Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Altcoin Discussion
Re: Steemit how can this thing be workable long term?
by
bacchist
on 15/07/2016, 02:10:39 UTC
Quote from: bacchist on July 15, 2016, 02:06:03 AM
Quote from: magicalacademy on July 15, 2016, 01:58:51 AM
Quote from: bacchist on July 15, 2016, 01:45:17 AM
Quote from: magicalacademy on July 15, 2016, 01:37:19 AM
If 1/10 of the supply is being wiped every 3 years then we have a problem cuz SP tokens will only be backed by 0.1 steem.

This seems like a misreading of some aspect of the economics involved. What are you basing this off of?

Whitepaper says : In order to compensate for the ever increasing precision, the STEEM network performs a 10:1 “reverse split” every 32,000,000 blocks (about 3 years).


When they reached about 5b coins which is about 32 000 000 blocks the split will occur. After that SP tokens will be backed by 0.1 steem since 1/10 have been wiped.

The VEST to STEEM conversion rate will adjust, and the amount of SP will reflect that...

The whitepaper says that "prices will multiply by ten." This means that it will take ten times the VESTs to purchase a unit of STEEM... Since SP is denominated in STEEM, but is a representation of the VEST balance, the amount of SP that people see will decrease accordingly.