My KE Ratio. What Does it tell?
Some days ago, amidst a conversation with @dlmmqb , I came to know about my K.E ratio. The term was new to me and I had no idea about what it represents.
He told me that it’s a value that indicates whether a Hive member is a leech or an investor to the ecosystem. He also shared This Link with me, from where we can find out the KE ratio of any account.
Let me explain briefly what KE ratio is. It is a Rewards/Stake coefficient. It represents how much a person is staking as Hive Power in comparison to withdrawing the rewards earned from the ecosystem. The lower the value of the ratio, the greater is the person's investment in comparison to rewards earned.
A value between 1-3 is considered good. It represents that the person is not merely sucking out rewards from the system but investing back in it adding to the ecosystem’s growth. According to a post by beaker007
A KE of 2 means you took 50% of your earnings and Staked them... and did whatever you wanted with the other 50%.........A nice 2 should the aim for most with a KE ratio is equal to the 50%HBD/50%HP rewards pay-out. Essentially, it’s acceptable to withdraw between 10% and 50% of your earnings.
KE-Ratio as a guide is a post by azircon describing more details about KE ratio.
I just noticed that profile page on PeakD front-end is now displaying our KE ratio too. This way my amazing KE ratio of 0.74 is visible to everyone. 🤩
What does this value indicates about my account?
A value less than 1 indicates that I have stated more Hive than I have earned as author or curation rewards from the system. And that’s the truth!
Despite being on Hive for more than four years I haven’t become a dolphin yet. I am still a minnow. It is because my author rewards are never been too high. Also, in my pursuit of publishing only quality content, I am very selective about the content I write. That’s why I do not have many publications
Nevertheless, the lesser earning does not mean that I am not contributing to Hive ecosystem. Instead, the KE ratio of 0.74 indicates that for every 74 Hive earned I have staked 100 Hive.
So far I have earned 2445.64 Hive as author reward and 906.47 Hive as author rewards which makes a total of 3352.11 Hive earned from the system, while my current stake is 4512.73 HP.
It is because I not only staked my Hive but also converted most of HBD earned into Hive and powered them up time to time. In this process I even made a wrong decision of converting 300 HBD to Hive when the price of Hive was 0.8 dollars.
I not only converted and powered up HBD earned from author reward but also HBD earned from other sources such as contests winnings and outside earnings. It made it possible for me to acquire such a value of KE.
While I understand, many fellows on Hive are dependent on Hive earnings to make their livelihood possible, it is always beneficial to give back and strengthen the system you earn from.
Investing back to Hive in the form of Hive Power is a win-win. It is not merely the system that strengthens but also you, as a member, have greater rewards and a stronger value of contribution.
Now, with this new tool of KE, everyone can figure out where they stand.
Where do you?
Images are screenshot taken by me and edited using canva app
View or trade
LOHtokens.@amberkashif, You have received 1.0000 LOH for posting to Ladies of Hive.
We believe that you should be rewarded for the time and effort spent in creating articles. The goal is to encourage token holders to accumulate and hodl LOH tokens over a long period of time.
Yep, the idea of KE is in General a good thing, but...
IMHO - Conclusion: Not a good indicator at all since it is more likely a dangerous "tool" to judge the behavior of a Individual using Hive. As Usual - No Rules Without Exceptions
And since we can see how much money on some accounts are moved out of the so "precious" ecosystem by some wealthy second accounts, "owned/handled" by so called good examples of good hivers, i can not take this index for serious.
That says it all.
I think any member's worth cannot be judged by single indicator. One needs to assess a holistic view of several indicators.
For instance, if someone judges my account value via HP, it would appear little given the fact that I have been on the platform for more than four years. Nevertheless, if K.E ratio is added to it, the picture is changed.
Likewise HP and K.E alone are not enough to assess a member's attitude towards the platform. I have seen accounts whose post yield high rewrds while they add nothing in terms of reading others posts or replying to comments on their own posts.
So, yes, any individual indicator doesn't say it all and everything have its downside too. I agree with you
That's where a lot of the danger is lying, many, too many aren't researching let alone observing what is really going on... that would certainly need a free mind. Their excuse; Who has the time for that !?
In the little more then seven years i'm here i have given most of my time to help humans in thousands of ways, also gave my rewards away to help some humans in need in their real life... to me that would be more important to show off.
But the hive community isn't what it could/should be. It's mostly about who's getting the Lambo first. Sad truth truth !
That's unfortunate for the whole system.
The effects of such good deeds will surely come back to you in real life. Nevertheless, there can be no method of showing that off on Hive profile.
Never say Never... 😏
KE ratio is all well and good. It is a good idea to try and sort out bad actors.
But showing off your KE scores just reminds me of school swots and I know full well what I thought of them!
We as Silver Bloggers are all over 40 and I would have thought we have enough common sense to read behind this number and actually look at someones account as a whole, what about all the intangible benefits to Hive someone does?
I must admit I was surprised when I saw it on PeakD, but seems the powers that be are trying to get rid of people, so another tool in their armour I guess.
I also wanna know what you thought of them 😉
In the subject of Stats and Research Methodology we studied about qualitative and quantitative analysis. Qualitative analysing intangible is always difficult to assess and present, while quantitative is easier in all aspects.
Ease is the thing most of us prefer, don't we? So the intangible benefits can only be assessed by those who have got the eyes and hearts to do that. Is there any other way?
I also wanna know what you thought of them 😉
In the subject of Stats and Research Methodology we studied about qualitative and quantitative analysis. Qualitative analysing intangible is always difficult to assess and present, while quantitative is easier in all aspects.
Ease is the thing most of us prefer, don't we? So the intangible benefits can only be assessed by those who have got the eyes and hearts to do that. Is there any other way?
Oh I am sure you know!
I generally prefer something complex to something easy if truth be told as I like to know the whole story or accurate answer. As a Process Engineer designing oil and gas equipment, the easy way can kill someone if it is not correct!
But as a rule of thumb the KE is a good indicator, but like anything it will conveniently not be applied by the powers that be to their friends etc..
I know if I didn't curate anyone with a KE greater than 3 then we would be driving even more people away from Hive. But it is what it is.
Every tool needs to be utilized smartly to bring the most out of it.
Ah but then it's not easy...
Yeah! That's a fact, indeed
!LADY
View or trade
LOHtokens.@hive-124452, you successfully shared 0.1000 LOH with @amberkashif and you earned 0.1000 LOH as tips. (12/50 calls)
Use !LADY command to share LOH! More details available in this post.
It's an interesting idea. I preferred its usefulness in looking at the Hive ecosystem as a whole, where we can all see that Hive is working pretty well. I wrote about it here.
The name isn't really very helpful, though, it might be better to call it the investment co-efficient or IC.
I feel the same on Hive as I do everywhere else: you get to know people over time and build trust and respect for each other. I know people who have been on Hive a long time and who have very little in their account although they have earned a lot and that's because they have powered down and given their money to people who have needed it.
I think it's great to have you here, building your account little by little. I hope you enjoy Hive 😍
I read that post of yours. That's interesting how you have utilized the metrics for presenting the bigger picture. You have said at a point "Are other worries about accounts powering down and selling their Hive valid, other than choosing whether to reward them with your stake?"
There might be people who would need a quick decision based on something tangible for the choice, so this metric have this utility for it. (While I believe relying on only one indicator is not a good-idea) this metric may give a chance to some relatively unknown accounts to be curated.
Agreed
That's important. When the trust is built, we become Compassionate.
Of course, I do. The place is like a home to me
Author Rewards 10900
Curation Rewards 4000
Staked Hive 26500
KE 0.56
I was fortunate to own thousands of Dogecoin back in 2021 that suddenly pumped to be at par+ value with Hive at the time, so I swapped a lot of Dogecoin into Hive. Overnight, I became a Dolphin. I still have 15,000 Dogecoin valued at $0.24 each.
Good decision + Luck = Dolphin 😁
!LADY
A problem is that such a simple metric can be misinterpreted without context.
View or trade
LOHtokens.@kerrislravenhill, you successfully shared 0.1000 LOH with @amberkashif and you earned 0.1000 LOH as tips. (12/40 calls)
Use !LADY command to share LOH! More details available in this post.
Yeah, the timely decision added to your growth.
I was not fortunate with regard to dogecoin. I happened to buy it at ATH where it never returned 🤪.
This post helped me understand a lot about KE Points ( 1.02 ), and when I did a hive power up, these points decreased to 0.42. I still don't understand whether it is more beneficial to have fewer points or more points. What I do understand a little is that if you power up, these points will start decreasing.
The lesser points means that your investments are higher.
Well, whether it is more beneficial or not, it depends on context. I mean what you count as benefit 😏
But I wants to know the point may higher or lesser which one is better?
Higher point means you have withdrawn more Hive from your accound.
Lower points means, you have invested more Hive in your account
Thanks for the knowledge, I was really confused about it.
I am glad it helped
Congratulations on your KE ratio under 1 but I am afraid this will be another metric that will be taken in isolation.
Hasn't the reputation almost become obsolete above 40-50 rep? Sadly, this might be the case with this KE.
Am I an 'extractor' if I spent my Hive rewards on a Hive game or project and now have 10 KE ratio? Or if I have a medical emergency, to take out my hard-earned Hive Power? What good is your HP when you can't use it lol.
That's another question to ponder on.
Seeing and analysing anyone's performance in isolation based on single indicator may not display the right picture.
I think KE is an indicator that adds to the quantitive analysis of an account, answering some "WHATS", The "WHYS" are then needed to be analyzed
Thanks for stopping by @pravesh0
Hope you are doing well