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RE: With the value of Steem continuing to drift lower, is there something fundamentally being missed?
Steem has 24% inflation. That is the primary reason for price to go down when we have a wall of 100mn liquid steem sitting on exchanges.
Inflation should be reduced down to 2-5% as the case with BTC and ETH.
This is a very interesting point and one that I have been concerned about for over 2 years.
To maintain what is essentially a zero sum gain in the value of #Steem a considerable amount of "fresh cash" has to come into the #Steem Ecosystem just maintain the effects of Inflation.
That is also not allowing for any Power Downs which are being done in some cases, just to keep the wheels turning.
Thanks for the contribution to this Blog.
Excellent comment.
Stephen
Here is my recent post showing computations
https://steemit.com/actnearn/@prameshtyagi/actual-steem-inflation-is-way-above-planned-inflation
How did you arrive at a 24% inflation rate? The emission rate is just above 8% right now and it is reduced by about 0.5% per year until it reaches 0.95%. I understand that the conversion of SBD to Steem increases the supply but that is offset by the fact that the emission rate is lower during the times that SBD is "printed".
In reality the emission rate is below 8% right now since the SPS is printing SBD instead of Steem. In the aftermath of the bear market crash from the end of last year a huge amount of SBD was converted to Steem during the following months but that was a one off event. Saying that the inlfation rate is 24% does not paint the whole picture.
pls check my recent post for that
https://steemit.com/actnearn/@prameshtyagi/actual-steem-inflation-is-way-above-planned-inflation