Can someone explain to me why does the APR% return increases with increase in value of STEEM.
This would imply that the circulation/creation of STU increases with increase in value , doesn't this mean it gets highly inflated as the price goes up? and subsequently creating a downward price pressure on STEEM Price.
quite similar to how the US government keeps printing more money when they need to.
sorry not an economist ...
Actually it was because of the runup in SBD, not STEEM. The reward functions adjust for changes in STEEM price (using witness price feeds). There is no similar compensation for changes in SBD premium (SBD price in excess of $1 floor).
But whenever there is bull run SBD prices will run up...
That depends on the maturity of the market.