How much Steem is created each day, regardless of how many people post? "STEEM Launch & Sale Information" says:
"... new STEEM is created at a rate of 400 STEEM per minute, but 90% of it is illiquid."
I take that to reference the 90% that is redistributed to existing Steem Power holders.
Creating 400 Steem per minute, with 60 minutes in an hour, and 24 hours in a day, means 576,000 Steem is created each day. Please correct me if this is wrong. I couldn't find the info from google anywhere else.
How much Steem is allocated to miners, witnesses and the reward pool?
10%. There is 5% to each the reward pool and the miners/witnesses (as I have come to understand it).
Even if no one was posting, curating or joining Steemit, there would still be the exact same amount of Steem created each day.
Does that sound right?
It doesn't sound sustainable to me. This is a long running issue I have with how Steemit functions, that I can't seem to resolve as it currently functions. I get that if peopel invest, it uses up the amount created each day. But that requires a certain continual amount of investment to satisfy the perpetual creation of Steem. Perhaps tying the amount of Steem created each day to something like the quantity of posts made the previous day, or in real time, I don't know... but something actually happening on the platform to reflect activity as a form of "GDP", not simply creating the same fixed amount each day. This would address a small part of the inflation issue.
The other 90% goes to all of us. Yes, all of us get a portion of that based on the amount of Steem Power we have already. The more Steem Power you already have, the more "dividends" you get from that 90% daily Steem creation. We could also reduce the amount redistributed as "dividends" to SP "shareholders" as away to tackle the inflation issue that was created into Steem/Steemit.
Example of a possible alternative (maybe you have a better one):
Instead of X Steem created each day, create 20% of X (or another amount). The former 10% for the reward pool is now 50%, and the other 50% would be for the redistribution. It would be a smaller redistribution for all current SP holders, but so what? Do you want inflation reduced by a large amount, or do you want to hold onto your daily inflated "dividends" that continually lose value through an unrealistic increase in money supply to eventually become worthless?
90% of the daily Steem that is created is allocated to all of us as an "interest" or "dividend" (coughinflationcough), simply to incentivize us to keep and hold Steem Power. This "interest" is not from a return on gains that the entity we invest it produces. This Steem/Steem Power is given to us constantly, because new Steem is constantly being created into existence.
Is that the only reason to have Steem Power? Interest or dividends as "shareholders"?
Why else hold Steem Power?
Maybe because you want to be part of how Steemit functions?
In order to curate others for them to get rewards, and in turn them to curate you for you to get rewards, we need to be upvoting posts with SP.
Isn't that reason enough? Maybe, maybe not. It is for me though.
When I joined, I didn't join at all because of any "interest" anywhere. I didn't even know about that. I joined for the content creation and rewarding of such content. It's a revolutionary platform. You need SP as the fuel to make it run.
I have Steem Power so that I have power to vote in the platform. Eventually, or in my dreams (lol), I may get enough SP that I give and get large rewards for curating. That's the goal for SP accumulation. There is no need for "dividends" or "interest", as far as I see it. I don't want SP for that reason.
That's why we need SP. At least the way it functions now, but maybe it's not needed in another way of functionality? I don't know... But there is this burning issue of inflation that needs to be addressed for Steemit to turn around. Or else it's just... print more money (Steem) until everything crashes? Stop the presses.
The coming advertising is certainly going to help contract the overall supply of Steem each day which will help with the price... but more needs to be done, at least that's how I see it. I'm looking at that 90% as not required, and can make Steemit that much more valuable for people who care to be involved and a part of the Steemit platform and community. I'm here, as many are, for the actual purpose of the platform: to create content, and upvote content.
I think the "dividend/interest/inflation" aspect is more an investor catch, which may be more detrimental to the success of the Steem currency than it is a benefit. Imagine what an 80-90% drop in the amount of currency created each day will do to the value of the currency? Seems like something we can do, no?
I am one person, who sees it this way. Maybe you see it better and I'm not seeing what matters or what's right.
What do you think? Please discuss.
@krnel
2016-11-04, 5:05pm
