You are viewing a single comment's thread from:
RE: Why I Am So Optimistic About The STEEM Blockchain
How can you explain the diluting action(the dilution of coin) done by steem blockchain
How can you explain the diluting action(the dilution of coin) done by steem blockchain
So every currency has an inflation. When they print more US dollars, where does it go? To the bankers! To the richest bankers so that they can loan it out and make/create even more money.
On steem, most of this inflation rate is distributed, through the reward pool, by consensus. This is a revolutionary new system where we choose where to distribute the inflation rate dynamically.
Let that sink in! This changes everything, and is one of my favorite parts of steem, the revolutionary currency that also happens to be a technological powerhouse.
Not ever to be a naysayer, but since reward pool distribution is stake-weighted, it is still going to the richest to distribute as they see fit... Hopefully the current richest will see fit to distribute it more broadly so that it becomes a more equal potential distribution. We'll see! I'm certainly not naysaying the potential.
Posted using Partiko Android
You are absolutely correct here. But this still beats the current system by orders of magnitude. First, they do not lend it (to us) into creation, they are strictly using stake for a consensus based distribution. And second, the richest can only distrubute based on their stake.
Now, this is a little different from what you said, and again, revolutionary.
Currently, those with the most power distrubute 100%. Because they have the most power, and they defend those rights with laws and armies and treaties and spaceships. On steem, every single user, down to 1 sp, gets to voice their vote and have an actual say about how that small percentage of the reward pool gets distributed. It is not just up to the richest, every SP counts. Unlike in some other voting systems we may know about ;p
Yes, better. Though not revolutionary, I'd say, unfortunately, but better within the confines of digital capitalism.
Also, because of the dust rule, tiny sp holders don't get as much freedom of choice if they want their vote to count for anything.
Posted using Partiko Android
Good point on the dust rule. That is an aspect that was new to me, and is now changing with the next HardFork, if it goes through. There will now be a threshhold for the vote to count for anything (I am unclear if that will be at 5 SP x 100 VP or another number) above which 100% will pay out and below which it will be a zero value vote.
And won't count against voting power? Also, will it still count on a larger value post?
I am not sure about voting power, but I'm not sure what use voting power (which seems like they are renaming to voting mana) is for a zero value vote.
My understanding of the HF20 post was that it will have zero value until you get a certain amount of steem. So it will be a 'smoother' experience, letting you vote like on facebook when you are under the threshold, and thus only users with more SP will think about value and voting 'mana' and whatnot. Not sure what the cut off is, I think its pretty low (~5sp x 100%) but need to confirm.
I see. I guess it matters if, for example, someone with 5sp votes once and it counts, but then their second vote (5sp at ~98%) doesn't count... if it uses VP, then they'd have to wait longer to have a vote that actually counts.
I couldnt agree more.
Under the present system, inflation goes to the banks and is issued out to the public as debt.
On STEEM the inflation goes in the hands of the public from the get go.
the one problem I see, is that central banks print more money in times when the general inflation is low and they stop printing money (increase interest rates) when the price inflation is high. With STEEM, we have huge price inflation (steem currency weakening) and the system is still printing money, while a reasonable system would instead burn money at such time.
Well, I do have a couple of thoughts. First, inflation is set to lower every year. Now, the crypto markets move so fast that you might think that yearly is not enough. The thing is you can't mess with inflation on any faster basis, since that is the reward pool, so...burning.
There is a lot of burning! Promoting your post requires sending payment to @null, who burns the payment! But very few use that....
Currently the HF20 has some new burning invoked! Each new account will have their account creation fee (.1 steem) burnt! They will still get bandwidth credit for it, but they will burn steem for every new account created. This is very exciting, especially because of what you said! This is a very strong sign for the price in the future, as long as we can continue to onboard new users, which should get much easier with HF20.
What do you think?
I am not sure what you mean
Do you mean the inflation with the creation of Steem? (About 8 percent per annum, I think, and slowly decreasing.) Or is there a dilution effect with the new applications developers create?
No, the new apps are filling in slack now, and as we get more and more the whole system will expand with rising prices (to the benefit of everyone) to fit any number of projects. I expand a bit on this in my answer to your other comment.
I believe he was referring to the inflation rate, and I share my thoughts in a direct answer to his comment.