I don't think that would much affect Steem price for long. Extant whales would get fiat for their Steem, which they would not reinvest in Steem, but spend on hookers and blow (at least that's my assumption based on my knowledge of extant whales), while the SP of the new whales would not encourage anyone and would have a negative impact on user retention as normies fumed at the shitposts making $200 on trending while they got nothing.

The White Paper assumed that 30% of rewards would inure to those normies, who are presently only getting around 1% of them. Casinos don't long survive and profit if they don't parade some winners from time to time, and 1% is woefully inadequate to lure in gamblers.

I don't think 30% is a joke really. It's far more than most folks get IRL, compared to banksters.

Distributing Steem to ordinary folks and great authors would encourage them to post, comment, and interact, and ordinary folks are innately social - they want to benefit others. It's why upvotes on Fakebook and Reddit exist. Handing out 30% of Steem as rewards to those folks would distribute Steem more widely, and they would gladly upvote their friends and good authors more if they could. They're not spending it on hookers and blow, like whales. Those that do never become of greater import to the Steem society. Some folks need potatoes more than they need bigger upvotes to hand out. I am glad if I can help them with my upvotes, because I want them to have potatoes a lot in that case.

Potato buyers would not have ire at Steem as a result, and would be likely to invest in Steem if they become sufficiently potatoed, and also to recommend it to their friends, putting upwards pressure on the price.

Angry folks that see the $200 shitposts on trending while they are reduced to eating recycled food will never invest in Steem, and never recommend it to their friends, and they will leave, putting downwards pressure on the price.

User retention rates indicate the latter is happening a lot more than the former. That's bad business.