But that means that every week 1% of the SP is liquid for selling. If no one is converting to SP, then eventually it will all become STEEM which is debased 100% per annum and the curation will be dominated by the few remaining with SP.
It also appears to be a constant selling pressure juxtaposed against any speculation demand for STEEM. Analogous to miners divest BTC.
I see your point that the amount of STEEM available is only 10% of marketcap right now. So that can be another factor for price moving up so much.
Dan planned out the math of this pyramid scheme well. It is a front loaded pump with a long-tail die off.
I'm not saying you don't know what you're talking about, but none of what you just said has any basis in reality.
9 SP are created for every 1 Steem created.Please do your homework before making outlandish claims about pyramid schemes.
Indeed on the bolded. Did you not read what I wrote:
Dan planned out the math of this pyramid scheme well. It is a front loaded pump with a long-tail die off.
You bolded the fact that disproves the premise of your post...
You don't understand my post. Just try to explain what you think was disproven, then I will explain your myopia. Apparently you lack math skills.
Just do the math and assume no one converts STEEM to SP. Only 3.875% per year of STEEM will be converted to SP. Multiplied by 9. It is less than 50%. Everyone is trying to cash out all their SP over the 2 year sliding window. Well perhaps I miscalculated because of the 2 year window is it closer to 0.3875*9*9.
But it still means you have 1% of the marketcap coming up for sale every week. 1% of the marketcap as float I think is reasonably high. The current daily volume is apparently in that approximate range.
And that doesn't change the point that you who ever is still holding SP is learning to game the voting to maximize their curator rewards. That appears to be a Tragedy of the Commons, because they all end up voting together like one mind in a monkey-see-monkey-copy groupthink.
You argue that people will be disinterested in their curator rewards and instead vote their conscience or the long-term benefit of the site. I would rather think they would not bother to vote then, which was my point to smooth that people will grow weary of curating if the payout is not significant for doing so.
My point about SP versus STEEM is about the pressure is on the sell side. That SP become a larger % of the marketcap via relative debasement, means also more of the marketcap is for weekly cashing out. You don't have a mix of people who invested willing for long-term. They are imprisoned for 2 years and forced to either game the curator rewards or just become passive and wait out their 104 weeks.
It don't see how the incentives are aligned to incentivize people to invest in it. It is all about extracting from it. There is no benefit to any long-term valuation investment.