I have a doubt.
How can you provide 1.34x ?
Let's say you receive 10$ totally from all user upvotes.
Let's say after all curation rewards are cut off , you will have 8$ . But you need to provide 13.4$ back to users because they upvoted you isn't it?
I mean I know this isn't your primary earning method but isn't it causing you loss everytime you post? Or is this designed like this because you wanna give back to users ?
Edit: I did read that upvotes represent only 20% of active user base. It's for all posts?
What happens if it reaches to 100%?
Hmm you don't lose anything by voting. The difference is how much you are earning with the votes. If sbi is upvoting us for more than we upvoted sbi just means that sbi earns less than it would get by selfupvoting but it doesn"t mean that sbi loses steem.
But I would love to see more data about it in the next posts (I love these kind of numbers xD)
Edit:
!sbi status want to test if I can edit this into the comment and if it still works
Oh yeah I knew that we members wouldn't lose anything but I was referring to them . Well yeah same here I like numbers
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I didn't mean us members with my comment ;-)
I think it's also a kind of balance between rented SP, Steem from members who bought shares, number of active members, curation rewards and normal rewards.
I am impressed by the whole system and that it works with all these variables.
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You are right. One of the best programs on steemit. I love this.
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We are planning to write more about the relationships between each element and our sustainability soon. The 20% was approximate. We have 6102 enrolled accounts that have posted/commented in the last 28 days, and only 1021 votes on this post after 4 hrs.
Some of those votes aren't from our members (like busy.pay), but some are from inactive members that set us on their auto-voters a while ago. We could check against the actual member list, but it gets us in the right ballpark. 1021 / 6102 = 16.7%, which is actually lower than stated in the post.
We would need to check the actual SP composition of the remaining member base to identify the estimated impact if all members auto-voted, but our author rewards would be measurably higher.
As for the $10 scenario... we could extrapolate further to a theoretical limit of $100 or even $1000 upvotes and the outcome would be similar...
Our system tracks an rshares balance (pending upvote value, essentially) for each user and tries to deliver 20% of the outstanding balance on each post. After each upvote is delivered, it scans the actual block to see how many rshares were recorded by the witness and subtracts from the balance.
If we did receive a nice big ($10, $100, $1000) upvote, we would deliver as many upvotes as needed to return the value due over time. If that is sizable relative to our SP base, then it would temporarily drain our VP as that member gets full upvotes on each post, but the value received would be a permanent addition to our SP base. Once the full balance is rewarded to the member through upvotes, that permanent addition has no further cost to us and substantially adds to our sustainability.
So we are essentially paying a little more in upvotes short-term for a long-term boost to our overall sustainability.
Cool , thanks for the detailed explanation :)
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