Since the amount of VESTS is now more than 90% of STEEM, does this mean you will not get back as much steem if you buy VESTS as you would have if you just kept them?
As far as I can see, it is not 90% yet. More like 86-87% at the moment if I understand this stuff correctly.
You are correct. It will not go above 90% unless people with STEEM explicitly convert to VESTS. Absent any transactions the amount of STEEM held in VESTS will always move TOWARD 90%
I have a couple of questions.
Here's what I understand.
"virtual_supply": "5522844.000 STEEM",
"current_supply": "5522844.000 STEEM",
"confidential_supply": "0.000 STEEM",
"current_sbd_supply": "0.000 SBD",
"confidential_sbd_supply": "0.000 SBD",
"total_vesting_fund_steem": "4826044.000 STEEM",
"total_vesting_shares": "389357.483375 VESTS",
"total_reward_fund_steem": "638980.000 STEEM"
Here the STEEM in the vesting fund (
total_vesting_shares) is 4826044.000 STEEM, and the total supply (
current_supply) is 5522844.000 STEEM
This ratio is 0.874, or 87.4%. It will gradually drift to 90% if no one buys new shares.
First Questions: How is this drift calculated? What is the formula for the update cycle?As new STEEM is added to the money supply, the amount of STEEM in the vesting fund will increase accordingly.
Second Question: How do you calculate the value of your vests in terms of STEEM?My guess:
If you want to see what your vests are worth, valued in STEEM at, you calculate:
total_vesting_fund_steem * your_vesting_shares / total_vesting_shares(I fixed this formula in edit.)I have some other questions.
(1) How many witnesses can each vest vote for?(2) Is it impossible for someone to dilute your vests? I think not because
total_vesting_shares will never grow faster than
current_supply. Correct?
This is how much STEEM you would have if your could instantly convert your VESTS back to STEEM. It will only ever increase.
yoursteem = total_vesting_fund_steem * your_vesting_shares / total_vesting_sharesThis is how you calculate the percent of STEEM held by the VESTING account:
total_vesting_fund_steem / current_supply == 87.3%
This is how you calculate the liquid STEEM held in user accounts:
current_supply - total_reward_fund_steem - total_vesting_fund_steem
5522844 - 4826044 - 638980 = 57,820 = 1%
On July 4th, 2016 the total_reward_fund_steem will be converted into SBD and VESTS and distributed to user accounts.
The conclusion we can draw from this is that the amount of STEEM that is able to hit exchanges any time soon very small.
The easiest way to visualize how the blockchain maintains equilibrium between liquid STEEM and VESTS is to imagine two glasses of water with a constant flow of new water into each glass in a 9:1 ratio. If you let the water run for long enough it will re-balance the ratio of water in two glasses to about 9:1 regardless of the initial ratio.
How long it takes to balance depends upon the initial quantity of water, the initial ratio, and the rate of flow.
If you start out with a 1M : 9M ratio and add water in at a rate of 9:1 per second then after 11.5 days you will reach a 10M : 10M ratio. After another 11.5 days you will reach a 19M : 11M ratio.
The long-term rate of flow is to grow the supply by 113% per year. Most of this will flow to VESTS which means that most of the "inflation" is more of a stock-split than true inflation. This means that 90% of all inflation does not reallocate wealth. Which leaves us with a mere 10% of inflation resulting in redistribution of ownership.