The Value of the Potato Dollar
You might be thinking, "What the heck now? What Potato Dollars? Don't we have enough confusion with those STEEM, Steem Power, and SBD (Steem Backed Dollar), not to mention Voting Power, Rshare, VEST, Bandwidth and stuff? This woman must be crazy!"
Well, you might be right, and I might be crazy, but I'm quite positive about those "Potato Dollars."
Gif Source: Author's own derivative work with graphics from Pixabay. Credits to Clker-Free-Vector-Images for potato and dollar-money-signs both used under the CC0 Creative Commons license.
What are the Potato Dollars?
At first, let's be clear with this one, Potato Dollar(s) is term entirely invented and fabricated by me, but it doesn't mean they don't exist. In fact, they do exist very much, and if you are on Steemit, you are watching them closely every day!
But, before I'm going to tell you what exactly Potato Dollar is, let me explain to you how I came up with this term and how Potato Dollars were made.
Potato Dollar Story
It was a month or so ago when I was discussing earnings on Steemit with another Steemit member. Among other things we were talking about, it was also the post's revenue and the two-decimal number with dollar sign ($) prefix that shows up below our posts and should represent the amount of the earning.
My interlocutor was convinced, at first, the number represents the value in US dollars. I was convinced it doesn't. Then he thought it must be SBD (Steem Backed Dollars) or STEEM. I believed it's not either only SBD nor the STEEM only.
In fact, I was firmly convinced it's a mixture of STEEM and SBD, but I was wrong or at least not entirely right how it's calculated. However, the dollar sign ($) prefix caused the most significant confusion for both of us that dragged us into a strong argument.
At some point when we were both already quite frustrated, he said: "OK, if it's not US Dollars, STEEM (dollars) or SBD (dollars), what the heck it is???"
My frustrated impulsive answer without thinking was: "Potatoes!!! Potato dollars! Plum, Pear, Peach or Perfect Dollars!!! You name it, but it's not the US Dollars, either not only STEEM or SBD!"
As at the time, SBD just started to jump high, and my previous formula (that worked just fine when STEEM/SBD ratio was about 1 STEEM = 1 SBD) didn't seem right anymore, I couldn't convince him how my "Potato Dollars" are, in fact, the value that represents the mixture of STEEM, SBD and even USD.
But now, I can!
Although, let me tell you first... After the above-described discussion, all the way through by now I was closely watching the payouts trying to figure out the right formula. And I believe, I finally have it. So, here are my findings. As I was convinced from the beginning the number below our posts and comments does not represent just US Dollars, either not only STEEM or SBD! It's a funny and strange mixture! As well, the number and its value don't have some official Steemit name (as far as I know). But as the prefix dollar sign ($), I believe, caused a lot of confusion among many Steemians, thinking about it as something else like my "Potato Dollar" is, might help us all to understand the reward calculation better. After all, why not "Potato Dollar" (PD) or "Potato Steemit Dollar" (PSD)? Most of us love potatoes. Most of us love Steemit either. Potato is the food that even most devoted vegans would accept. It's food that can feed us all. If used the right way, Steemit can feed us as well. Besides, if Apple can use the 🍎 apple why Steemit wouldn't be able to use the 🥔 potato? Right?! If we can agree that the value below our posts and comments is something else what we are going to call "Potato Dollars" (PD)" for easier understanding, here it is how it goes. There are two ways how those "Potato Dollars" would be calculated and paid out. It could be only in STEEM or STEEM and SBD together. We are the ones who determine which way is going to be. Whenever we create a new post on the bottom right side, we may choose how the reward is going to be paid to us. If we neglect (the third) "Decline Payout" option in which case we would waive payments, we have available the following two options - "Power Up 100%" option and "Default (50%/50%)" option. One thing we shouldn't forget, and which applies in both cases is Curation Reward. It's the reward all the members who were voting for a particular post will receive as some sort of "Thank you for the vote." The amount of Curation Reward may vary for many different reasons from 0% up to 25%. But, as it's another whole chapter we will, for this presentation and clarification, focus on the maximum possible amount which is 25% of final total displayed value under the post at the end of 7 days period. Let's also assume (just for presentation purposes) that at the end of 7 days period the number under our post shows the value displayed as $100.00 what we agreed we would call "Potato Dollars." If we choose this option when creating our post, we will receive the entire payment in Steem Power which is, in fact, STEEM and we would be paid as follows. (As at the moment I'm writing this the STEEM value is US $6.08 per 1 STEEM, I will use that amount in my calculations.) Post Total Earning is $100.00 Potato Dollars $75.00 / US $6.08 = 12.335 STEEM If we choose this option when creating our post, we will receive half of the payment in Steem Power (STEEM), another half in SBD, and we would be paid as follows. Post Total Earning is $100.00 Potato Dollars $75.00 Potato Dollars / 2 = $37.50 The 1st half in the amount of $37.50 will be paid as 37.50 SBD in our SBD Wallet. So, in the case when we choose Default (50%/50%) option and our total earning displayed under the post shows $100.00 (Potato Dollars) our paid reward would be 37.50 SBD and 6.167 STEEM. Authored by: @ana-maria
Image source: Pixabay. Credits to johny_deff for potato-character, used under the CC0 Creative Commons license.
Image source: Pixabay. Credits to OpenClipart-Vectors for anthropomorphic-boy, used under the CC0 Creative Commons license.
Power Up 100% option
Image source: Screenshot from CoinmarketCap.
25% Curation Reward is $25.00 Potato Dollars
$100.00 - $25.00 = $75.00 Potato Dollars
Those 12.335 STEEM will be paid to us as Steem Power directly in our SP Wallet.
Default (50%/50%) option
25% Curation Reward is $25.00 Potato Dollars
$100.00 - $25.00 = $75.00 Potato Dollars
The 2nd half would be calculated the same way as it was the total amount in case of Power Up 100% option.
$37.50 / US $6.08 = 6.167 STEEM
That 6.167 STEEM will be paid to us, as Steem Power directly in our SP Wallet.I hope I managed somewhat to demystify that "hot potato" of Reward Payment Calculation mystery with my "Potato Dollar" story and presentation, so you would have some use of it.
Photo source: Pixabay. Credits to ambra for potato-vegetable, used under the CC0 Creative Commons license.
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