Quote from: iamnotback on November 15, 2016, 02:16:23 PM

Quote from: snowflake43 on November 15, 2016, 02:11:05 PM

Quote from: iamnotback on November 15, 2016, 01:57:11 PM

Quote from: snowflake43 on November 15, 2016, 12:05:55 PM

Part of the new issued coins are allocated to SP holders. This means that the less Steem is powered up the more coins are being allocated to existing SP holders. So the new changes ( more liquid steem) basically creates a new incentive to stay powered up because there would be less steem powered up. Please let me know if I am missing something but that's how I understand it.

Yes this is correct. When the percentage of SP is less than 90%, then there is an apprecation of share aggregating to the SP holders. This increases as the SP share decreases. I had covered this math in one of my blogs or comment posts on Steem. It is linked upthread some where in this thread.

The chart is here and the detailed math discussion is in the comments:

https://steemit.com/steem/@anonymint/who-pays-for-the-blogging-and-curation-rewards-part-2

Ok thanks for the answer. So if I am the only one powered up I will receive all the steem that was meant to be distributed to all SP holders correct? Just want to make sure

The math is a bit more complex. Suffice to say that the lower the ratio of SP to non-SP, then the more (than their "proportional" relative to total inflation) share of the inflation that the SP holders get. And all SP holders get a proportional share relative to other SP holders.

In other words, as that ratio declines from ~90%, the inflation is putting more of the market cap in your pocket if you are a SP holder. The lower the ratio, the faster your share of the market cap grows. Above ~90% ratio, as an SP holder you are being debased and losing share of the market cap.

Edit: this means if the whales don't power down, their share of the money supply will be growing until this new change to lower the power down to 3 months duration! So it means the whale concentration problem can get worse. It is going to be very interesting to see how they try to extract the project from the initial effects of the sneaky stealthmine ("premine").

Yeah Im curious to see especially what the steemit account will do.

snowflake43

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