I'm gonna assume this guy has to pay child support the rest of his life. Looks painful!
I would like to understand how the Steemit system works. Is the amount of coins set in the future, or does it get massed produced like the digital dollar?
How much you gonna buy?
Thanks for the discussion thread.. very enlightening and hint hint a summary would make a great post!
I really should try to contribute more productively
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I think this discussion was a great start.. :D
@surfbanker - I'm assuming you mean STEEM? Steemit is just a front-end interface for the blockchain and is a popular (but outdated) social media dapp reading the transactions of the chain. Steem has a set inflation rate that is degrading over time (i think we are at ~9% or so currently). This rate will degrade down 0.5% per year and eventually wind that inflation rate down to 1% and then will remain set at that in the future. When you are voting with your steem power you are determining who gets part of that inflation relative to your staked steem (read steem power). Block producers (aka witnesses), Content creators, content curators, and etc all get certain amounts of that inflation pool. To see how the inflation is divided up, go to: https://steemdb.com
I'm not sure how much I'll buy, but I just topped this account off up to 500 steem power and got more circulating around in others.
Sounds confusing. Basically, there is no maximum steem coins set, but the amount of coins created per year will decrease, until it hits a certain benchmark. Then, it will create a certain ratio per year. I would like to see a chart to break down real numbers, to get a better understanding of the math.
I like the Steemit website, but think it needs a little bit of reorganization. The Steem currency seems like there is a lot of room for manipulation, but that is just an impression I get. I'm no expert on the steem system by any means.
@surfbanker - the problem of thinking of "no maximum" is that one has to remember relativity. When contrasted to the inflation rate of the US dollar, an eventual 1% inflation rate will be increasing double digit returns relative to US dollars in the mid-term future. Consider this really old article for visualizing the inflation: https://steemit.com/steem-inflation/@fyrstikken/what-is-the-inflation-rate-of-steem-here-is-the-supply-table-for-the-next-20-years
Also consider that there are ways to destroy coin supply. (For example, promoting articles sends fees collected a null account to be destroyed)
Yet all this aside, consider say 20 years from now. Even at that point in time there will only be roughly 600 million to 700 million STEEM in existence... less than 1 coin available for every 10 people on Earth today (and recall world population is expected to grow several billion by then)
Thanks for the table, that was really helpful. Since there is such a large available pool of coins and a huge amount of new coins created for the first 10 years or so, it will be really hard to get the price up, not unless the demand is greatly increased. That is tough sledding if you ask me, but maybe it makes sense to others.
I didn't understand that last bit, "Promoting articles sends fees collected a full account to be destroyed". Can you rephrase that?
Thanks for answering my questions!
First off, recall that just holding steem power continues to give you part of that inflation even without doing a thing (you will notice your steem power balance continue to increase over time even if you dont write anything). So regardless you are gaining on the supply side just for being staked. Obviously theres more ways to gain via the supply side (ex. Writing articles, leasing steem power, selling to bid bots, playing games, etc. Etc.). Just by delegsting to bidbots alone, I'm experiencing over 20% ROI in raw steem amounts, which is far greater than steem itself is inflating.
As for the demand side of the equation, STEEM use is relative to adoption. And use cases continue to increase - most notably this year with many dapps launching (and a lot more to come). The new token market is somewhat here (ie. Steem-engine) already and these tokens lock steem into the ecosystem. Demand will continue to grow as long as development continues. And steem is seeing robust growth on the development side. The real issue for demand is actually the fact that pple visualize steem as a get rich quick scheme and sell off anything they get. This is exacerbated by the fact we have some of the largest amounts of pple from developing countries that actually rely on their blogging to provide income. That's fine and fair. But eventually they're losing out by selling off their future gains for a shrinking stake in the ecosystem.
As for the promoted article section, paying to promote ur articlen via steemit sends the fees you pay to a null account that destroys the steem paid. It's not much, but there are other initiatives to destroy supply. This was just an example.
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That is awesome. Very well detailed. I feel like I have a basic understanding of the system. So, when you promote your own writings, it doesn't actually take away from your stack, just kills your growth or return? Your hoping that the message or earnings from the post is greater than your unrealized gain of interest. It's a whole new world. Information technology.
I'm not quite sure I get what you stated here. When you promote an article on the promoted section of steemit you do use your funds. And those funds are destroyed via the null account, thereby taken out of supply. But forget this for a second because article promotion via steemit isnt a very big part of this blockchain.
Let's step and consider what's going on. Steem is just a stake weighted blockchain. Writing articles is just one way to earn in hopes that others use their influence (read influence derived from staked steem in the form of steem power). So when you write articles, you are hoping that others upvote you (use their influence and say you deserve more of the future inflation).
But steem is just a blockchain. As more dapps grow, more functionality outside of article writing is becoming available. For instance, take drug wars. By sharing a fight in the game on the chain, a robot upvotes your post. Take Steem Monsters, by playing games you get cards which have steem value on the internal market. Consider magic dice, where betting in a dice game one also gains tokens that offer dividends as you slowly become the house the more you play.
The point is steem is just a blockchain, and people tend to think it's only about post writing. It's not. It's a versatile stake-weighted blockchain that is growing and whose real world value is growing as more and more ways to bring in external funds continue to be onboarded.
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