Hello dear friend @sahmie. I hope that you will be doing well and enjoying the time well. I must praise the way you have completed this task. You have beautifully described each and every part of the task well.

First of all you have discussed your thinking about the inflation rate. I agree with you that when our the supply of a currency is increased then it's value depletes because it's purchasing power decreases.

It can also be considered a Deflationary Cryptocurrency as it adopts the mechanism of deflationary currencies to control inflation.

You are right here. Actually, Steem token is inflationary in nature because it's supply increases with the passage of time but some Deflationary elements are also followed by Steem to manage the balance between inflation and the token's supply.

Thanks a lot for sharing such a beautiful entry and I wish you a very good luck for the contest.