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RE: Thoughts on a Proposal to Buy and Burn STEEM using the DAO
Three forces may drive down the number of SBDs flowing in every day:
- We're currently at the peak of new STEEM per day in the inflation curve, not quite 90k per day. That number will be going down, slowly at first, then faster. By 2037, it'll be down to 22K (all else being equal).
- If the price of STEEM goes up above the haircut threshold, the virtual supply will start going down, which will reduce the daily STEEM production. For example, in Q1, it dropped into the 87K range.
- Selling SBDs and burning STEEM will (probably) have the same reducing effect on virtual supplies and daily STEEM production.
On the other hand, if the STEEM price goes up, that means that there are less STEEM per SBD, so that would drive the number of daily SBDs up.
So, depending on how things play out, 2400 could eventually be well above or well below the daily distribution into the SPS. (and that ignores the discussion of SBD interest rates, which might also pump SBDs into the SPS)
But yeah, to make a large reduction at today's values, it would probably need to be much larger. I'm happy with easing into it.
Yes good point, though assuming this thing runs for years and years may be a bit presumptive. :) It will be interesting to see how market forces react.