Thus Steem needs to have something different as far as market economics goes to make it different from the 750 other cryptocurrenices already in existence.
Steem is already different in that it uses "mining reward" to pay for content, that's what makes it different and this won't change if inflation is reduced to 10% per year
So the 120 % annual interest is to keep your current account value current as the same worth in three years time
That's not interest. Interest is meant to grow your value not to keep it the same.
Steem should be powered up into SP since liquid Stm gets no interest payments..
SP does not offer you any interest payment, this is a common misconception. You actually lose value when holding SP .
Thus investors get nothing much, but users of the platform get small rewards (micro bonuses) regularly.
That's exactly my point , Investors are the one paying for rewards and they have no incentives to keep pouring money in.
If people want to sell their SP it takes 2 years (104 weeks) to power down. This stops huge masses of Liquid Steem flooding the marketplace.
Another way to stop the huge masses of liquid steem is to simply slow down the printing press . Also you don't need to stop the selling of steem if you have the buying on the other side ( the buying is not going to come with 300% inflation though)
I do not try and understand exactly how my car runs and functions, I know just enough to reverse out of the driveway, the same I do not completely understand how it all works. I just drive the platform as I wish and earn share holder rewards for free ! ! !
I can tell :)
I appreciate your lenghty response but you still havn't answered my question ? :)