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RE: ROUND 2 - COMMUNITY ORGANIZED RESCUE MISSION
I read somewhere that the 110% inflation is only on the first year, then becoming 55%, then 27.5%, etc. Is this not true?
This is certainly different than 110% inflation YOY.
The inflation rate started around 300% will gradually go down to 100% at the end of the first year and then 100% every year. In 3.5 year there will be 5 billions coins or something, we are at 185 million today.
If you only create new steem at 10% per year in 3.5 year you will have around 250 million steem.
The most disturbing thing is that this insane inflation serve no purpose at all. The question you should ask yourself is not how much inflation, it's why the inflation? I'm still trying to find the answer...
The more coins is printed the less valuable each unit becomes and the higher the market cap will have to be in the future to support the same price/steem, so yeah the clock is ticking if steem doesn't want to end up like dogecoin with a worthless currency ( price/unit)
Take a look at NEM the crypotocurrency for example, it has 9 billion coins, its market cap is the same as steem but each unit is worth a lot less than steem, 0.0039$ to be exact.
So what does this mean? It means that hyper inflation is killing the price per unit and since rewards are given based on the price/unit, the more you print the more rewards are going down.
In other words, the more coins you create, the less rewards ( in term of $ value) the blockchain can issue so again my question to the founders is why would you not want a minimum inflation and more rewards instead? And how can this platform be sustainable with so much printing? ( which is completely unnecessary I might add)