Because Steem wants to encourage long-term growth, it is hardwired to allocate 9 STEEM to Steem Power (SP) stakeholders for every 1 STEEM it creates to fund growth through contribution incentives. Over time this drives the ratio of the total STEEM value of Steem Power balances to the total of STEEM balances toward 9:1 . (It seems likely that the ratio will be somewhat greater than 9:1 due to continued net Powering Up of the newly printed STEEM.) It also means that long-term holders are almost completely protected from the dilution used to fund growth.
What this says to me, everytime a new Steem is created for content, 9 more Steems are created and distributed proportionally to SP holders. That's where the interest comes from.
I think the key here is keeping Steem valuable, the only way I can see that happening is if companies and small business suddenly start buying Steem to power up and promote their products or ads. Or maybe some other deal including ads. Speculators and regular users won't keep Steem price up forever, it'll peak (maybe it has already).
Hi Tai,
i really like the way you talk about how you compare how companies are started and funded. Specially the way you compare it to steemit.
May I suggest you talk about the interest rates for SP and SBD and payout times for each.
Thank you for the great show.
Quote from the white paper:
What this says to me, everytime a new Steem is created for content, 9 more Steems are created and distributed proportionally to SP holders. That's where the interest comes from.
NO it's saying that 10 tokens are created of which 9 go SP holders and 1 goes to voter/curators.
I'm going to have to watch the video later about your thoughts. I upvoted you. Please consider upvoting my post. https://steemit.com/steemit/@brianphobos/an-olympian-needs-our-help-steemit-please-read-this-if-you-have-ever-been-passionate-about-something
Nice video Tai! Thanks for all the hard work-
Do you know the only thing that gives me pleasure? It's to see my dividends coming in.
I think the key here is keeping Steem valuable, the only way I can see that happening is if companies and small business suddenly start buying Steem to power up and promote their products or ads. Or maybe some other deal including ads. Speculators and regular users won't keep Steem price up forever, it'll peak (maybe it has already).
very great video!
Upvoted