RE: How to make Steem and Steemit great again!

Great Idea! I want to add few more points.

First of all, Steem's inflation should be deceased for rewarding the content creators. Current inflation is not keeping up with low demand. If Steem did not have relative high inflation, it would easily sit at top 30 in CMC.

Steem's Inflation should go to protocol developments, witness compensation and PoS interest (2-3% vs current 8.5%). Rewarding content creators should be done with SMTs. STINC can launch their own SMT and share profit from ads with celebrity creators by SMTs.

Steem Investors can earn TOKENs through RC/SP delegations. @steemhunt is already showing a good example. Creators and DApps will figure out optimum synergy with a token.

All the front-end DApps can try their own SMTs with different distribution technique. Finding a sweet algorithms to rewarding the best content is more than rocket science. A former founder, @dan thinks that he can fix it, I totally disagree.

DApps with SMTs can try different algos. @steemhunt, @actifit, @dlike and others are already experimenting. Steem's inflation and broken rewarding is helping its price.

Sort:

Trending

[-]

jrcornel 6 years ago

Some good ideas in there. Have you got any of these in front of Inc?

0.00 BPC

14 votes

vikisecrets 6 years ago

A lot of the inflation comes also from the Steem Dollar (SBD) pegging, which is not ideal especially in a bear market.

The inflation rate of steem includes SBD emission, no?

9 votes

Yes, SBD emission is included, but the problem is SBD is like debt which can increase or decrease depending on the market situation. If SBD and STEEM prices fall, converting SBD to STEEM can create additional inflation. This is what happened / happens during the past bear market.

Do you men if SBD falls below $1 but the total market cap is less than 10% of that of steem's? Or what market conditions are you talking about?

11 votes

yes, exactly, if SBD falls below $1, people can still convert their millions of SBD to Steem, which can increase the Steem inflation a lot. Exactly that happened during the bear market. Unfortunately there is no function to convert Steem back to SBD if SBD rises above $1.

Well, do that math. There is only 9 million sbd in existence, of which $9 million worth of steem is accounted for. Any excess steem that is created due to the spread between sbd and 1 dollar is minimal. Especially considering there are 320 million steem outstanding. I doubt that even increases the overall inflation rate by 1%.