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RE: Burnpost update for SBD at 1 USD and accompanying rule improvements

in #steem3 years ago

Does burning really do anything since Steem is inflationary? The supply is still going up and up and up every day, indefinitely.

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  1. Burning makes it less inflationary (in the sense of supply increase)
  2. We are not only burning but going direct into the market and buying (using the overpriced SBD). This should have more of a positive effect on the STEEM price. An increase in the money supply doesn't necessarily lead directly to inflation (this time, using the word in the sense of increasing prices or, equivalently, decreasing value of money). What matters more is what supply or demand for money hits the market. That is the lesson of the massive printing of money around the world since 2007 while inflation has remained modest (in some cases negative). That happened because the printed money never entered the market and stayed on the banks books as reserves.