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RE: STEEM REPORT SEPTEMBER, 4TH

in #steemit8 years ago

Here is the answer:
"Because Steem wants to encourage long-term growth, it is hardwired to allocate 9 STEEM to Steem Power (SP) stakeholders for every 1 STEEM it creates to fund growth through contribution incentives. Over time this drives the ratio of the total STEEM value of Steem Power balances to the total of STEEM balances toward 9:1 . "
https://steem.io/SteemWhitePaper.pdf

page 9/44

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Thanks to be so patient with me. I will read this part of the white paper and try to understand it. Thanks again

Ok, thanks for the info. So the ratio will be 9:1. So what it is now? Or does the interest rate simply going down because you have to split this to more users every day? Still not clear about this point....

100/1000 is bigger than 100/ 10000. As the system grows, the inflation % gets smaller.

Sorry to be such an ignorant, but i still dont get it a 100%. Here is the original text from the whitepaper:

...as the system grows, the inflation % gets smaller...

and how this explain that the interest rate goes lower and lower?

You can read more about the inflation from the same white paper starting page 35. Inflation % should be equal to interest rate.

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