Post
Topic
Board Altcoin Discussion
Re: Steemit how can this thing be workable long term?
by
albert11
on 14/07/2016, 02:22:24 UTC
SD or STEEM Dollars protect you from STEEM hyperinflation silly.

Not really. That is a gimmick in the design attempting to fool you.

The SP are debased at 10%, but the main tokens at 100%. But the problem is the SP may also fall in exchange value due to the 100% debasement of the main tokens.

Just wait until people have started to figure out how to game this system.

Indeed that was my point, SP is exchanged for steem at a 1:1 ratio so they both are inextricably linked.

Basically the creation of new coins to compensate SP holders for the 100% inflation contributes to even more inflation, effectively solving inflation by more inflation.