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RE: Steem price and low demand - Fix it finally! Solution is waiting

in #steem • 8 years ago (edited)

It just gives significantly less inflation compared to Steem but there is still huge SP inflation and so it's no cushion in general

That's not correct in general. When 90% of STEEM is powered up, SP has (approximately) no inflation at all (more units are created but it has the effect of a stock split where everyone gets proportionately more shares; no one loses value). When 100% of STEEM is powered up, SP has about 10% net inflation (long term average; currently this is higher). Currently STEEM is 93% powered up, or 86% powered up if you include virtual supply (debatable whether this is correct), numbers which have both continued to fall more or less continuously since the launch. The meaning of all this is that SP currently has very little inflation, arguably negative. The future is uncertain but there is no reason to believe that SP "real" inflation would ever closely approach the 10% maximum in practice.

8 years ago in #steem by
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     8 years ago 

    Thanks for the details. Even that doesn't change my major major objections:

    • SP inflation (0-10% pa) or even negative in certain cases
    • STEEM inflation (100% pa)
      Even now it's a "punishment" for both cases. As I've written we need inflation range that doesn't frustrate users from holding STEEM/SP.
    • SP inflation (0-1% based on SP/STEEM ratio) - fair inflation that everyone can survive.
    • STEEM inflation (10%) - still enough to motivate for SP and still usable for daily traders trading STEEMs

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