see how it goes. Lets take a look!
Today we are baking! So from here on out we will be bakers/pastry chefs in this wonderful Steemit Bakery.
Ingredients
Steemit bakery will be give us all a set of ingredients to make some delicious pastries to give to all our friends.. The ingredients vary in quantity and we will not always get the same amount. Sometimes more, sometimes less. Remember there are loads of bakers here on Steemit and everyone wants to bake some pastries for their friends. The more they back and give away the more ingredients they will be using. Let's say baking all these pastries take exactly 7 days.
The "ingredients" are the Steem allocated to us to Upvote posts and comments. There is a certain amount in the reward pool that are given to us by Steemit. The more users and content we have the more the pool gets split up to accommodate all the users. As new users join and more content is created the pool needs to accommodate for this change. The more content and upvotes , the lower the payout will get. Less content and votes the payouts will rise. The calculations for payouts run constantly until you get your payout after 7 days.
Size matters
What we do with these ingredients and how we distribute our pastries will determine how our friends will feel about our pastries. Some bakers are really experienced and can bake exceptionally large cakes very few ingredients. The newer bakers still make many mistakes and waste a lot of their ingredients. They make much smaller cakes than those who have more experience and never waste any ingredients.
Our Steem Power decides how strong our upvote is. Some users with large amounts of Steem Power can cast a vote that is worth a few dollars while other users with very low Steem Power will only be able to add a few cents to a post.
Quality vs Quantity
Some bakers like to bake a few high quality cakes for their friends and their friends love them for it, sometimes paying them handsomely for the amazing cakes. Others decide to bake loads of really small pastries and pass them out to everyone. Baking a truck load of small pastries with your limited ingredients is not really the best thing to do. No one likes getting just one small bland cookie. The users who receive these are not always keen on paying for them and they will give only a small token of appreciation.
With our Voting Power at 100% we can give at least 11 really good Upvotes a day. These larger votes have the potential to reward us handsomely for our curation efforts. Using up all your Voting Power and then voting still has the potential to reward us for our curation efforts, just in much smaller amounts.
Taste
Last we get the quality of the ingredients. Yes, Steemit Bakery gives us all the ingredients we need, but sometimes the quality is lower or higher than expected. This does have a slight effect on the overall quality of our cakes and cookies, We bake with what we are given.
Steem price fluctuates and this is one of the main and most common known factors that will influence your payout. Simply put: Steem price goes up, our payout goes up. Steem price goes down, our payout goes down
Attention to Detail
In the worst case scenario some bakers add salt instead of sugar to their cakes or cookies. This can have a really negative effect on your baking experience and the people you share your pastries with.
Plagiarism, Tag abuse or using Bots in a bad way might get you flagged by a user. This is basically the opposite of an upvote and will decrease your post payout.
To sum it all up. We all get a share of the prize pool to distribute to posts and comments via out Upvotes. The more we use of the pool, the smaller our share becomes. Steem price fluctuates and so will our post payout. Users can upvote your posts ad nyou will make more money. The stronger the user the more you will earn. Same goes for getting flagged, this will make your payout less., the stronger the user the more your payout will decrease. I hope this help some users to understand some of the things that have been going on here regarding post payouts going down. I like making things clear in my head by using analogies. Let me know what you think! Until next time, Steem on!
Found this information useful? Why not give it a resteem, others might find it useful too. It will be much appreciated.
To all my followers:
Thank you for reading! Steem on Steemians!
Thank you for reading! Steem on Steemians!
Love your analogy, it's much clearer even for me ta!
You are most welcome! I always try to make things easier. Most of my friends prefer the analogy method. I prefer it too. Makes it simpler. Thank you!
The thing is...you need to understand it fully to be able to do that :)
I did quite a bit of research in order to make sure I got my facts straight. I always hope it is, but surely someone might come along and correct me if I am wrong.
Even if we stupidly do our research and not understand it..it will still be difficult, sad to say.
Yes I agree, takes me a long time to grasp some of the concepts on here. Slowly but surely I am getting the hang of it =)
No matter how one pulls her hair, some things are quite difficult in here lolsss
Good on you :)
Hey @scrooger, thank you for the information. It makes a bit more sense now. Wonder if you could look at a post in the future where you explain how to bake a proper cake and not only cookies? We would like to improve our followers and thus our payouts as well, just like anyone else. We have followed you as well. @darnscotty
Thanks a lot mate! This post will help you understand Voting power. It is important for the long run and for curation rewards. As for followers, never ask for followers. That way you might end up with empty followers that never Upvote your content simply because they aren't really interested in you content. Get them organically. Promote your posts and followers will come. It is slow at first but interact with everyone and make friends. This is the best way. Have fun and don't focus too much on the money. =)
Nice post!
Thanks! =)
great post !! Thanks for sharing ! Upped and resteemed!👍👍👍
Wow, thanks for the resteem and the upvote! Really appreciate it! It's so amazing to see a reply from a high rep user. Feeling the pressure =) thank you!
oh your welcome ! But I have had to power down thsee past 13 weeks so my up votes are still worth a bit but not much ! Its a great post should get more views! 👍👍👍
Yes I wish it could get more views but I am happy if a post reaches at least $10. Makes me feel the effort was worth while. Slow and steady I will build it up =) thanks again for the resteem and vote. Really appreciate it. You have a lot of followers
im glad if it helps ! Steem on and keep up the great work !👍👍👍
Always =) You too!
thanks !👍
@scrooger great post Even I was wondering why?
Resteemed it
Your are most welcome! Appreciate the resteem =) thanks!
And for those who are considering buying Steem, a low price is of course interesting. I recognise not everyone is ready to enter that market either due to liquidity issues or simply unfamiliarity with currency trading. However, for those who are trading, now looks like a good time to buy Steem.
Looks like a good time to buy many crytpocurrencies. But I would give it a couple weeks. :D
I might give it a few Jupiter weeks...happy to bathe in the Steem and BTC pools, but others look like shark-infested waters to lil' ol' me....
I agree with you 100%. It truly is a good time to buy and I am also looking into buying some more as soon as I have some spare cash for it. This is sometimes hard for the newer users simply because of the unfamiliarity. I must say though that because of Steemit so many new users come to make a quick buck and then eventually stay and learn so much about cryptol i n general. Love how this platform works!
The University of Steemit is a great place to get a crypto degree - lol
Haha! Yes it is indeed! I have learned so much and all the new users are learning too! They kind of have to in order to turn Steem into cash in hand!
🤗
Thanks @scrooger I enjoyed your analogy, and will pass this post on in the future.
Thanks and most welcome!
Upvoted that is an awesome analogy. Does it address though that when some of the bakers give more away it will take a significant amount of ingredients from the overall ingredient pool? I am still trying to get my head around that
It does now, sorry missed that. Thanks =)
I mean is it true? I was asking because I am trying to better my understanding. Is it true?
Yes it is. For example, If you upvote at your current Steem Power level your vote is worth around $0.10 so you take very little from this pool. If a whale comes along and his upvote is worth $100.00 he takes a much bigger chunk of it.
Oh wow... I just got a $190 upvote from someone, So my other ones may go down a little. I see how it works now :)
OMG! $190 Holy moly mate! That is lick a whale kicking you right in the face! Lucky and congrats! Someone really liked that post!
Yes this one
https://steemit.com/steemit/@yoda1917/i-would-like-to-win-this-opportunity-to-make-maximum-contribution-to-steemit-and-fellow-minnows
I really hope to win this and do some good
And I love the whale kicking me in the face thing lol
Lol and they did. SOme of my $70 ones went down to 60 something
Yeah, same here. I think this is the case for everyone. It should balance it out in the future though. I think it's the huge amount of new users and also not knowing that they shouldn't vote on everything just for fun.
And that is a good thing. @adil was posting about how not enough people invest real money and too many are powering down and cashing out
hahhaha love the kitchen explanation :) thanks for sharing
Soy tu tio
Most welcome!
Increased userbase is a reason to split reward pool among them but reward pool is also decreasing with each day. So lets see how it unfolds in coming days.
I agree, I am also curious to when and how this will be adjusted. =)
Wow. This made everything very simple. I'll use this analogy to explain to my friends joining steemit. It can definitely be confusing and this just makes it clear as day
Awesome! Thanks for that, I was wondering if it might just make everything more confusing for some users. Glad it didn't. Thanks
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by scrooger from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.
Good analogy, nice job baker ....its delicious...lol
Hehe, thanks a lot mate! Irony is I don't even bake!
I dont know why, but evertime I reply here, my finger can't help but click on upvote button, and resteem! Are you sending me a sublinal message??
Stop coffee braining me!!
Hahaha! Your upvotes and resteems are always appreciated!
Me subliminal message? NEVER! Is it working though =P
Need to adjust some settings on my subliminal machine if it isn't
Your daily mental excercise!
Mental Workout For Increased Focus, Attention and Emotional Stability - Isochronic Tones, Rain
Will check it out for sure! Did you get your Poloniex sorted out?
Argh noo? It's still down with transfer, and it's pissing me off!
Ok, Al cool down!
Wow! I want to be live on that train! Looks like such a happy place! Oh no that sucks man. Can you convert to bitcoin?
hmmm never thought of that duh!!!!
Awesome analogy...helpful information! I am following you for more :) I would upvote you but after my first couple days of upvoting everything (not understanding how it works) I am just trying to get my voting power charged up...I will vote for this tomorrow :)
Awesome! Thanks a lot! Glad you are taking care of your voting power and not just upvoting everything. I have some other useful guides to if you check out my feed. Especially if it comes to editing :)
Explained it as easy and awesome as always. Great post!
Thanks mate! Always happy if a post gets a good response from my followers. I am writing with you guys in mind
Awesome post mate helped a lot 😊
Most welcome!
Thanks for this post.
You are most welcome! Glad it could help out a bit =)
Helpful post for minnows
I agree, most of my followers are minnows so I try to write mostly for them =)
Good tutorial, thanks so much for this
No no, thank you! =)
I want to be like you when I grow up. LOL Seriously, GREAT POST. 😊
Haha, cute! Thanks. Just be yourself! I am sure you are awesome!
Really enjoyed reading that !!
I really enjoyed writing it. Glad it is getting few upvotes. Thanks mate
Thank you for explaining in easy to follow terms! Upvoted and resteemed👍💯
Awesome sauce! Much appreciated! Always love a resteem =)
Yayyyy finally the post is here! I'm about to sleep, but will read it first thing when I wake up! Thank youuuu
Sorry I only understood cake.
Would like a direct approach better. Thank you for your time
Great analogy, however to add - payout went down for everyone which is related also to the facts the reward pool is smaller and the steem price went down recently - back to a bit growth now finally. But your points are correct in addition, bake steemit great again
Thanks appreciate it. I did mention though that reward pool is going down =) thanks for giving it a read. Always love getting a comment from a high rep user
Sorry for not spotting it, great write-up
No worries. Thanks again
That is a great explanation. The best I have seen. Thanks.
Thanks mate! I find the analogy helps out a bit when explaining things =)
I agree...
Thats a great post , u make it look so simple