You are viewing a single comment's thread from:
RE: Steem Dilution - Why? - Explained
It's more than that at the moment, however the Curation and Creation Rewards are more too. Overall Dilution for the next 12 months is running around ~270% (it will settle down to roughly 100% from then on), so Steem Power Holders will be getting diluted 10% of that (~27%).
That being said, if you are an average contributor to the Steemit Platform, your dilution rate is ~zero, as you will receive back your dilution in Curation and Creation rewards. If you are an above average contributor, then you will be gaining in relative terms...
Doesn't this assume a constant rate of demand for Steem that is less than the rate of dilution? Theoretically if demand for Steem increases at a rate that is equal to the rate of dilution the value of the token should remain constant. Curious to hear your thoughts on this, but a lot of these discussions seem to be founded on the assumption that anyone has any idea how much demand there will be for Steem in the future (e.g. how many apps will be built using Steem, how much demand for those apps there will be, how many people will be using Steemit, and how often). Don't know if that's just me missing something though (totally what it feels like). For example, if someone makes an app that creates infinite demand for Steem, the value of Steem would increase to infinity and you wouldn't need to bother with curation or posting because your Steem would be worth infinity. Obviously it's not likely, but I think that does illustrate the point. An app that simply create a "shitload" (to use a technical term) of demand would have a similar, just diminished, effect right? Great post btw. Explained some really tough concepts very efficiently.
Hello @andrarchy. Happy to address your thoughts.
What has been written in my post is only about the supply side, demand and thus prices are a different matter. Your points are correct. The fact of the matter is, the price of Steem tokens will be anyone's guess in xtime.
I think the answer to your question, is that, I am talking about % ownership of Total Steem Tokens, Not the value of your holding. Think of it this way.
The value of your holding could be higher, lower, or the same. That depends on as you put it the demand for Steem (and thus the Price). One thing that is certainly true, your % of Steem Control has fallen...
Let me know if this answers your question, or if I have misunderstood. I do have a tendency to answer the wrong question ;)
Yup, perfect answer. Thanks!
Would this actually be diluting the "power" of the Steempower as well?
Yes, but by much less. Steem Power received 90% of all dilution back as incentives. However, pound for pound, a single Steem will lose 'power' with dilution