Hi guys, how's it going. In this episode we're gonna check how recent #newsteem changes affect @tipU investments APR and what's the plan :)
As we discussed the potential outcomes of hf21 in one of the recent investor's reports, one of the potential scenario was a total annihilation of vote selling service on STEEM. While this is not an entirely the case, the voting bots almost completely stopped to receive any payments (income) because of the downvote campaign of different whales (some of them were always against vote selling, some changed their mind just recently ;).
I can totally understand this because ultimately I believe this will lead to an increase of the STEEM ecosystem value and in result the price of STEEM tokens - which is something very very good. As a voting service owner though I can summarize it like this ;)
Now, some bid bots reacted by retaliating the downvotes creating some nice flag wars drama but let's say this solution is not... optimal. I prefer slightly different approach by adapting. This is why @tipU curation project was created - you can read more about it here.
Basically the idea is to maximize the curation rewards (without any abuse but by actually curating valuable content) and use them as a source of profit, that can be paid out to delegators. Vote selling should be treated as an additional income but under the new #newsteem rules - so no more printing free money for vote buyers. This should stop the downvotes but at the same time it will surely lower the demand for the upvotes. But that's OK because we have the curation. Now:
Currently @tipU is powering down 3,428 STEEM weekly which allows to pay out 500 STEEM daily to investors (plus the income from vote selling but let's forget about this one for now). Taking into account amount of @tipU SP, this gives APR of 7% generated by curation rewards alone - of course that's not enough. The good news is that currently @tipU earns around 800 STEEM daily in curation rewards - it takes time to power down the additional STEEM POWER but in about a month it should be possible to pay out this amount to investors daily. This will increase APR to 11.2%. Still not enough.
This is where the curation project kicks in - according to https://steemworld.org/@tipu @tipU curation efficiency is at 42%. It should it much closer to 50% but with vote selling it was hard to achieve (vote buyers upvoted already high value posts -> lower curation reward). Good curators can easily go much higher then this.
The goal is to increase the curation efficiency to about 65% - which would allow to power down enough STEEM to keep the APR for the investors at 18% . Any additional income from vote selling will further increase the returns and all of this while actually doing something good for STEEM. So, that's the plan :)