I said this before when we were on steem, but here is the two sentence summary:

We do need to drastically reduce Hive inflation, but after or as SMTs are released. At the point SMTs are released, Hive would serve one and in my opinion only/main purpose, and that is access to use the Hive blockchain through RCs. At that point, we do not need nor probably want 7-8% inflation. We would want something much lower (3%?) to stabilize the chain and increase the value by greatly reducing supply. That 3% percent would pay out witnesses and those with powered up hive. SMTs would pay authors and curators, etc? Something like that.