A quick 101 TL;DR about voting on the Smoke blockchain. I’m going to try to keep this guide as simple as possible and mostly in bullet points.
There’s a complicated/sophisticated math behind but it’s better to take a toke, or 7, rather than break a nut and get migraine trying to understand all details. But if you want the nitty-gritty... head over to the STEEM whitepaper, it’s all explained there in a degree of detail satisfying the biggest math nerd and physics Nobel prize aspirant.
Smoke Upsmokes are NOT Free
Most users, especially new ones, think that rewards (upvotes) are free and they can happily, and merrily, upvote all day long as their heart believes. This is not true.
Votes have an actual cost: voting power (VP).
- Every account starts with 100% VP.
- Each (full) vote costs 2%. With each (full) upvote your VP lowers 2%.
- Voting power recharges, linearly, at 20% per day.(1)
This happens 24/7, so it takes 2hrs 24min to recharge from a vote.
So you have 10 full upvotes per day.(2)
- As your VP decreases, so does your actual upsmoke value in SMOKE.
A full vote at 100% VP is worth more than a full vote at 40% VP.
Smoke Curation Rewards Mechanics
One of the specific elements about the Smoke blockchain, contrarily to Steem, Whaleshares, and Bearshares, is that Smoke has a 50/50 split.
This means that the rewards to a post are split 50/50 between the creator and the curators.
The Curation Mechanics
In the upvoting process there’s two periods: the first 30 minutes and after that.
In the first 30 minutes a “reverse penalty” is applied, changing the 50/50 distribution and giving the creator more for earlier upvotes. After 30 minutes all rewards are shared 50/50.
So if you upvote in the first minute, the creator gets almost ALL the rewards, including the curation pool share. In exchange, as a curator you get a larger share of the curation rewards on that post. This distribution curve, and “reverse penalty” linearly drops as the 30 minutes pass by.
Let’s put this in a simple table. Please visit the Steem whitepaper (earlier versions pre-HF20) for the not #simplified math.
Voters who vote early will benefit a larger % of the staked curation pool. In practice this means that smaller stake holders generally do better by #voting earlier, sacrificing the curators share to the author but targeting so-called front-running.
What is front-running?
Front-running is when you vote before a larger stake holder. You front-run the whale.
Example: Jane has an upsmoke of 1 SMOKE. If she votes before Mary, who has an upsmoke of 10 SMOKE, she’s front-running successfully and will benefit a larger (staked) share than Mary.
If Mary did frontrun Jane, then Jane’s stake will be minimized because a larger stakeholder collected a larger curation share by upvoting earlier.
To have an idea of the curation rewards one can earn, as a smaller stakeholder, just look at my curation rewards. I generally vote earlier on great content and with a 100% upvote at ~1.25 SMOKE, I often earn more in curation rewards than I could possibly earn from self-voting.
If every day I would reward myself with my 10 upvotes, I would make:
- 10 votes/day
- 1.25 SMOKE/vote
- Upvoting when posting, thus not sharing any curation rewards
We will here assume that nobody else upvotes those posts:
(10x1.25)x7 = 87.5 SMOKE
This week my curation rewards were ~135 SMOKE from upvoting the content of others. That’s around 2% growth from curation only in a week.
Unless an accidental tap I do not selfvote because curation is obviously more profitable when well done. Plus, I prefer distributing the wealth otherwise the system would collapse. We need more stakeholders, dolphins and orcas for a sustainable platform.
The important wealthy middle class is created by a healthy distribution.
For larger stakeholders the math obviously changes. Larger stakeholders who care about their own curation rewards — 50/50 is a great hook for investors and active HODLers — they will often upvote later in the 30 minutes window or even wait for the window to end to loose less #curation rewards.
This works fine because at the same time, due to their larger stake, they also reward creators more even when upvoting later.
I hope this
For Dummies simplified primer, #guide on voting and voting power was useful. Those who want to learn more, best I can say is to actually experiment. Unless you’re a (big) data nerd and can extract all details from the blockchain to analyse and base your methods on... stay “real” and upvote great content. When you upvote is up to you. Know that each time you vote early it’s a gamble because no whale may follow... if you wait somebody with a larger stake may beat you to the punch.
Most of all... curate great content! Smoke will grow from awesome content and rewarding it accordingly. That will lead to better token value as the platform grows. If we only focus on maximizing rewards then eventually we risk building an unsustainable platform and economy. Related: Steem.
Curate on! 🦇
(1) Currently the slider is made available on Smoke.io at 50,000 SMOKE Power. Up until 50,000SP each upvote through Smoke.io is a 100% upvote.
(2) You actually have slightly more than 10 full votes per day because the 2% cost is calculated against your actual VP. So when you have only 20% anymore, a full vote costs only around 0.4% VP anymore. But also rewards less.
If you want to know more about the actual methods and math, head over to Steem(it) but remember that on Smoke we have a 50/50 split where Steem has a 75/25 split. You can find the Steem Whitepaper here (PDF).
PS: You can check your voting power on Smoked. Replace
@unnamed in the URL with your own account name.