RE: Why not inflate steem by only 10% ( or whatever reward pool is) instead of having this crazy "printing" going on?

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Why not inflate steem by only 10% ( or whatever reward pool is) instead of having this crazy "printing" going on?

in steemit •  8 years ago 

Can you explain how steem works? I don't understand the concept. How is inflation controlled?

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The amount of steem is doubled every year, 10% is whats being used for payouts, curation rewards, and for new users to sign up. The other 90% is paid back to steem power holders, so in reality the inflation is 10%, it just depends if you hold steem power or not. Thats the incentive to hold Steem Power instead of Steem and only use Steem when you want something with higher liquidity to sell out or buy in. Steem Dollars offer a higheer liquidity as well but they only pay 10% interest yearly.

Thanks for the explanation!

Anytime, glad to help.

The inflation is controlled by code. Steemit is based on a new tech called the blockchain which allows currency creation like steem and bitcoin.