The inflation if hive is still relatively high - more than 7% p.a. compared to Bitcoin's current inflation rate of 1.8%. Including also the proceeds from the Hive DAO, this rate is increased even further. While I would argue that the share of inflation going directly to the market is lower than in the case of Bitcoin, still a fair share is being sold immediately. If we were to cut the inflation by 50% I would thus expect the Hive price to react much more positively than the Bitcoin price.

Any PoS shitcoin is capable of low inflation. That doesn't automatically translate into a higher market cap.

In the past, we have seen already which negative impact the constant selling of Steem by STINC had on the Steem price and I am convinced that the fact that this is now over on Hive is one of the reasons why the Hive price is significantly above the price of Steem some months ago.

I would be surprised if Steemit, Inc were still selling at the rate it was before February. Three of the most highly paid employees of Steemit, Inc quit: all the developers they had on board as well as the head of communications. As far as I know, they haven't hired replacements.

Reducing the inflation could result in an additional boost to the Hive price, which would likely attract new investors and users. Indeed, I remain convinced that halving the inflation could result in an increase of the Hive price, which would over time for content producers more than compensate the loss from lower inflation.

That would also consolidate the top heavy stake distribution. The impact on network security would be negative as we learned or at least should've learned from the Justin Sun debacle. The only people benefiting from a lower inflation but higher token price would be the current whales.

Besides, altcoin speculators do not care about which single digits the inflation rate of a coin is. Not at all. And this is demonstrably true. Consider the fact that STEEM went from 7 cents to $8.5 from March 2017 to January 2018. The price went up by over two orders of magnitude in less than a year! An annual inflation rate of 8.5% is absolutely nothing compared to that.

Altcoins are quasi-derivatives of Bitcoin. Their own exact inflation rates are meaningless from a speculative point of view. Sentiment and hype are everything. When it comes to the use case of HIVE, a "high" inflation rate of 8% makes it possible to put the coin into the hands of a lot of people. HIVE has one of the best distributions in the entire industry. Let's not ruin that by shutting down the inflation.