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RE: Steemit: Where Does the Money Come From?
I have a question. Is the chain adding coins to the circulation every time someone receives a payout? Is there an unlimited number of coins that can be introduced to the market?
the created amount of token is fixed.
9.5% annual interest rate of steem
Okay so there is more introduced at a rate of 9.5%. I really appreciate your response. I worried that by introducing steem it would make its value drop. But after thinking about it more as the interest grows in steem as well and this will balance out hopefully as steem becomes main stream.
Thank you for your response @joshbreslauer - I did not know what the current interest rate was.
Great questions @nicnas.
feel free to also upvote on comments in your posts if you like them ;)
you could support @nicnas for good questions !
Noted. ;)
YES PLEASE.Much appreciated. I think that this is a great discussion. Where steem is heading is important if you are going to dedicate your self.
Don't forget that the steem that is in one's wallet before the new steam is created is weighted heavier than the new steem. This is why we are the master race of steem... or it is a pump and dump.
If you ask any conservative person with money about the inflation rate. They will all tell you roughly 5% is right/ they have confidence in the currency at that rate. Also from what I've read on other posts the inflation rate percentage of Steemit will decrease each year.
there is no right amount of inflation !
steem inflation will not change by fixed pattern in the near future.
this system needs inflation to run !
and it seems to be fairly balanced for now.
Changes for these basic mechanisms can be made through hard forks, this already happend in the past.
but don't worry about the supply, this is where the magic happens.
(e.g. btc had 8%+ interest rate before 2016)
inflation is good if it also enables distribution.
I must have read that wrong then, regarding steemit inflation. Also I agree with you that there is no "right" inflation rate. Any rate that keeps confidence in the currency is a good inflation rate, the perfect rate would keep confidence while expanding the currency as the population expands!