Thank you for attending the lecture in Steemit-Crypto-Academy & doing the homework task-7.

From 2021 to 2031 how many STEEM tokens are going to be minted(approx)

Refer to the table.

March-2021- 391.8 Millions
March- 2031- 685.0 Millions

Difference= 685-391.8= 293.2 Millions approx

What would be the implication of the reduction in inflation rate and subsequent Block rewards?

Please refer to this table. I have made this calculation on the basis of reducing inflation rate(0.01% every 250,000 blocks or in other words, 0.01% reduction at every 8.68 days). I have extracted the YoY figure for simplification.

We have already established that 293.2 Million will be the new supply of STEEM tokens on account of inflation from 2021 to 2031.

The average rate of new STEEM being minted per year in the first 10 years= 29.3 Million per year

March- 2036- 774.02 Millions

The average rate per year(from 2031-2036)= 17.8 Million.

The average rate from 2037 is further going to reduce to 8.64 Million

Implication:-

• The current reward pool size is 29.3 Million per year with a total virtual supply of 391 Million.

• 2021- SP to exercise is less(as the virtual supply is only 391 Million), and the reward pool is more- 29.3 Million per year

• 2031- SP to exercise will be more (because the virtual supply will be more- 685 Million), and the reward pool will be less- 17.8 Million

Let's say the upvote value now is X, [Reward Pool per year= 29.3 Million, Virtual Supply=391 Million)

In 2032, the size of the Reward Pool will be 17.8 Million and the virtual supply will be 685 Million.

So the Upvote value will be X (17.8/29.3)= 0.6 X. So on account of inflation rate only it will be reduced by 40%, if we further consider the virtual supply it will be even lower than this value. Because with a virtual supply of 685 Million, the SP in effect will be more than what it is now(with a supply of 391 Million).

It is further going to reduce from 2037 onwards.

Put simply, those who build their SP over the next 10 years will rule this Blockchain. They are the potential whales, orcas, they can influence the governance, they can earn better privilege on the premise of influence power.

I carefully follow the professor hint by the link [https://steemscan.com/account/fombae]

Your recovery account is @steem. Click on Steemit Inc, you will find that it is @steem, your recovery account. Steemit Inc is the owner of that account(@steem).

I had never tried, neither did I even want to because I was scared since I had to use my master key.

You are right. We should avoid frequent use of Master Key and if it is a requirement then only you should send a private message(not for fun).

Note- Ideally, it should be the Memo Key to encrypt or decrypt the message. But at the moment it is not fully implemented yet. So for the time being, you can send an encrypted message using the Master Password and decrypt it using Memo Key/Master Password.

Thank you.

Homework Task -7 successfully accomplished.
[4]