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RE: Burned tokens, rewards, and inflation summary July 29, 2023: 212K SP, 142K STEEM, and 1,146 SBD burned in 65K burnsteem25 posts
To understand the difference between current supply and virtual supply, we need to remember that each Steem Dollar (SBD) can be converted to STEEM by the blockchain, with an assumed value of $1.
So, here's how I understand it,
- the current supply is the number of all STEEM in circulation (or powered up).
- the virtual supply is the current supply plus all the STEEM that would exist if every SBD gets converted to STEEM.
As long as SBDs are not being printed because the SBD market cap is higher than 10% of the STEEM market cap, the virtual_supply inflation rate and current_supply inflation rate will be identical. If/when we see the blockchain start printing SBDs again, the two numbers could be different, because the virtual_supply inflation rate will change with the price of STEEM, but the current_supply inflation rate will not.
You can find more about that in
- The Steem blockchain was deflationary over the last 4 weeks, which I wrote last year; or in
- Supply of Steem Decreasing! by @dan, one of the Steem blockchain founders.
- Take a look at the top-left graph in slide #4 of this report.
Thank you so much for taking time to explain about virtual and current inflation and things connected to it, you've added some reference links but your explanation is enough to make me understand but I checked them too.
Thank you once again sir for being so kind and make me understand such things that made me confused. I almost forgot about SBD.