It is often said that a coin with an inflationary model is not sustainable, but we know from countless
real-world examples that the quantity of money does not have a direct and immediate impact on its value,
although it certainly plays a role.
From August 2008 through January 2009 the US money supply14 grew from $871B to $1,737B, a rate of over 100% per year, and then continued to grow at about 20% per year for the next six years. All told, the money supply in the US has grown by 4.59x over less than seven years. During that same time, the value of the dollar relative to goods and services has fallen less than 10%, according to the government’s price index.15 This real-world example demonstrates that supply is only one component of price.
For the first two years of Bitcoin’s life the network sustained an annual inflation rate16 of over 100%. For the first five years it was over 30%, and for the first eight years it was over 10%. All told, the total “spending” Steem requires to fund content, curation, and block production amounts to less than 10% inflation.
The price of a digital commodity like STEEM is driven by both supply and demand. When a long-term holder decides to exit, the supply of STEEM on the market will increase and push the price down. This downward pressure is countered when a new long-term holder decides to buy up the STEEM and convert it back into SP. Additional supply and demand may be added due to the purchases and sales of liquid STEEM by market speculators, based on their predictions of the future market price.
The whitepaper is a plain brilliant description about how Steem is trying to improve in lot of fields. Reddit is so 1.0 and Steem is so 3.0. I'm not trying to make spam here, but many of you might be lazy as me:
Contribution Rewards:
• Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater.
• POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round).
• POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per
round) or 0.750% per year, whichever is greater.
• Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year,
whichever is greater.
Power Rewards:
• Steem Power rewards: For each STEEM created by the above rewards, 9 STEEM are divided among all Steem Power holders.
Have you read the whitepaper?
The whitepaper is a plain brilliant description about how Steem is trying to improve in lot of fields. Reddit is so 1.0 and Steem is so 3.0. I'm not trying to make spam here, but many of you might be lazy as me:
Contribution Rewards:
• Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater.
• POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round).
• POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per
round) or 0.750% per year, whichever is greater.
• Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year,
whichever is greater.
Power Rewards:
• Steem Power rewards: For each STEEM created by the above rewards, 9 STEEM are divided among all Steem Power holders.
I read the whitepaper but is hard to understand all the calculation involved in the demand and supply.