Baseline supply information at the beginning of proposal #117 [burnsteem100]

Yesterday was the beginning of proposal #117, so I thought today would be a good day to record some baseline information that we can compare against as time goes on. This proposal is scheduled to last for 6 months, so I'm not going to post updates weekly like I did during proposal #116, but you can always visit here for daily updates on supply information. Maybe I'll post snapshots every 4-6 weeks.

To recap: The community has collaborated to set-up a six month process where 10,000 SBDs per day will be distributed from the Steem Proposal System and burned. Some portion of the SBDs will be exchanged for STEEM on internal markets and burned. The remainder will be burned as SBDs. The exact distribution of each will be adjusted according to market conditions.

The reason for the split is that burning SBDs has no effect on the STEEM virtual supply (when the price of STEEM is below the haircut price), but burning STEEM does. This means that inflation can only be reduced by burning STEEM. The two actions have opposite effects on the haircut price, however. Burning SBDs lowers the haircut threshold and burning STEEM raises it.

The proposal ends on June 26.

Now on to the numbers & visuals.

Overall Supply Information

The changes in supply values might not be big enough to observe well at this scale, so we have a new graph.

Observed vs. expected Inflation

And here are some of the raw numbers, from a little after midnight (US/Eastern)

Other numbers (just collected now):

• Current haircut price: $0.13589
• SBD value (in STEEM): 7.359
• Median STEEM Price from witness feed: $0.0645
• Expected New STEEM per Day: 92,884

Observations

Already on day 1, we can see that the daily inflation was reduced by about 20% and the virtual supply is about 16K STEEM smaller than expected without the burn activity. At present, 316 SBDs are being burned each hour and 100 are being converted to STEEM and burned (~730 STEEM per hour).

Earlier this week, I did some "back of the envelope" math to estimate potential haircut price changes. According to those calculations, and assuming no mistakes, the highest that this burn activity could drive the haircut price would be about $0.14 (not accounting for future inflation), so my current opinion is that our current burn strategy should be to burn as much STEEM as market liquidity will support and simply monitor the haircut price.