Quote from: snowflake43 on October 24, 2016, 08:00:17 AM

They could make the system much more attractive to investors by simply stopping printing so many coins. If there was a real purpose for doing so I would understand but it seems they are shooting themselves in the foot with the insane inflation.

I think the real revelation of what Dan created is that most people are clueless in maths. There is no insane inflation if you hold SP and Steem inflation doesn't affect you. Except perhaps indirectly, by the perception of those clueless enough to think that price direction matters, when all that matters is My_Holdings X Price.

If My_Holdings go up 3-4 times and price goes down 2-3 times, I'm in the green.

According to coinmarketcap.com, in July 9th, price was 0.0006 and marketcap was 30mn. Right now price is ~half, at 0.0003, and marketcap 38mn.

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I want to say to Ned that the best way to make sure people are invested long term is if the design is sound and sustainable with the right incentives. Many others and I are wondering how the steem price will increase with such inflation.

But it is not necessary to increase. That's the thing. As I said in an earlier post, assuming price is stable, in a couple of years 1k USD worth of SP that I have right now, will be 2mn USD.

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AlexGR you seem to think that as long as you get compensated for the price decline it's all good but you fail to recognize the importance of the price of steem. The price of steem is directly linked to the capacity of steemit to pay new bloggers, if the price keeps decreasing due to the inflation ( as we ve seen in the last month or two) then investors gets a signal that this platform has less and less money to pay for bloggers, so you will be sure they won't buy the currency.

I don't "think" that's the way it is. It is pure maths.

If someone said to you, do you want 10 steem worth 1000$ each, or do you want 100,000 STEEM worth 1$ each, would you take the total of 10k or the total of 100k? Does the price matter if the price is 100 times lower? No.

The reward pool is based not only on the individual price of the token but also in the numbers issued of it. Essentially the reward pool is based on the marketcap, not the price of Steem. The reward pool for authors could be 1000 STEEM x 10$ for a 10k USD per day total.... oooor, or it could be 100,000 STEEM per day at a price of 0.1$. It'd be the exact same thing.

As for the price decline, I think all the "sentiment" is because the price spiked and then it got down. However, over the long-run, Steem is going well.

What's of actual importance to investors is the closed-loop economy, in other words the viability of the system to generate revenue instead of being a perpetual drain in their pocket.

The 10% system that you propose is good, not in actual terms, but in things affecting people perception. But then there's the lack of incentive to hold SP. The system may need a redesign in that aspect.