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The 75-25 rewards simulation and POB tax discussions.

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@amr008
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Good evening to everyone , a couple of days ago I had promised that I will post about this .

Due to the confusion of actual reward split and the taxes of POB I have to delay it .

Now since that is cleared out , I decided to gather the data again and run the simulation .

What does it mean ?

It means that I have gathered the data from the beginning for POB and I have converted the actual rewards to 75% 25% .

Let us go through the data and then we shall discuss what it means -

1. Rewards daily -

Here -

Blue line = Author reward
Red = Curation
Sky blue = token benefactor ( which means tax goes here )
Yellow = Comment benefactor ( which means you have set someone else as beneficiary )

Well the first graph ( above ) is actual rewards and below is the simulated .

  1. If you see now , the actual rewards and the curation rewards are sticking to each other meaning that both are almost equal ( not equal , they can't be because of the taxes but almost equal )
  2. But in simulated ( 75% author and 25% curation ) , there is a huge gap in between author rewards and curation rewards on a daily basis .

This shouldn't come as a surprise to anyone since this is the expected pattern .

2. Average rewards of Author and curation

For simplicity purpose , I have remove the token benefactor and comment benefactor rewards .

Now if we take a look at Average author rewards and curation rewards -

If you observe this , you can tell that

  1. In the initial days when POB was launched both average author rewards and curation rewards was high ( as expected ) but then average author rewards have been consistent ( around 3-4 POB per post and comment ) but average curation reward is around 0.3-0.4 .

  2. The simulated version tells that author rewards ( average ) increase ( obviously ) and the curation is almost negligible .

What insight does this provide us ? This tells us that there are numerous users who are earning way too less curation rewards right now ( since the average is too low compared to author rewards ) and that would reduce further if 75-25 is implemented .

3. How would the richlist appear ?

Well considering only author and curation rewards ( this excludes buying and selling too )

The richlist would appear like this -

4. The total reward distribution would seem like this -

Why you shouldn't consider these data too seriously ?

Because this is not the most accurate representation of 75/25 . It takes more than a simple script to simulate everything , all I can do is the conversion from 50/50 to 75/25 but

  1. I can't change the actual vote value because of the less curation reward which result in further decrease in curation rewards .

  2. I can't change the buying and selling of POB tokens here . There are many users who bought POB and earned curation rewards , now if 75/25 pattern was there they wouldn't have bought POB at all most probably ?

  3. If there was no buying of POB ( because of less curation rewards ) then ofcourse the price of POB would have been less and inturn the activity would have been less and inturn the average author rewards would have been more .

So all these things can just be imagined but can't be simulated using a simple script .

Oh well I can't even write a script which can take the 2nd point into factor , how can I determine if people would have bought POB or not if it was 75/25 ?

So don't take this too seriously , this is just for fun that's all .

What do I favour ? 50/50 or 75/25 ?

I actually support 50/50 because it takes a lot of time to accumulate the tokens which isn't easy at all .

We either have to invest time or invest money to gain sufficient tokens to earn good amount of curation rewards so I actually support 50/50 .

45/5/50

But actually right now we are 45/5/50 on POB . That means of the overall rewards a post gets , 45% goes to author , 5% goes to null , 50% goes to curators .

Couple of days ago I posted about it , you can check it out here. It can be also put as -

10% tax is removed from the total rewards and then out of that 47.36% goes to author and 52.64% goes to curator .

Both are same - both calculations provides the same answer so right now if we leave tax out - we are left with 45/50 author/ curation rewards .

My proposal / suggestion / advice

Well right now , we have taxes for both native and non-native posts and comments and the tax is as I mentioned 5% of total rewards or 10% of author rewards ( both are one and the same ) .

This provides no incentive to use the particular front-end at all ( maybe because of contests or engagement project people might be using the front-end) . If I post from some other front-end then also there is a tax and if I hop on to POB front-end then also there is a tax so my suggestion is actually to change this .

What to change it for ? - 20% tax for non-native posts / comments and NO tax for native posts/comments sounds good to me .

We gotto provide the users who are hopping on to the front-end more rewards than those who aren't using the front-end .

While some are discussing about 75/25 , we don't even have 50/50 yet . With the tax in picture , there is 0 possibility for an author to receive 50% of the rewards which doesn't seem fair to me .

Let me know in the comments if you vote for or against changing the existing 10% tax to 20% tax for non-native and 0% tax for native posts/comments.

That's it from me today , I will be back tomorrow with another data analysis .

Regards , MR.

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