Hi guys, how's it going.
Today @acidyo made an announcement post for @reward.app - a new utility tool on Hive .
Following his work, in this post I will go into a little more detail about how it actually works and why we're doing this :)
How to use @reward.app:
Basically set @reward.app as beneficiary at 100%. You can do this both from https://hive.blog and https://peakd.com when creating new post. You can also set it to less than 100%, it won't cause any problems but it's best to just leave it at 100%.
What will it do
It will pay your post reward in all liquid form - so instead of HBD and Hive Power (locked Hive) it will send you HBD and Hive.
Additionally it will take 4% of your (author's) reward and pay it in Hive to the curators - in practice boosting curators reward, this time paid in liquid Hive instead of Hive Power. Tasty stuff for curators if you ask me.
This 4% is a default value that can be changed anywhere from 0% to 100% (more about that in a moment).
What's the cost
We take 1% fee from the author's part of the reward (0.5% of the total post payout).
Curator's share
When you post something on Hive, the total post payout is always split 50/50 between author and curators. @Reward.app can only manage the 50% that goes to the author. If you set @reward.app as beneficiary at 100%, upon post payout:
- 95% of the authors reward will go to the post author in HBD and liquid Hive
- 1% fee will be kept by @reward.app
- 4% will be paid to curators in liquid Hive
If you want to change this 4% value, simply send 0.001 Hive to @reward.app and in memo type any number between 0 an 100. If you send 0, it means that you don't want any additional payout for curators and 99% of the authors reward will be paid to you.
If you set it to 100% - all your reward will go to the curators. Of course, as mentioned above, you can select any number between those two. The higher the number, the larger part of your reward will be sent to curators.
Additional curation reward distribution
Since @reward.app manages distribution of the additional curation rewards, it can use different formula to calculate reward for each voter. In the future users will be able to choose which formula they want to use, for now we support two ways:
- proportional to curation reward - so this mirrors standard curation reward distribution on hive
- proportional to vote - the higher the vote, the higher the curation reward. There's no time penalty, also the order of the votes does not matter.
The second method is the default one currently because of something that @acidyo mentioned in his post - valuable posts, after getting some reward, often are not getting any more votes. That's because the expected curation reward for those votes is not high enough for many curators / stake holders. For them, it's more profitable to just upvote authors that are known for aggregating tons of votes - the expected curation reward is just higher.
With the method that does not punish the later voters we hope to change this situation a little :) But still - this is an experiment and we're gonna see how it's gonna work.
Why?
In general - I really like this idea because if gives more incentivize to power up to get those additional curation rewards. I think that in general part of the curation rewards should be paid in liquid form because then you don't have to power down to make use of your earned rewards. Powering down feels kinda like damaging your account while you might need liquid Hive to invest it into a project, send a tip, sell it or just power up to get more liquid rewards. @reward.app aims to bring this functionality to Hive.
Then, there's the problem of punishing late votes that I've mentioned above.
Of course it happens at the cost of the author's earnings, but - if you provide additional reward for curators, you can expect more upvotes which will make up for the loses. Or not? That's the thing - we'll see :)
What's next
We're gonna need a website so users can quickly and comfortably check and set their settings - like the curators share, curation reward distribution method etc. Then it would be nice to have an option for automatically adding comment like "This post uses @reward.app to pay 10% additional curation reward to curators" etc.
If community will like it maybe we can try to integrate it into the peakd.com interface as those guys are doing awesome job and are very open when it comes to adding useful things.