Curation Rewards Analysis | Stake and Efficiency Dependencies?

in #curation9 months ago

Hardfork 21/22 introduced quite a lot of changes on the Steem Blockchain. Among the others, the important ones for curation was the 50/50 share between authors/curators and the Reward Curve.

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The 50/50 split was debated a lot and there was pro and cons. The reward curve was not that much debated, as it was pretty complicated to understand. In the end it turns out that the reward curve had much bigger impact that the 50/50 split itself.

This is from the author stand point of view!

I was curious to see how the curation rewards is affected from the reward curve. We all know that efficiency in curation is important. Vote before the big guy come, and somewhere around 3 to 4 min.
The reward curve in theory should give large stakeholders better curation rewards.

So, I did some manual digging into the curation rewards of accounts with different stake in SP tracking their stake and efficiency. The tool used was Steemworld 😊. Unlike some of my other analysis this is quite a manual one and with not a lot of data.

Because of this a disclaimer is needed that the data is indicator and not a precise value.

Here is the table with calculated ROI.

SPDaily CRCuration EfficiencyCR per 1000 SPROINo of accounts analyzed
1,0000.1841%0.186.57%5
5,0001.2050%0.248.76%3
20,0004.0047%0.207.30%3
50,00011.0040%0.228.03%3
150,00046.0063%0.3111.19%3
556,000201.0060%0.3613.20%1
638,000112.0040%0.186.41%1
686,000121.0043%0.186.44%1

CR stands for curation rewards.

Accounts with SP starting from 1000 to 686k were analyzed here. Not exactly sure but I think to exit the superliner an account needs to have somewhere around 300k SP. After this the reward curve becomes linear.

From the table above it can be concluded that efficiency is much more important than the amount of SP one have. If someone vote with better efficiency even with smaller stake it can have nice curation rewards. Some irregularities (or maybe not) can been seen here like the 63% efficiency of 150k stake gives 11% ROI and 60% efficiency of 556k gives 13% ROI.

The difference in CR per efficiency is quite high. Voting with 40% efficiency gives half the CR than voting with 60% efficiency.

According to this the ROI on curation varies between 6% and 13% for an efficiency between 40% to 60% in voting. I have seen an account with 75% efficiency in voting and it reached around 15% ROI.

Fun fact: The Steem blockchain gives you 15% just for holding SP 😊.

All the best
@dalz


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Ha I just recently made a post about this as well (I can remove my link if need be just thought it was relevant. I think I'm making around 14% - 16% curating currently.

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I'm around 80% efficient though.

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Glad to see where coming to similar conclusions on % APR. Wish Steemleo had some tracking features so I could try and start optimizing my curation rewards on there as well.

86% efficiency!
Nice one :)

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