What is the curation return of hive-engine tokens?

in LeoFinancelast month

What is the curation return of hiveengine tokens_.png

Ever since the hive-engine tokens exist, I wondered what the return for curation on these tokens was. It's not that easy to calculate it but I gave it another try. My objective is not to get a precise number but rather an approximation to see what can be the result of this activity.

How to calculate the return from curation rewards?

For the Leo token, I have a specialized account (@achim03.leo) that upvotes posts with the LEO tag. I don't create content with this account. The only other source of income it has part from curation is from a delegation to @leo.voter.

With the flat reward curve it doesn't really matter when I vote with this account. This makes the calculation easier.

image.png
source: hivestats.io

If I look at Hivestats and the curation rewards the account generated, I can see that it was quite stable between 0.28 and 0.30 LEO per day during the last 6 days. For my calculation I took the average return during the last 6 days.

If I now compare this return with the amount of LEO that are staked on the account this would give a wrong image of the return. Let's not forget that the return that were generated during the last 6 days was actually based on the amount of staked LEO from the 7 previous days.

What is earned today is the result of the stake from 7 days ago !

I therefore tracked back the stake I had during the 7 previous days and for simplicity's sake took the average LEO power from this period. Since the account doesn't create content, the stake was quite stable during this time frame.

Even though I have now a stake of 573 LEO on this account, the average staked amount during the time period that I need for my calculation was 538.7 LEO.

Taking these numbers, I calculate a return for curating with this account of ~20% per year.

What about other hive-engine tokens?

I've tried to make the same calculation with another hive-engine token. I choose to do it for the CTP token first because the CTP token pays 100% liquid tokens and also because I have a specialized account with this token (@achim03.ctp).

For the CTP token I managed to calculate an APR of ~39%

What I have to say here however is that I had to approximate much more than with LEO. The curation rewards can vary very much from one day to another since the token doesn't have a linear reward curve.

For this account, I only use about 3 votes a day for manual curation. The rest is automated and set to vote at about 4 to 5 minutes after post creation. I use the manual upvotes mainly on comments and there might be some losses there because of the dust effect. For the CTP token, there is a 60% author and 40% curator split.

When I look at the difference between LEO and CTP, I imagine that the return on curating can be changing a lot from one token to another. I believe it's important to calculate this return by number of tokens generated, divided by the number of tokens staked. Doing it this way, the price of the token doesn't have any influence on the results.

For curation there are a lot of factors that have to be taken into account: flat curation curve or not, time of voting, manual or automated voting, voting percentage, quality of content.

What are you experiences with calculating returns for curation of hive-engine tokens? What returns have you calculated?


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I forgot the !BEER :)

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100 percent upvote, reblogged, tweeted and noise.cashed.

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Thanks a lot Bradley. I like the noise.cashed LOL

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Thanks for sharing man. 20% return on LEO 39% return on CTP. Even though I don’t really think about curation rewards at all. But it’s good to know

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I believe that these numbers show that these token offer a nice return which goes together with maybe also a bit a higher risk level. Thanks for stopping by!

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Interesting results... As Hive-Engine doesn't work atm, I will try to do it with approximate numbers... I have a bit higher stake in both tokens, but I don't chase APY at all

My LEO curation is around 18-19%, and my CTP rewards are around 28-29%... But... I have to say that my LEO curation is almost all automatic, but I upvote a lot of comments with my CTP account... But, still... I'm satisfied with these numbers... ;)

Cheers!

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I think that thanks to the linear reward curve we should all get around 18-20% for Leo if we don't leave the voting power at 100%. For CTP it really depends on when you set the votes. Since you do a lot of manual curation I believe you loose a bit on curation but I totally agree with you that APY is by far not everything. Thanks a lot for sharing your numbers!

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!WINE

P.S: First time I try to send some wine lol

One thing more... I have checked my SPORTS account, and I have there even crazier numbers... I think that curation APY there is between 40-50%, which is insane... lol... :)

I've heard somebody else saying that they made close to 50% with sports. That looks pretty interesting :-)

Sports token also uses the linear rewards curve btw

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Cheers, @achim03 You Successfully Shared 0.100 WINE With @ph1102.
You Earned 0.100 WINE As Curation Reward.
You Utilized 1/3 Successful Calls.

wine-greeting


WINE Current Market Price : 1.100 HIVE

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Thank you for your analysis!
I hope that CTP will switch to a linear curation curve just like LeoFinance does eventually. This way, actually doing manual curation is a lot more interesting since you won't loose out any return compared to just auto voting 5 minutes after a new article is posted...

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I think that the linear curve brought a lot of positive elements to leo. For example it becomes much more interesting to upvote comments as well. Interaction goes through the roof and the posts are simply much more alive.

For CTP at the moment you can still game the system with auto upvotes at a early stage. I also hope that it will switch to the linear curve but I don't know exactly what is planned in this respect. Hope you had a nice bath ;-)

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Exactly true. I've made it a habit to vote all comments I receive with a smaller amount as long as they aren't only made to farm said votes. This is something I can only do because of the linear reward curve and I love it!
The bath was great, really relaxed now, will move for the couch soon ;-)

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What I like most about CTP is the eager community members to be honest ^^

Apart from it, it is one of the most famous ones as well as most respected 😌

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Thanks a lot for your comment. The CTP community is really a nice place to be. We try to help each other progress and grow on this platform.:-)

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Do you have the number for hive handy? I don't do many tokens other than LEO.

Not to be the negative Nancy but don't you see a problem with 20% APY from curation alone? It should be another 20% in payouts generated if Im not mistaken. So we have an inflation of 40%, is that really sustainable?

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With Hive, curation lies between 10 and 18% according to how well it's done.

Considering that only a part of the token holders actually curate and create posts, I think that the inflation is somewhat lower. On the other hand there is also a part from the inflation that is burned through the proceeds from the ads on the platform. Another component is the number of people that join the platform and increase the demand for the token. It's actually quite a complex economy already :-)

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I just remembered that we also have the costs of the witnesses covered for running the nodes and stuff like that. i am nit quite knowledgable about the technical site of Hive, but I am pretty sure there are some reward mechanisms for running this whole thing.

What ads are you talking about?

Also I think it's flawed to think of new users as people who buy in. When I advertise Hive I say its a way to earn for free and I think that should be the starting point for every user.

Sorry for all the negativity but Im known to be always criticizing everything.

You are quite right about most of the points. However when you look at the money supply in fiat it's much worse there. 36% of all the money supply in USD was created this year alone.

What ads are you talking about?

The ones on LEOfinance.The income from ads is used to buy tokens back from the market and burn them.

Sorry for all the negativity but Im known to be always criticizing everything.

No problem there. It's good to have a critical view of things :-)

I'm not saying we need to get rid of inflation completely, Im just saying we have too much, maybe a halving in rewards would make hive much more stable or let it even uptrend - but im sure im not the first suggesting that

I don't see any ads on Leo but that might be my adblocker. Yes it was, I can see them now. Welp at least it's subtile.

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An APY above 20% really nice and 0.30 LEO per day is no joke.

I don't know how much I get daily from curation but is pretty low compared with you, maybe 0.03 or so. I'm getting more thanks to the posts and comments.

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It's a very interesting return I believe but it's directly linked to the size of your stake. The bigger the stake the more curation you will earn. I'm writing content with my main account and then I stake all the leo on this specialised account for curation.

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O.K....So let me get this straight.

CTP curation APR is around 39%....LOL

And LEO is around 20%???

Ummmm.....Holy LAYER 2's !!!!!!

That is awesome on both accounts!

Exactly, well that's for my two accounts at least. With CTP I have some auto upvotes around 4-5 minutes so I might get a bigger pie than manual curators there but still I think that between 20 and 50% is quite possible to reach.

Is 4-5min delay the sweet spot ? I heard that the later the worse but what about an auto upvote after 1min ? Or 6 sec ?

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For most of the tokens is best to vote around this time because they don't have the linear reward curve. On Leo it doesn't matter when you vote but I wouldn't vote before 1 minute either.

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damn quite the numbers!!

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Don't tell me, it's quite interesting to curate these Hive-engine tokens :-)

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Really valuable post. Thanks for doing this. I'm the @cflclosers Leo curation account. I saw you this posted on Noise

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Great to see that how noise.cash brings the hive family together LOL. Imagine how it will be once leo starts the microblogging service. Thanks for stopping by!

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Thanks for this analysis. I never looked so deep at curation optimization before, but given the 20% APY I think it is worthwhile to not let that power reach 100% ever. :)

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Exactly. That's the great thing with linear curation. The only thing to avoid is 100% voting power to get the same return like everybody else. Thanks for stopping by and the Beer!

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Your current Rank (54) in the battle Arena of Holybread has granted you an Upvote of 45%


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