Inflation Math For Hard Fork 19 - 157% Steem Inflation Must Be (My Math) Error, Right?
I was as overjoyed as most users were to see the increase in post rewards with HF 19. However, something is really bothering me - the inflation math.
I am going to use my account for reference. At the time of writing, my account is worth $16,227.51. I am essentially fully powered up, minus some SBD on hand for tipping.
As a control, at the time of writing I upvoted one of my own comments from earlier, then removed and re-added it to confirm.
My comment went from $13.36 to $20.29.
$20.29 - $13.36 = $6.93 gain in 1 vote.
If I understand the voting changes correctly, I could do this 10 times per day. Incidentally, my voting power was around 93-95% for this test, so $6.93 could be slightly overestimated.
$6.93 x 10 = $69.93
$16,227.51 / $69.93 = .431%
.431% x 365 days = 157.31% annually (or roughly 1.3% every 3 days)
I realize a lot of things changed this time around - the voting influence flattening, the vote power change, etc. But I am having difficulty grokking how Steem could be throwing off an almost-guaranteed 157% annual before any capital gains or losses.
I read that the rewards pool may readjust after the fork, but the implication was it might be too low, not too high. I realize some of this power has come at the cost of those who were benefiting from the exponential curve, but the numbers still don't compute in my head. I have not seen the platform explode with worries about this, so I assume I am missing something. What is it?
Is this just the rewards pool re-balancing / filling a back-log? Am I going to be editing this post to remove an embarrassing math error shortly? Thanks in advance!
I did not quite understand it...
Steemit is really interesting. Much more to learn for me.
Keep in mind these numbers are way out-dated. The rewards are much lower than this post indicates, which is actually a GOOD thing, because they were unsustainably high when this post was written.
Thanks for checking it out!
Good post. Upvoted. And how does this correspond to the decline against BTC since HF19 was instituted?
I'd agree that it's expected profit-taking. I'm curious to see if power down behavior changes, though.
Please ignore current price movement, STEEMBTC was waiting for profit takings for weeks so HF19 was almost irrelevant on the price (so far).
Personally I am loving this Hardfork but in the back of my head I am having a hard time accepting it completely as it is quite bizzare as the problem you just explained in numbers.
As i said earlier, let's wait 7 days and calculate again. But so far it looks bad, real bad :)
Or, depending on how you look at it, good, too good.
It looks too good to be true, so if it's true, that's bad, knowwhatimsayin'? ;)
When 4-string meaningless post gets 500$ what can be good in it?
That's a different problem.
But quite a problem. We will see the outcome in some weeks.
Could you please describe how you get .431?
$16,227.51 / $69.93 = .431%
$16,227.51 / $69.93= 232.05
Sure, I didn't show all my work there.
$69.93 is about .43% of $16227.51.
1% of $16227.51 = $162.27
1% of $162.27 = $1.62
$69.93 / $1.62 = 43.1
So, $69.93 is 43 times .01% of $16227 = .43%
Oh, now i get it. I'm doing it in a much more simple way. 69.93*100/16227,51=0.43%
That is indeed a simpler and better way.