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RE: The Price of Steem Will Always Go Down... It's Supposed To : The Magic of Steem Power
@xeldal wrote:
By design, the total number of Steem will double in supply each year to pay for all of its utilities.
Naturally, there is a limit to this doubling; when every human on the planet is on Steemit.com, to give an exaggerated example. There will have to be a change in this doubling mechanism at some point. It can't go on doubling forever. Would you agree?
It won't matter how many users there are, but yes, eventually the numbers get unmanageable. Steem does what's called a reverse-split every 3-4 years to keep the numbers in a usable range. Basically just moving the decimal place on all balances.
No. Only the virtual supply doubles, and the vast majority is held within VESTS. It's only if VESTS start falling significantly below 90% of the virtual supply (and there's mechanisms to encourage it to return quickly up to 90%) that inflation actually becomes unmanageable.