RE: Steem: The Ultimate Compounding Machine

[markkujantunen]

That means that any STEEM that is "invested" in the network via powering up will grow at a percentage of the inflation rate.

No. 15% of the total inflation, which is 8.7% annually at this time, is given to SP holders. 15% of 8.7% is 1.3%, which is how much you directly benefit from powering up as opposed to keeping your STEEM in liquid form in a year. But much more importantly, only powered up STEEM allows one to vote on rewards.

Comments

[preparedwombat]

15% of the total inflation, which is 8.7% annually at this time, is given to SP holders. 15% of 8.7% is 1.3%, which is how much you directly benefit from powering up as opposed to keeping your STEEM in liquid form in a year.

This is not the correct calculation. 15% of the inflation rate seems correct, but it’s not. It’s a bit higher, and here’s why:
https://steemit.com/steempower/@preparedwombat/the-steem-power-you-earn-for-holding-steem-power

[markkujantunen]

Thanks for the clarification! When you take virtual supply into account, the percentage goes up from about 1.3% to about 1.95%.

[taskmaster4450]

That is exactly what I said. STEEM powered up will grow at a percentage of the inflation rate.

[mariusjuk]

8.7% or 1.3% annually?

[taskmaster4450]

The total inflation rate is about 8.7%. As was show in the above comment, the SP holders get paid 15% of that.