Dan has been quoted - ## "There's only 10% effective inflation per annum for Steem Power Holders"
That in itself is not big deal.
But Steem speculators experience **110%** effective inflation.
# **This is the problem!**
Because of this asinine inflation rate there can never be a virtuous cycle of growth by speculation like Bitcoin experiences!!!
Speculation is not evil. Steem apparnetly tries to make a point that price is a function of order book. It is, but at 110% inflation there is so much leakage into the market that price will be almost impossible to sustain in an upward manner.
Lucky for you guys, I HAVE A SIMPLE SOLUTION!!!!!
## Change the inflation rates.
Keep Posting and Witness rewards as they are. Now Drop Steem Power rewards to a new mechanism.
1. Lock up your Steem (Power Up) and earn 5% per year and get voting rights etc.
2. Knock Power Downs from 104 payments over to two years to 4 payments over 4 weeks.
If we don't do this this system will never reset in a manner that makes upward price action sustainable.
Witnesses. Founders. Users. DISCUSS. If you don't make a change like this, then this innovative system is doomed.
The question is - FORK STEEM to this upgrade? Or FORK STEEM and sharedrop? Only the founders can choose who to sharedrop to according to their license. I suggest the community upgrades THIS chain.
