Crypto Academy Week 7 - Homework Post for [sapwood]-Steemit inflation Mechanism and Account Mangement.

Introduction

Inflation Rate

As most of the STEEM tokens will be minted in the next 10 years or so(on account of inflation), how important it is for you to build your SP in the next 10 years and build significant influence power in the form of SP? How difficult will it be to earn STEEM rewards after 2031?

Building my SP in the next 10 years is very crucial considering the drastic reduction in block rewards and inflation saturation in the Next Decade. We will base our analysis and conclusion on using the table below.

image source

Before we get to this, I would like to draw a comparison between what happens on steemit(Block Reward Reduction) and Bitcoin Halving.

Year	Time Period	Bitcoin Halving
May 2020	210,000 blocks(4yrs)	12.5BTC to 6.25BTC
May 2024	210,000 blocks(4yrs)	6.25BTC to 3.125BTC
May 2028	210,000 blocks(4yrs)	3.125BTC to 1.5625BTC
May 2032	210,000 blocks(4yrs)	1.5625BTC to 0.78125BTC

From the table, it's evident that the block reward is halved every 4 years, just like the reduction in the steem block reward from a high of 2.962steem per block in march 2024 to a low of 2.276steem per block in 2031.

What does this mean, Just like bitcoin miners had to have their block reward halved in two every 4 years and earn less while performing the same task. The steem block rewards will also be reduced by the factor governing its supply and inflation, meaning that steemians will earn fewer steem rewards per block solved and by 2037 the amount of steem reward will have reduced significantly to 0.708 steem creating a reduction in the overall supply followed by scarcity.

So building my SP now is very important and strategic because of the ease of accumulating steem rewards now when compared to the next 10 years. It's easier and Steemains generate more steem rewards when compared to 2031 and 2037. Steemains who build their SP now will definitely become whales following the course of the next decade.

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

Year	Steem per Bock	Blocks per year	Total steem per year
2021	2.866	10,512,000	30,127,392
2022	2.92	10,512,000	30,695,042
2023	2.953	10,512,000	31,041,936
2024	2.962	10,512,000	31,136,544
2025	2.947	10,512,000	30,978,864
2026	2.905	10,512,000	30,537,360
2027	2.836	10,512,000	29,812,032
2028	2.737	10,512,000	28,771,344
2029	2.611	10,512,000	27,446,832
2030	2.461	10,512,000	25,870,032
2031	2.276	10,512,000	23,925,312
			Total- 294,498,528 Steem.

Approimately 294,498,528 Steem will be minted by 2031

In which year the inflation and Block reward is likely to saturate(tentatively)?

Following a steep decline in block reward from 2031 to 2037(2.276-0.708), it is estimated that from 2037 onwards the block reward is likely to saturate at 0.70steem per block.

Account Recovery
The steemit blockchain has its own fail-safe system in a case where a steemain or user's account gets compromised, this system when initiated is able to recover any user's account in case of compromise.

The steemit blockchain is able to recover a compromised account via its Recovery Account system, where a special account aids the recovery process. Every steemain has a recovery account, Do you know yours?

The Following Screenshots will show-Which is your Recovery Account, How to change your Recovery account, and How to initiate an Account Recovery Process

• Log in to Steemworld using your Posting key.

• Click on Account Details as highlighted in the image above.

• Stay on the Account page that opens after following the previous step.

• As shown in the highlighted section of the image above, my Recovery Account is Steem

Note- Steem is my Default Recovery Account because my account was created via steemit.com so by default all accounts created via Steemit.com have Steem as their Recovery Account. For users who used other account creation services like justyy, steemchiller, steemhunt, or even blocktrades by default have them as their Recovery Account since these accounts offered its account creation Service.

Its important to know your Recovery account whether they are active or not, especially account created before march 2020 because some account creation service used in the past are no longer active. Accounts like Blocktrades and steemhunt, if they still serve as your Recovery Account you need to change them immediately to safeguard your account.

• Click on Change Recovery account tab as shown in the previous Frame.

• Select your new Recovery Account, in this case, Steemchiller, you could use other accounts like steem and justyy who are still very active on the blockchain.

• Click on the OK tab.

• To authorize this change, your Private owner key is required, Input and Authorize.

Note- Account recovery change takes a time period of 30 days from the ay of request to change on the blockchain. My Account Recovery change was never initiated, simply cause I don't need to

When my account is Hacked
In case my account is compromised and my keys changed, the account recovery process must be initiated immediately or within the next 30 days of its compromise.

Doing this very simple and straightforward.

• You can make this change using this Linkhttps://steemitwallet.com/recover_account_step_1

• Fill in the username and your previous owner key.

• Click on Begin Recovery.

Note- Account Recovery must be initiated within the next 30 days from the day of account compromise and must be done using the previous Owner key tied to that account.

Making Encrypted Messages and Use of Memo key.
Making Encrypted Messages in the steemit blockchain may come in handy given the open nature of the steemit blockchain. Making Encrypted Messages is very simple and straightforward too.

The screenshots below show how you can create on.

• Log in to your steemitwallet using your master key.

• Select the preferred asset and click on the dropdown to enable more options.

• Select the Transfer feature

• Select Receiving address and the amount you wish to send.

• The memo is the most important because this is where the encryption lies, Simply use the Prefix # and the memo content as illustrated in the image above(Red Marker). The prefix(#) must come First then the memo content without any space between them.

• Hit the Next and Send tab.

• The result is this an encrypted memo that is not visible to anyone on the blockchain both in the steemit.com front end and in steemworld as shown in the image below.

Encrypted Message on steemworld

To read the content of the memo decryption is required

• To decrypt, Log in to your steemit wallet or steemworld using your Memo key.

• Logging in with your memo key allows you to read Encrypted messages in your wallet History.

Decrypted Message on steemworld

Unless otherwise stated all the images used in this post were designed and screenshotted by me

Thanks for reading up to this point guys and I hope you enjoyed my #cryptoprofessor homework.

This post is made in response to the #cryptoacademy program and the #cryptoprofessor homework by @sapwood.