Some days ago, amidst a conversation with @dlmmqb , I came to know about my K.E ratio. The term was new to me and I had no idea about what it represents.
He told me that it’s a value that indicates whether a Hive member is a leech or an investor to the ecosystem. He also shared This Link with me, from where we can find out the KE ratio of any account.
Let me explain briefly what KE ratio is. It is a Rewards/Stake coefficient. It represents how much a person is staking as Hive Power in comparison to withdrawing the rewards earned from the ecosystem. The lower the value of the ratio, the greater is the person's investment in comparison to rewards earned.
A value between 1-3 is considered good. It represents that the person is not merely sucking out rewards from the system but investing back in it adding to the ecosystem’s growth. According to a post by beaker007
A KE of 2 means you took 50% of your earnings and Staked them... and did whatever you wanted with the other 50%.........A nice 2 should the aim for most with a KE ratio is equal to the 50%HBD/50%HP rewards pay-out. Essentially, it’s acceptable to withdraw between 10% and 50% of your earnings.
KE-Ratio as a guide is a post by azircon describing more details about KE ratio.
I just noticed that profile page on PeakD front-end is now displaying our KE ratio too. This way my amazing KE ratio of 0.74 is visible to everyone. 🤩
What does this value indicates about my account?
A value less than 1 indicates that I have stated more Hive than I have earned as author or curation rewards from the system. And that’s the truth!
Despite being on Hive for more than four years I haven’t become a dolphin yet. I am still a minnow. It is because my author rewards are never been too high. Also, in my pursuit of publishing only quality content, I am very selective about the content I write. That’s why I do not have many publications
Nevertheless, the lesser earning does not mean that I am not contributing to Hive ecosystem. Instead, the KE ratio of 0.74 indicates that for every 74 Hive earned I have staked 100 Hive.
So far I have earned 2445.64 Hive as author reward and 906.47 Hive as author rewards which makes a total of 3352.11 Hive earned from the system, while my current stake is 4512.73 HP.
It is because I not only staked my Hive but also converted most of HBD earned into Hive and powered them up time to time. In this process I even made a wrong decision of converting 300 HBD to Hive when the price of Hive was 0.8 dollars.
I not only converted and powered up HBD earned from author reward but also HBD earned from other sources such as contests winnings and outside earnings. It made it possible for me to acquire such a value of KE.
While I understand, many fellows on Hive are dependent on Hive earnings to make their livelihood possible, it is always beneficial to give back and strengthen the system you earn from.
Investing back to Hive in the form of Hive Power is a win-win. It is not merely the system that strengthens but also you, as a member, have greater rewards and a stronger value of contribution.
Now, with this new tool of KE, everyone can figure out where they stand.
Where do you?
Images are screenshot taken by me and edited using canva app