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RE: Is Steem dying and HF21 is the death blow for Steem? HF21 can raise PAL's price against Steem!
This is a great post. I agree with most of these ideas. I'm not sure if it is currently time to drop the inflation down to 2/3% but maybe after SMTs get a year behind them it will be a great idea.
The real interest rate (inflation rate if you wish) of Steem is nearer 20% pa than 8.5%. This is because so much STEEM is not vested and not upvoting. If nobody is going to burn their coins then we need a huge increase in activity to bring the reward pool down and the interest rate coming down towards the coin-creation rate.
What I would suggest, given the glut of STEEM, is to accelerate the decrease in the inflation rate so that it levels out much sooner.
This makes sense. I always forget the impact of non-active stuff. It must cost the large exchanges a fortune to maintain the liquidity.