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RE: The Real Inflation Rate Of Steem - Bluepaper Clarifications (Spoiler: It's Better Than I Thought)
Thanks for the good news! I really like the concept of slowly declining inflation rate. But you also have to consider that when the inflation rate sinks, you will get less and less for your SP. When your upvote is now worth 1$ and you don't change your SP for 20 years, the following things will happen:
- The interest for all of the years combined will be 150%
- The reward pool will be 1/10th of what it is now
If you add it all up, your upvote will only be worth 0.04$. Quite a difference, right?
Correct, but incomplete. The reward pool is now about 43000 STEEM/day, in 20 years it will be around 4300 STEEM/day.
Today 1 STEEM is (roughly) $1.5, so the entire reward pool is worth $64.500. But in 20 years, the price of STEEM can be 10x the price of today (in a very conservative prediction) so the future value of the reward pool will be worth 4300 * $15 = $64.500.
The reward pool decreases in STEEM, not in the market value of STEEM, which is something completely different. The same goes for SP.
Yes, you are correct. STEEM could rise a lot. But inflation is usually calculated under the assumption that market prices don't change.