Which could be the average APR if HIVE also had linear curation rewards?
Hey! This is @eddiespino writing from my project! This is one of my first post on this community!
First I want to make a disclaimer. I am not a finance expert and what I'm about to write might show the lack of medication in my system hahaha. So don't take these calculations as facts, I invite you to make your own math and I'm sure you guys could do this better than me.
The other day I read the announcement by @LeoFinace where they told everyone that LEO curation rewards will be flat or linear from now on. A great step and a great decision IMO. I have read and heard @theycallmedan talking about this from some time and I believe it would be something very good if it was also implemented by HIVE and as I said on Twitter I'm happy that the LEO community is testing this.
Ok, let's do the math. I'm going to use my account as an example.
On this account I have 11,398.898 Hive Power
According to HiveStats a 100% vote is close to $0.12, taking in consideration the flat curation reward scheme for each vote the account could earn $0.05, with current prices that would be a little over 0.3 HIVE. If the account made 10 full votes a day it could earn 3 HIVE, maybe a little more. That would be a growth of 0.02% according to my bad math and messy calculations, please correct me if I'm wrong. And if I'm not mistaken this could convert into an APR of 7.3. I think it's not bad, because this would be almost guaranteed as long as the account makes all the votes available daily. To this we would add the 3% that is earned by having HIVE staked, so in total the APR would be just above 10%, 10.3% to be precise.
With these settings autovoters would be discouraged and late manual voters like @thecallmedan or @darthknight would earn more with their big votes. If this decision was up to me I would make it, but I would like to listen to more points of view.
Of course removing the curve curation rewards would take away the joy of manually finding a good post and earn more than 500% on because you voted before some whales. That has happened to me and it feels great.
What do you think?
I repeat, I'm not an expert. My calculations may be wrong. I would like to see a real expert making a calculation. Thank you for reading! Let me know your thoughts in the comments.
All Rewards of this post are going 100% to HivePower and powering up LEO too.
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Posted Using LeoFinance Beta
