How well is STEEM Power protected from inflation...really?
So I've been observing my "stash" of Steem Power the past few days and noticed that while the "virtual_supply" has been increasing on average around ~1.37% per day, my Steem Power holdings have increased around maybe 1.31% each day. While this at first may seem to not be a huge difference, when extrapolated out over a year the difference becomes a whopping 21.9%. Which basically means our SP has lost 21.9% in market cap "value" in the span of just one year (unless I'm mistaken, which is entirely possible heh).
So my questions are...what forms of inflation is our Steem Power not protected against? Can we expect the increases in virtual supply as compared to SP to continue as they are, or will this difference shrink over time?
Any and all input is greatly appreciated.
Thanks, and STEEM on!!
The value of the money supply should increase as the platform grows. So while your slice of the pie might be getting a little smaller over time, it's a smaller slice of a much larger pie.
And active participation on even a very casual level will increase your stake through rewards for curation, posting, and commenting.
You are only protected when less than 90% of steem is powered up.
Now this is interesting...hmmm...must be a hell of a lot of powered up steem right now then. Curious to see how this all plays out; can't quite wrap my head around it.
...is there ever any instance where Steem Power is actually deflationary? Is that possible?
Good point out!
Definitely something to think about :/
Upvoted you