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RE: The STEEM "Shilling" Contest (Round 2) - 300 STEEM in prizes!!
So potentially a group of witnesses could get together and form something similar to the "US Federal reserv" by just printing a whole bunch of SBD and turning it into STEEM, and create a hypothetical hyperinflation? That could sink STEEM...?
Or (please tell me that there is one) anything like a mechanism that prevents something like this from happening???? (Sorry for my novice questions @timcliff, I understand that they are irritating, but I just don't want to lie when "shilling" 😎, I mean the biggest selling point for BTC is that it is limited like gold)... Examining the bluepaper.pdf...
There is nothing preventing it from a technical perspective. The system uses a 3.5 day median of the price feeds for all calculations, so if a group of witnesses decided to try and do something that was not in the best interest of the stakeholders/network, then the stakeholders would be able to vote them out.
FYI, STEEM is not limited like BTC. The inflation rate will continue to go down over the next ~19-20 years, but it will never reach zero. (More details are in the bluepaper/whitepaper.)
Okay, I will study the blue and white paper closer...Thank you again for being patient @timcliff... If you have time, check out this post on an idea for an interesting feature for steemit:
https://steemit.com/steemit/@friendly-fenix/proposal-of-features-for-steemit-difficulty-levels