Hello Everyone, Ever since I joined this platform there were some mysteries I wanted to unravel and in this lesson, I found some serious answers in depth. The lesson is informative and I'm excited to present my homework task for it. ![image.png](https://cdn.steemitimages.com/DQmU2fAXoTWZ71jQBLxN19WF2vVTrHTEoMm56WjVSti6Z2F/image.png) ---

01). What is STU? What is the break-up of STU? Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout?

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) - **Introduction** Before we get to know more about STU we should have a fair bit of knowledge about the platform we use **"Steemit"**. Launched in March 2016, Steemit can be identified as a social media platform built on top of the Steem blockchain. The concept of the platform is quite similar to the [sweat equity](https://www.investopedia.com/terms/s/sweatequity.asp) principle where the users get benefited while contributing to the platform. To make that possible Steemit has introduced its own coin **STEEM** to the platform members with a voting system. With this model, any user who contributes to the platform with meaningful + quality content gets votes from other users and thereby the user receives rewards as well as increases individual reputation. - **What is STU?** STU stands for **S**teem **T**oken **U**nit. It represents the **post payout** amount in different asset classes in the Steem network (SBD, STEEM and Steem Power(SP)). Usually, we as users can see this in **$** sign on our posts. However, it does not represent dollar amount nor the Steem value. This STU value is always divided between the authors and curators as 50 : 50 percentage ratio. ![image.png](https://cdn.steemitimages.com/DQmNS22PeV2kc3SoKP47ohSe4mg9tGjk9LqH2MBGH26d74z/image.png) ^{STU in post payout} - **What is the break-up of STU?** Now since there is 03 assets involvement, users/authors have an option to configure how their 50% of post reward should be rewarded. However, curators do not have an option but to receive their 50% share equals to Steem Power(SP). ![image.png](https://cdn.steemitimages.com/DQmeaAQ9cPeJGEptFq82DaZwPZDypYj9Y1zjFn9jvne8vfb/image.png) ^{Reward payout settings for users} After selecting one above 03 options, authors receive their rewards exactly after 07 days from the post published. Outcome of the reward can be described as follow, ◾ Option 01: Decline Payment This is simply the author is declining the rewards from the post. Thereby author will not receive any financial reward for the post. ◾ Option 02: 50% SBD / 50% SP Usual choice when the SBD value is greater than USD 01 (Debt Ratio below 9%). The default setting is also set to this option. The reward can be split to 50% of SBD + 50% of SP as it is or SBD + STEEM + SP subject to the [Debt ratio](https://steemit.com/hive-196725/@sapwood/understanding-debt-ratio-and-its-effect-on-author-payout). ◾ Option 03: Power Up 100% The full reward will be distributed in Steem Power (SP). - **Take a real example to indicate the STU and calculate the different rewards that Author and Curators generated from your last Post Payout?** My last payout was set 50% SBD / 50% SP option, ![image.png](https://cdn.steemitimages.com/DQmVHPnF7BWuo3ub3iQeXg8FoBt71YDSbzR4p78XWH8uw2c/image.png) ^{Last Post Payout} > Post payout: $86.83 Payout split between Author & Curator for 50 : 50 >Author Rewards: $43.47 (50%) Curator Rewards: $43.36 (50%) ◾ Curators generated reward as to the above example, 50% of STU = $43.36 Steem price as at payout = 0.5719 **43.36 / 0.5719 = 75.82 SP** for for the curators. USD equivalent value for the curator 75.82 SP = **43.36 USD** ◾ Author generated reward as to the above example, 50% of STU = $43.47 Steem price as at payout = 0.5719 SBD price as at payout = 7.75 My payout was 50% SBD / 50% SP 50% SBD = 43.47/2 = 21.735 SBD 50% SP = 43.47/2 = 21.735 SP SP value for the Author = 21.735/0.5719 = 38 SP (21.735 USD) SBD value for the Author = 21.735 x 7.75 = 168.44 USD USD equivalent value for the Author = 168.44 + 21.73 = **190 USD** Curtor / Author reward distribution (in USD) = 43.36 : 190 = 22 : 95 It is evident with this calculation that the authors are getting more reward benefits due to the fact that the SBD rate value is over 07 USD. SBD is a currency which was pegged to 1 USD value but demand over SBD has changed the concept of how the platform liquid rewards should be distributed. I will further discuss this point on the 05th question. ---

02). Indicate the Raw reputation score of your Steem Account and calculate your Reputation? Cross-check it with the Reputation score displayed in Steemworld.org?

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) To check my raw reputation I have used https://steemd.com/@virajherath, and found it as **31,805,234,060,596** To calculate the reputation from the raw reputation I can use below formula, **Reputation score = (Log10(Raw Reputation Score)-9) * 9)+25** = (Log10(31,805,234,060,596)-9)9)+25 = (13.502498596 - 9) x 9 +25 = (4.502498596 x 9) + 25 = 40.522 + 25 =**65.522** To cross check my reputation I have used https://steemworld.org/@virajherath, ![image.png](https://cdn.steemitimages.com/DQmSH58NfksFt9LjGzBYNGv3A9gAzBy1qKVXuL6LdiaBDjb/image.png) ^{My reputation} > ^{Note: It is very important to calculate the decimals to get the exact 03 decimal figures shows in steemworld.} ---

03). What percentage(of the Post Payout) was generated as liquid rewards(SBD) from your last Post in terms of USD equivalent? Explain how the rise of SBD has shifted the supply dynamics? As per your last post payout calculate the ratio of Author:Curator Reward in terms of USD equivalent?

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) Referring to the data collected from the question number 01 section 03, ◾ Total amount of rewards as to my last payout post, Author Rewards (in USD) = 168.44 + 21.73 = **190 USD** Curator Reward = **43.36 USD** Total post payout (in USD)= 190 + 43.36 = 233.36 USD Liquid rewards (SBD) as a percentage of the total payout = 168.44 / 233.36 = **72.18%** Curtor / Author reward distribution (in USD) = 43.36 : 190 = **22 : 95** - **Explain how the rise of SBD has shifted the supply dynamics?** The price of a digital currency always depends on both supply and demand. SBD an acronym for **Steem Blockchain Dollars** was introduced as **convertible notes** to maintain the **stability** of the Steem network. It was supposed to be working as a peg of 1SBD = 1 USD where both curators and authors get similar benefits out of the reward pool. The ratio the platform wishes to maintain is 50 : 50. But with recent demand over SBD, the value increased and stayed over 07 USD for a considerable time now. This has made some serious concerns over the reward distribution ratio as it is now split less favorable to curators and beneficial for authors. According to the prof @sapwood it is about 20:80, Curator : Author reward distribution. This number might further be changed if the SBD value increases more in the future. Even from my calculation, I have noted that over 72% reward is liquid rewards and the author has over +80 reward ratio compared to the curator reward. The Steem Blockchain however designed to distribute only 25% of liquid rewards. This contrast between liquid rewards affects the value of Steem. ---

04). Explain how & why an initiative like #club5050 can shift the demand/supply dynamics in favor of STEEM?

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) Continuing the previously discussed point, as an author, first I felt that is quite amazing to get more benefits from the reward pool. However, in the bigger picture Steem value going to decrease in order to meet the supply of SBD valuation and that affects the platform stability. Initiatives such as #club5050, #spud4steem or #welovepowerups encourage users to stake their liquid rewards in Steem power. Hence, the gap of liquid reward ratio can be managed once the Steem value increases. As an author, the benefit is still the same because such an initiative will give sustainability to the platform. Let's take the same example of my last payout, 50% of STU = $43.47 Steem price as at payout = 0.5719 SBD price as at payout = 7.75 My payout was 50% SBD / 50% SP 50% SBD = 43.47/2 = 21.735 SBD 50% SP = 43.47/2 = 21.735 SP #### So as an author I decided to join #club5050 for the previous week payout. SBD value for the Author = 21.735 / 2 As liquid SBD = 10.876 x 7.75 = 84.28 USD **to power-up = 10.876 / 0.076487 (Market Ask) = 142.19SP** SP value for the Author for the post (50% SP) = 21.735/0.5719 = 38 SP (21.735 USD) SP value for the Author for the power-up = 142.19SP (81.32 USD) USD equivalent value for the Author = 84.28 + 21.73 + 81.32 = **187.33 USD** The previous time without power-up occurrence I had **190 USD**, now it is proved that joining this initiative doesn't make any financial effect for the total income but it's merely a stake of the income. Now let's see how it affect to the ratio, USD equivalent value for the Author = 187.33 USD USD equivalent value for the curator = 43.36 USD Total = 230.69 USD Liquid rewards (SBD) as a percentage of the total payout = 84.28 / 230.69 = **36.53%** It might not be 25%, yet did you see the difference from the previous scenario. It was **72.18%** without the power-up and with power-up **36.53%**. That is the very reason we should support this initiative. Personally, I have powered up almost all my earnings for the previous few weeks which is 1500 SP and I'm a proud dolphin now 🐬 ---

05). Consider a user having a reputation lower than you, upvotes your Post-- Does it affect the Payout and increase the Rep? If the same user goes for a downvote, does that affect your Payout and Reputation both? Explain Why & How; with Examples?

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) Let's assume that, **User A has 70 reputation & User B has 60 reputation**. **My reputation is 65** and if I receive an **upvote**🔼 from User A these are the possible outcomes, ◾ Increases the post payout according to the voting weight. ◾ Increases the reputation according to the voting weight and size of SP. if I receive a **downvote**🔽 from User A these are the possible outcomes, ◾ Decrease or remove the post payout according to the vote weight. ◾ Decrease the Reputation according to the voting weight and size of SP due to the fact that User A has a higher reputation rank than me. Now with User B these are the possible outcomes, if I receive an **upvote**🔼 from User B, ◾ Increases the post payout according to the voting weight. ◾ Increases the reputation according to the voting weight and size of SP. if I receive a **downvote**🔽 from User B, ◾ Decrease or remove the post payout according to the vote weight. ◾ Does NOT affect the Reputation due to the fact that User B has a less reputation rank than me. ---

Conclusion

![bar.jpg](https://cdn.steemitimages.com/DQmYVzXghkgin2G6AEwrLyNyryWxe6uEpVK7m9tiop61JSM/bar.jpg) Understanding how the platform works for its payout in depth was an interesting discovery. By doing that I totally understood the concept behind the #club5050 initiative. I spend time to calculate whether there is a possible disadvantage of joining this initiative and prove with the calculation that it is just staking the payout income. At the start of this season, I could not participate in advanced courses due to the reputation guideline. I was 64+ that time and waited 4 weeks to achieve 65. I understood how important to gain reputation and now I know how hard it is to get to higher rankings. Specially the milestone of 25, 34, 43, 52, 61, 70 and each round been hard for 10x time is heart aching. Overall I enjoyed and learned much from the lesson and would like to thank prof. @sapwood this valuable lesson.