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RE: It is Time to Stop the Overprinting of SBD to Decrease STEEM Inflation
- The
convertoperation is still available on the blockchain and you can use it via cli. It's not available in the Steemit UI, but that doesn't mean it was taken out. If you want to make the most of your tools, you must first know them better. - The modification of the printing threshold and interval was added in HF 20 as a counter measure to SBD being manipulated on exchanges (by external or internal players, that I do not know) because of its very small supply (about $20-30 mil). This adjusting mechanism is not perfect, but it's snappier than the old one, which was working between 3 and 5%. STEEM inflation is not caused by SBD printing, it's hardcoded in the blockchain and it goes from 9.5% to 0.5% in about 20 years, at 0.5% decrements yearly.
Steem inflation does not follow that schedule precisely, because of the virtualization of Steem at point of payout.
Pre-payout Steem follows a specific schedule, but the actualized inflation can be different precisely because of the issuance of SBD (where some Steem is virtualized, and 1 Virtual Steem can become potentially 10 or 100 Real Steem later down the line, based entirely on the Steem Price Feed).
There are two points at which Steem gets created. The first is the normal point of issuance where witnesses are paid, Steem is added to vesting fund and reward fund etc. However a portion of Steem in the reward fund gets virtualized for SBD, where it later gets realized in the second point of creation for Steem: SBD conversions. 1 Steem virtualized at point of payout can become 10 or 100 Steem at conversion if the price falls enough (and the haircut threshold gets pushed down enough).
The first point is governed by the inflation rate you described. The second point is determined by the market (Steem price which informs price feed, and conversions), and can't be precisely predicted.
I am fully aware of the convert operation availability. However, the majority of people that had SBD did not take it upon themselves to figure out how to use the advanced wallet since they barely understood their wallet. Most people only know how of the Steemit.com interface to their wallet. The next best option for them was to use the internal market. This was something that was intentional by witnesses and Steemit Inc. They intended for people to take the option of using the internal market instead of using the conversion option so the supply of SBD would stay high.
You are mistaken about the STEEM inflation. It is currently not following the inflation rate as you described. This is why there is over 11 million new STEEM created during the last 3 months on top of the normal STEEM inflation.
The inflation rate you described would appear like a straight line. Just look at this chart. This is the actual data taken ever single day since the middle of February of 2018. By the way, the inflation rate you described is only an approximation. To be exact, it started at 9.5% and is reduced by 0.01% every 250,000 blocks. Current inflation is 8.59%. Now you are equipped with the current inflation rate, go out and collect the data yourself and do the math. You will be shocked.