Smooth, I am addressing this question at you since you are a witness and seem to be knowledgable about steemit.
Why is 300% - 100% yearly inflation necessary when the actual inflation needed to reward content and miners is about 10% per year?
I wrote a post about this here https://steemit.com/steemit/@snowflake/5a2p2k-why-not-inflate-steem-by-only-10-or-whatever-reward-pool-is-instead-of-having-this-crazy-printing-going-on
If anyone else has an answer I'm all ears and yes I have already read the whitepaper.
Why is 300% - 100% yearly inflation necessary when the actual inflation needed to reward content and miners is about 10% per year?
I wrote a post about this here https://steemit.com/steemit/@snowflake/5a2p2k-why-not-inflate-steem-by-only-10-or-whatever-reward-pool-is-instead-of-having-this-crazy-printing-going-on
If anyone else has an answer I'm all ears and yes I have already read the whitepaper.
The main reason is probably to incentivize locking up coins in SP, which is is needed for a variety of security reasons including reputation but even double voting (if you can instantly move your coins from one account to another you can vote again with the second account).
If you do lock up your coins you don't suffer from the crazy inflation, so as I commented to iamnotback above, you can't really count both as disadvantages. Pick one or the other.
A much shorter luckup period would probably still solve most of the problems. I didn't design the thing
