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RE: Fixing a Problem in the Economics of Steemit
Because it would represent a reduction in economic rationale for holding SP, if the 15% was reallocated, I would like to see it allocated 100% into curation rewards. There has been enough erosion of reasons to hold SP already.
I personally would like to see a split between either development/advertisers and author rewards OR as you suggested, reallocating at least some of it towards curation. Curation is a great incentive to get people to hold SP, provided curation rewards are meaningful enough.
Anything less than 100% going back to earning potential for SP is erosion.
Yes, while I believe an ongoing development fund is crucial, I'd still prefer it going entirely to rewards pool or even reducing the inflation rate by 15% (effectively increasing witness and rewards by ~15%).
Honestly anything would be better than it going to pay 1.5%pa interest, the psychological incentive of receiving a yearly interest that's on par with a quarter of the daily price volatility is next to nothing. And I'd be surprised if a financial price volatility formula wouldn't agree here
Here's what I'd really want to see, if the 15% SP inflation went to the reward pool: 50/50 post/curation rewards, keeping the reverse auction. This would increase earning potential on SP and balance it again. The 75/25 post reward/curation split combined with the reverse auction has significantly reduced curation rewards and has been an erosion of the value of SP.