"The total number of Steem doubles each year."
That is not right!
Every minute are created 800 STEEMS... That means (800x60x24x365) about
420 millions STEEMS the first year...
840 millions years the second year...
" wait, wait wait IT DOUBLES like I told you !!!"
1.26 billion the third year...
1.68 billion the fourth year...
2.10 billion the fifth year...
"Ok, now I get it! It doesn't double every year, it seems so only if you compare the second with the first year! In reality it grows 420 millions STEEMS every year, so the added % supply of STEEM is declining as time passes...
EXACTLY ! :)
It is right long term. The first year is an anomaly as the supply is issued.
I just want to understand this better too and clarify - you mean the first year ever is an anomaly as the supply of Steem is issued, rather than the first year of issuance after a reset? So presumably some time in 2017 it does start to go through the doubling/reset process and the supply of Steem is maintained at around 500m-5b thereafter?
Yes. Steem is created at a fixed STEEM per second until the STEEM per second falls to 100% annual growth. Each day the "inflation rate" is falling because the supply is growing relative to the rate, just like in Bitcoin. This "rate" stops falling once it hits 100% annual growth (doubling every year and then resetting).
Soo.... There is or is not a reverse split at all? I get everything else, but I'm still having trouble with that part.
@are-you-mad There is a reverse split every three years.
I don't understand it yet but I can tell this post is awesome. I'll read it a few more times and it will sink in soon. Lots to take in. I'm a super noob at this. Thanks for posting! Saving this for later. Following you.
The very same for me. I don't have a clue about what he is talking, but the post is great!
Same here. I have a slight idea what all this means, but I'll have to go over it all again :-)
Maybe this is a stupid question, but how do you 'save for later'?