I recently seen a post about someone switching to 100% Power ups for there posts and had to stop and explain the rewards pay out to them. I'm going to take a moment to explain this to everyone.
I still think people should be powering up their Steem Accounts to Steem Power and I am still doing that with my rewards.
But by using the 100% Power Up, when you make your post you are missing out on a lot of rewards. I know some of you are doing it, because of those little steem waves after your post title. That means it's a Power Up'd post. I've been meaning to drop in on some friends I've noticed doing it, but instead I'll just tell everyone now.
Post Rewards
I'm going to start with a quick and dirty on how post rewards and calculated. We know with 50/50, you get half you payout in SBD and have directly in SP (and you lose some around 15-25% to curation). If you use power up you get 100% SP.
That's the easy part.
But now it gets confusing. The intention was that 1SBD would equal around 1USD and for a long time it followed that trend perfectly, but we know that recently the price skyrocketed and it's worth around $7 at the time of this post. But to whatever program thingy that calculate post rewards it's still only with 1USD. So you still get alot of these from 50/50.
Still following, lets make and example.
Lets say you have a post that pays out $10, and right now STEEM is worth $5 and SBD worth $7.
We're going to ignore curation for the example.
If your select 100% power up you will get 2SP, since steemit knows that 1 STEEM=$5, so your $10 post is worth 2 STEEM.
Now if you select 50/50, you'll get 1SP for the 50%. Same as above, steemit knows 1STEEM is with $5. But for the other 50% you'll get 5 SBD, since steemit is still programmed to think that 1SBD=1USD. You can then of course market these 5SBD for about 6.5 STEEM.
Once you power that up you'll have 7.5SP instead of 2SP from the exact same post payout.
This is why it's not a good idea to be using 100% Power Up right now while SBD are currently worth more than 1USD, you are missing out on alot of rewards.
