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RE: Steem for Noobs

in #steemhelp7 years ago

Thank you for the great posting. However, I am not still clear in some part. The following is what described in the white paper.

"Because Steem wants to encourage long-term growth, it is hardwired to allocate 9 STEEM to Steem Power (SP) stakeholders for every 1 STEEM it creates to fund growth through contribution incentives. Over time this drives the ratio of the total STEEM value of Steem Power balances to the total of STEEM balances toward 9:1 ."

I do not understand this paragraph (especially, "... every 1 STEEM it creates to fund growth through contribution incentives...") .

Does it mean that 90% of Steem inflation will be distributed to Steem Power holders? Then, Steem power holders will have a 90% increase of their Steem every year (until the year 3.32).

If it is true, how they can manager 9:1 ratio of the total Steem balance to the total Steem Power balance (in Steem)? Because they do not know the portion of received Steem (as a form interest coming from the 90% distribution) that Steem Power holders want to power up.