RE: Steem Dollars have Limits

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Steem Dollars have Limits

in steemit •  8 years ago  (edited)

Assuming Steem market cap stays constant, and SBD is not destroyed, and the 10% interest on it stays constant, then SBD will make up 10% more of the total Steem market cap every year (ie if it's 3% now, then will get to 3.3% next year). Curious on peoples' thoughts as to whether this means we're likely to eventually hit the 10% limit proposed in this post. Also, does anyone know what (value of SBD)%(market cap of Steem) is right now?

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It is currently at 1%, the 10% interest rate will not last for ever. Assuming a flat market cap and a supply approaching 10% then we would have to lower interest rates.

Thanks. Also, in the long run (if I understand correctly, not sure on this) 3.875% of the market cap of Steem will be paid out as SBD for content rewards each year. Doesn't this also contribute to us moving towards that 10% limit quickly, and reaching it in less than 3 years (assuming market cap is flat)?

I'm not clear on whether It's another 3.875% of Steem value given as SBD for content creation rewards per year, or if it's 3.875%/2 in SBD, and the rest in SP. Would really appreciate a clarification from someone.