But if noone is mining doesn't that mean no more steem is being created? aka limited supply, high demand = price increase?
STEEM is not limited, it has a 9.5% yearly inflation rate that will descend with time. PoW was there for those who wanted to stay outside of the politics that a witness has to play to be successful (aka get the most votes). PoW could provide additional security if there are a lot of miners, but with mining monopoly it's just another 'witness'. We don't get any advantage maintaining it.
So how does an inflation rate descend? ( im clueless about economics)