Steem - What if we turned off the inflation?steemCreated with Sketch.

in #steem5 years ago (edited)

Well, not completely off, but just reduced it dramatically...

To the point where we got rid of the inflation content reward pool all together, basically turning off the inflation to steemit.com. The remaining inflation would go to pay SP holders, witnesses, and the SPS.

At this point I am not sure what a good overall inflation number would be, but perhaps something in the 1% range would be sufficient.

Something low enough to make the coin a lot more scarce than it is now, while being high enough to keep things running.

The reason I am proposing this is due to some thoughts I have been having for a while now as they relate to SMTs.

Why is it that basically every new app that builds on the steem blockchain will eventually use an SMT, but Steemit.com does not?

If steem is truly to be the base layer, we shouldn't have one app that is benefiting from the inflation while the others are not.

We should truly set steem up to be the base layer and all the other apps can build on top of it with their own tokens.

I am not sure what the best inflation numbers are at this point or the best split between the SP interest, Witnesses, and the SPS... but overall, going this route makes a lot of sense to me and something that I have been thinking about for a long time.

I was recently reminded of it by a comment on the newest Steemitblog post by @sepracore, which reads as follows:

"I have an idea I would like to hear feedback on from the community because I have not truely thought through all the pros and cons. We all want Steem to increase in value. I have heard the high inflation rate scares off many investors. This forms the basis for my idea below.

Once SMTs are released, I propose dropping the inflation of Steem to something reasonable. For the sake of argument, let’s just say 1-2%. There would be no steem reward pool. Inflation would go to current Steem holders, the SPS, and witnesses. People would still earn crypto by posting, it would now just be in the form of that communities SMT and their own reward pool.

Since RCs would still be needed, people will still need Steem to interact with the blockchain, creating buy pressure (finally). App creators could buy the Steem and delegate those RCs to their users. The apps could earn revenue from ads, etc. ... something like that. Or users with RCs could earn passive income through delegations. Maybe this is how Steemit Inc could keep their Steem and earn the necessary money to stay in business. Rent it out.

I do not have the details worked out obviously but to me something needs to be done about the price of steem. I know I am stating the obvious here. @aggroed wants more ways to burn steem. I say lets considered burning future Steem by reducing inflation. With SMTs, do we need to keep printing Steem at the rate we are. It seems unnecessary and a pain to police.

Going away from the current Steem reward pool also might solve another problem. Starting with a new SMT community would reset the playing field so to speak, decreasing the importance of the premined stake, etc. I know communities are already doing this. This would just be doing it for Steem specifically.

Thoughts on this brainstorm from my phone? I am sure there are major problems, but let’s stsrt the conversation from here."

(Source: https://steemit.com/smt/@steemitblog/part-3-of-our-plan-to-onboard-the-masses-smart-media-tokens#comments)

While not agreeing on everything in here, I do share a lot of his same thoughts on this.

I am not sure the problems with steemit and steem can be overcome by the coming changes in the HF, in fact I am pretty sure they cannot.

However, basically starting over with a separate coin for steemit and dramatically ratcheting down the inflation on steem may be just what the doctor ordered.

I am not sure whether going this route will create enough demand for steem prices to go higher, but we have basically seen over the past 16 months that the current inflation model likely isn't going to work, not to mention all the problems we have seen on Steemit.com over the past 3+ years with everyone trying to share the same reward pool.

Which means, exploring something along these lines makes a lot of sense to me.

Again, many details will need to be ironed out and worked out, but the basic premise is there.

What say you?

Stay informed my friends.

Image Source:

https://www.ccn.com/major-milestone-steem-blockchain-hits-1-million-accounts/

-Doc

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Why talk about it lets do it

I would support it.

sounds good to me
you and edicted have lots of good ideas for steem
if there were more like you guys this place would not be so chaotic with the dicks running this place lol'
have a great day JR

Wanna know my idea?

Let’s just remove the delegation function. That way every new app will be “forced” to buy steem if they truly want to reward their users instead of building their app and then earn free delegations either from Steemit or directly from the users.

Everyone is being benefited from delegations up until now and build their accounts...except steem itself....

Perhaps I should make a post about it and see how will people react to this idea

I see the pros of that as well. Though, there is something to be said about getting a business set up with a delegation and then removing it once they are up and running. Some businesses may not come if they aren't helped initially.

For steem to be delegated it needs to be held. So there is pressure to buy/hodl right there.

That and burn about 50 million Steem and you got something.

Sure, that could help as well. Though I am mostly talking about going forward.

Definitely an interesting proposal but I still think that the inflationary pressure is only a short term problem but also ultimately helps in accelerating the distribution and decentralization of the network. Given it is DPOS, as large stakeholders sell, they will slowly cede more inflation to smaller users which will be the force behind adoption and engagement which lead to value creation. Price unfortunately is not equal value and that is why it feels undervalued here despite the development.

Yes, those things are true... but... and this is a big butt... I still don't think it makes sense for steemit.com to enjoy the inflation while other apps do not, and I don't think the shared reward pool will ever really work...

You need to own more BEER (6 BEER allows you to send 1 BEER per day)

What you are saying is not turn off the inflation, it's for steemit Inc to stop selling? Correct? Nothing is being inflated by them selling, the STEEM already exist.

Edit: no, you are saying let's completely break steem. If anything we should get rid of the inflation to steem holders. I don't think this is a good idea.

Give people a reason to buy, and burn steem. Stop giving free steem to SP holders.

Yes I'm saying completely revamp how steemit.com is set up. Why is it that steemit.com, a supposedly "just another app" on top of steem, receives inflation from the steem protocol? No other app receives that same benefit. History has shown that shuffling the deck chairs around IE curation percentage changes, voting time changes, downvotes etc is all mostly the same... just shuffling deck chairs around on a sinking ship. The inflation level is way too high for the current demand, though that is likely another topic all together as perhaps a dynamic inflation model could work. Revamping the current setup to make steem truly a base layer with everything else built on top makes a lot of sense to me and then you just set the steem economics accordingly.

Not agreeing with everything?!? Haha.

I just feel like something big needs to change. I know we have HF21 coming but as many people pointed out that addresses issues with people already here. To get outsiders (which is the main problem) we need to do something else. And something more dramatic.

I agree completely with that. I do not think the HF is going to do nearly enough to get the desired changes here. When we have stake weighted voting, and the stake not distributed very well, combined with a shared reward pool for all content, it makes it awfully tough to do what it is intended to do...

Yeah. I don't see why we need any more Steem on the market right now. There's 100 million on exchanges! We should be buying them up, not minting more.

Yep, I agree. Steemit,Inc selling is a problem, but a bigger problem is just too much inflation for not enough demand.

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