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RE: Another Game Of Chance And Burning Of STEEM
That was my thoughts too. If we get to the point where a couple hundred Dapps are burning STEEM on a monthly basis, the impact could be significant especially as the inflation rate decreases going forward.
Well, let's assume a couple of hundred Dapps are pitching in 100 STEEM a week. That would be 20,000 STEEM. It still would take about 1.45 years to burn the inflation of just one week.
I'd hoped you have gotten my point with my first comment. Since you haven't, my point is that since the burn is so overwhelmingly useless, then perhaps something useful is actually done with it instead. For instance, perhaps it could be used to buy food for people that are in economic crisis. Wouldn't that be a wonderful marketing effort for STEEM? Perhaps it could be used to pay for direct marketing. Perhaps it could be used for rewarding authors. Perhaps it could be used for creating and supplementing new accounts. Perhaps it could be used to fund development. Or just any number of things.
This reminds me of a very funny video.
Sure, there are many uses for STEEM.
However, it might be a stretch to conclude that a burn is "useless". You make some big assumptions. Let us look at another situation.
@magicdice has 173K accumulated in, what, two month? That is 6,500 per month at the 10% burn rate.
@steem-bet accumulated over 10K STEEM in a couple days. Will they keep up this pace, see a slowdown or see more activity as time goes by? None of us can answer this.
What we do know is these types of games are very popular across the gaming spectrum.
Hence two applications, even in these early stages, can account for more than 25% of the total you forecast. And we know more games are on the road map for at least one of these projects.
My point is that you presume 80K burn a month when, as these two apps alone show, it could be much higher.
You still don't get it...
Where do you think earnings come from? Answer. It comes from inflation (printing of STEEM). Let's assume every single Dapp now and ever to come into existence were to burn 100% of their earnings resulting from inflation. It still wouldn't keep up with inflation.
The only way to halt inflation is for all Dapps to burn 100% of earnings (directly or indirectly from inflation), all users burn 100% of rewards, all witnesses to burn 100% of witness earnings, every account to burn 100% of SP interest, and burn 100% of SBD conversions.
If we want to reverse inflation, then in addition to the above, users need to burn their STEEM holdings.
It is definitely not a stretch to believe that a single Dapp or all the Dapps combined could never have any affect on inflation.
I think we are on different wave lengths.
Who said anything about halting the inflation? That is not the idea of burning STEEM. It is to reduce the total outstanding. Without inflation, you basically have a halted system where rewards are not issued but based upon existing holders sending it to newer people.
Nowhere did I say that the idea was to halt inflation.
you are right. You never mentioned halting inflation. That was a mistake on my part. I was just trying to put into perspective the other inflationary mechanisms that overwhelm the burn effort.
"My father worked two jobs so he'd have money to put in the money hole... And he never complained!"
lol
Funny
Exactly. It's a very limited perspective to fixate on this single app. 500-1000 apps doing the same can amount to something.
Even more optimistic than what I posted @markkujantunen.
I like it.
Completely agree. We have that many dapps doing the burn and we can see a major difference.