RE: Where does all the money come from on Steemit fully answered -- Can it continue? -- Absolutely yes!
Good analisys, but you got this part wrong:
This value is the key to how it can be sustained. Remember, it was shown that the inflation rate of the coin creation is constantly reduced until there is no inflation at all. This means each year there are less coins created, so there is less revenue to pay the authors, curators, stake holders and witnesses. So we need to have a revenue source other than coin creation (inflation).
It is actually the opposite. The inflation rate means that each block produce more coin than the last one:
If on first year 100 coins were produced, on the next year 109,5 coins Will be produced.
The coins generated Will always increase, with the inflation rate reach the fixed rate on 20 from fork 16.
Just How our Fiat currency Works, but with predefined inflation rate.
Its a different concept from most of the coins.
That way, scarcity is one feature that wont be taken in consideration in the coins value.
The value of the coins come from actual use. So far It is only used on steemit, but It definetly have potential of other uses.
If SMTs are implemented the right way, something big might be coming.
I like this opinion
Very INTERESTING!
This something I did not know. Is there somewhere I can read more about this.
And thanks for taking the time to comment!!
Its on the whitepaper, you Just got a bit confused there.
It states that the inflation rate is what Will be reduce each year, until It reach a fixed rate of 0,95% (If i remember the number correctly)
But It is still an inflationary coin.
The difference between other coins like BTC is that there is no Max amount of coins set.
OK, Thanks. I will run an analysis on the coins created and see what the change is every 250,000 blocks to confirm.
Thanks again for this angle.
Yes but we need the mobile wallet, without one the Steem adoption and real use will be very limited in the future, I think.
Also you should take in account how much STEEM is closed in SteemPower, this lowered inflation too in some way. Same in the opposite way, massive power downs can increase the inflation.
Absolutely! Apart from just the wallet though, we need the Steem Blockchain's platforms to be easily usable on mobile.
For Blockchain tech to really be adopted, it's features need to be easily accessible on the most common device we have, the mobile.
But of course, this is something that is up to us, not anyone else; and that's the point of all this.
Good luck out there everyone!
I also think that wallets outside Steemit is something that definetly must be done.
I don't think the STEEM locked and power up/power down have an actual effect on the inflation, because they are not new coins created.
They are coins that are already circulating. The effect of these actions is related to the price on the market, not inflation.
no, steem locked in SP is not circulating - this is the same mechanism that central banks use to control the money supply. The more steem is locked up in SP the scarcer the circulating steem is
Indeed. I learned a lot on these 28 days since i wrote that comment.
The steem locked up works as a up force on the price.
Looks like you understand a lot about economy and markets, would you mind taking a look at these 2 other posts i made and give me an opinion about what i wrote there?
https://steemit.com/guide/@phgnomo/steem-economy-guide-part-1
https://steemit.com/steem/@phgnomo/steemconomy-let-s-talk-about-price-and-value-of-steem-sbd
Thank you in advance!
I've read them and they are very good. I would have offered a slightly different take on some of the concepts but I don't think yours are wrong
For me value in the Steemit and many other systems is linked to time. Time is the ultimate scarce resource. The more time people pass in aggregate on Steemit, writing and reading posts, the higher the aggregate value of the platform. The tokens are "units of account" to keep track and distribute that value
But its kind of hard to evaluate creative content based on time spent.
Some one may spend 30 minutes and create really good content, or spend 3 hours and create absolute shit.
I see the value around here as a reflection of what the community as a whole see as valuable.
Absolutely, there is no simple recipe, we can only experiment and add more influencing factors in order to refine the model - see Ashby's law of requisite variety.
Medium manages somehow - it measures views, time spent on an article (probably in a pretty crude way, I don't know exactly how).
I believe Steemit should draw inspiration from Medium and become more like it in order to improve. Once it reached that level it can and should strive to become even better.
Ohhh shit I'm going down a
juicy rabbit hole, thank you!
I agree with this, though it seems quite a big task to implement what aspects of Medium's reward structure, especially when we don't know the specifics.
wow you spent alot of time on your research, and you have gone into a lot of depth, thanks for sharing.