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RE: Where Does The Money Come From (Value and Rewards Pool)?
See I'd love to understand how it works because I'm participating in it, and I'd like to know what I can expect from it in the future.
For example what is the assumption/theory that the price of steem will increase over time based on IF more and more steem will be generated at the same time? It seems like logical fallacy to me. I can't wrap my head around it.
On a practical level, I'm also just saying, all right, let's just enjoy the ride and see what happens... but it is irritating that it's so hard to grasp and predict its behavior.
I'm actually glad you enjoy understanding these things. I see a lot of people just doing their thing on Steemit without fully understanding it.. and that's fine. But seeing as we're given all the details is inspires me to learn more about the inner workings. And unfortunately I don't have the answer to your question about the logic they're using or what exact formula they're following to predict at what rate the inflation should decrease. But what's good is that if something were to happen, and their calculations were wrong, they could correct it with a change to the blockchain in the future.
It’s funny once we understand how money is actually created. Before blockchain, we could just watch the central banks print it, now we’re doing it ourselves essentially. I wonder whether eventually there will be a future with no money, kinda like Startrek :)