RE: Liquid Steem Rewards are Here - Math Time!
As I understood it, the inflation rate for SBD was changed recently to 4% weekly (someone else mentioned 5%). This is an obvious reason for the rapid fall in the price of SBD.
As far as I know, there's no SBD inflation rate. Do you perhaps mean its interest rate? Because while there's Steem inflation, the amount of SBD getting printed is decided based entirely on the price-feed value of Steem: The higher it is, more SBD gets printed (because STU goes up). And if Steem's price falls too low and leads to a too low market-cap, less SBD gets printed (as we are experiencing now).
There's no SBD inflation rate anywhere.
I am not sure about the Steem inflation and where the Steem is coming from. Does this get deducted from the yearly 9.5%? I think it might be in addition to it, and is "paid for" by less SBD getting printed. @eonwarped, do you know? I can't really make it out in the github document you've linked.
SBD's falling price has nothing to do with the above, just with the volatility of the crypto market right now and SBD's limited liquidity in particular.
new_steem = virtual_supply * current_inflation_rate / STEEM_BLOCKS_PER_YEAR
So you can see it's actually generated per block. It says instantaneous rate, which means this block it increases by a percentage given by dividing the annual target rate by the number of expected blocks per year (I suppose this number isn't perfect though, so rough estimate)
Technically, a percentage of this new steem is allocated to rewards pool. The amount allocated on a post depends on this amount and the votes. The payout is just converting to the steem to the SP,steem,SBD based on feed price.
Not sure what you mean by taken out of the yearly inflation.
@eonwarped. I am happy to see the equation “new_steem = virtual_supply * current_inflation_rate / STEEM_BLOCKS_PER_YEAR”
Thanks for confirming this. It is what I would have expected.
My questions on this are
@geekorner has the link above to where it is (desktop mode will send you straight to the line number)
inflation_start - blocknum/250000
978 - 20,824,939/250000 = 894
Which is representing 8.94% inflation at block 20,824,939 , which is the block I just checked just now.
@geekorner. Thanks for being so helpful to everyone. It seems there are loads of questions from people with different agendas:
For the benefit of SBD investors I have a question. You wrote “Do you perhaps mean its interest rate?”. The question is “Do holders of SBD receive interest?
There's a field called "sbd_interest_rate". Currently the value is set to 0, but I remember reading something about there being something about it in the White Paper.
The groundwork is there for it.