Quote from: bacchist on July 15, 2016, 04:16:04 AM

Quote from: magicalacademy on July 15, 2016, 03:06:48 AM

How do you know that the exchange rate will adjust accordingly ? It may not, markets don't always act rational, even more so when everyone are told that 9/10 of their wealth will be wiped out

The exchange rate of VESTs to SP is not determined by market forces. It is hard coded to change over time in order to dilute the supply of SP.

You can check the current rate at https://steemd.com/distribution

Currently it is

Code:

1M VESTS = 216.819 STEEM

Note that what is called SP is simply VEST balance denominated in STEEM equivalents.

There are mechanisms in that act as automatic stabilizers in the case of market volatility, by the way... We could eventually discuss those. They're very clever.

Why the need to dilute the supply of steem power if 9/10 of it are wiped out every 3 year?

Another question. Posts on the steem front page are being rewarded more $ than a week ago due to the steem price rise. It means that the mecanism in place rewards the same amount of steem per posts. This creates a situation where the more content is published the less rewards each posts will get. Wouldn't it be better to reward a certain amount of steem proportionally to the current steem price, so that the higher the price of steem goes the more post can be rewarded instead of the higher each post can get rewarded. Hopefully that make sense lol