I said this before when we were on steem, but here is the two sentence summary:
We do need to drastically reduce Hive inflation, but after or as SMTs are released. At the point SMTs are released, Hive would serve one and in my opinion only/main purpose, and that is access to use the Hive blockchain through RCs. At that point, we do not need nor probably want 7-8% inflation. We would want something much lower (3%?) to stabilize the chain and increase the value by greatly reducing supply. That 3% percent would pay out witnesses and those with powered up hive. SMTs would pay authors and curators, etc? Something like that.
Yes .... in general that would be the preferred scenario. Release SMT and cut/remove the reward pool for author/curators on the base token.
Although I would still want some HIVE distributed trough PoB, just for legacy :). Maybe some small share.
But at the moment, looks like we have enough funds in the dev fund, with no reason for inflation going there.
Having a conservative, “investor friendly” base token is key. We can then let the individual SMTs run wild and if they crash and burn then it is no harm no foul against the chain as a whole.