Reduce Steem’s Inflation Rate?
Earlier today, @theycallmedan did a post, as did @tarazkp (here) about the possibility that Steem’s inflation rate would be significantly lowered with Steem still going to witnesses and hodlers of Steem Power (and, I’m assuming, perhaps the Steem DAO) but that authors and curators would instead receive their payouts as Smart Media Tokens. I think it’s fair to say that Dan was at least somewhat opposed to the idea and Taraz was leaning towards being okay with the idea (edited: at some point in the future, see his comment below). My apologies to both if I’m misstating their thoughts. I’m tentatively neutral-ish and don’t yet have a strong opinion either way.
I remember seeing a few comments about this idea last fall. It also came up at SteemFest4 when during one of the panels someone asked @vandeberg about the possibility of it happening. As I remember it, he thought that the change would be fairly easy from a technical viewpoint.
Having STEEM being strictly a utility token would be a huge change from the current system where it’s both the fuel that runs the Steem blockchain and the token that authors and curators are paid in. As it stands, if authors and curators sell their STEEM to convert it to fiat or another crypto, much of the price/value of that STEEM is a function of its use as the fuel that runs the Steem blockchain. But if a “SteemSMT” was distributed to authors and curators, what would that token’s price/value be a function of?
If we look at existing Steem-Engine tokens (granted, not quite the same as SMT’s), there are a few that have viable use-cases to bolster their price/value. DEC and ENG for instance. But many/most S-E tokens have prices/values that are essentially speculation-based. Would a “SteemSMT” have use-cases for a price discovery mechanism? This seems very unclear to me at the moment. But it’s possible that at some point after the Hard Fork introducing Smart Media tokens, various use-cases would emerge.
If Smart Media Tokens were used for rewarding authors/curators instead of STEEM, it might have the effect of encouraging STEEM hodlers to think of themselves more clearly as investors and the reduced flow of new STEEM could make the existing STEEM quite valuable given its status as a utility token, assuming that use of the Steem blockchain increases significantly in coming years.
Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than they appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.
Post beneficiaries:
5% - @hockney
5% - @steem.dao
5% - @steemchiller
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If smteees! is gonna replace steem as the desired payment for blogging, it will happen on its own.
Personally, I don't see it happening.
Rc's are so plentiful that steem would go to near zero if its only purpose was rc's, imo.
But, with half a billion users, who knows.
They can also impliment new features that are more RC intensive. Start by reducing inflation or drastically increasing the RC prices of everything.
And fracture what little community we have managed to build, even more?
Let the smteees! compete on their own.
If they outshine steem, ok.
But to smash steem before the smteees! are even a thing, seems premature, to me.
Nobody uses steem, what makes you think anybody is going to use a subset of steem?
More infrastructure just sits unused, unless we can get some users hooked.
Rewards was supposed to do that, but the idiots that could reap as much btc value as possible, did.
Now we got two hills to climb.
The learning curve makes three.
And at the top of the list we want to talk about eliminating the one thing that does continue to bring people in over the hills?
Smdh.
I completely argree with you. It is not the time to mess with the set equation. However, in the future it may be more appropriate
But at that point will it be possible? Steem will be at the mercy of giant SmTs, etc. If upset, they will bid Steem adieu.
And good riddance to them, imo.
Maybe i will be one of those steexiting.
If the smteee! is paying better, why not?
It's not like the steeminati now are trying to build loyalty in the average user, too busy trying to scheme as much btc for themselves as they can, iyam.
I don't quite follow the logic either. Economies work by the spooky interactions of their feedback loops. They don't exactly hit a pareto optimal but they do mill about a pareto optimal and will lurch towards another when conditions shock it out. I'll have to dig into this further.
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Yeah give out a worthless utility token while the upper echelon still get steem.....that ought to work (eyeroll)..../s
I am opposed to it at the moment, but think eventually SMTs will naturally shift it, especially when the inflation rate drops significantly over time, maybe 7 or 8 years from now :)
I don't really like the tweaking of inflation that much as it as sounds too "banky"
As SMTs gain value, more authors will chase SMTs with their content instead of STEEM and the whole thing will happen organically. As that becomes obvious, and STEEM dominance approaches 50% we can revisit scaling down the inflation rate, I think doing so early puts the cart before the horse and puts too much pressure on SMTs.
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