The insane inflation that steem has is completely unecessary and as bobsunday said the price will be impossible to sustain.

A fork could be done to reduce steem inflation from 300% - 100% to about 10% and steem would work perfectly fine, much better actually. This would mean that the reverse split won't even be needed,not for decades at least.


They could make the system much more attractive to investors by simply stopping printing so many coins. There is no real purpose for having so much inflation, they are shooting themselves in the foot with the insane printing.

I have discussed this with smooth and apparently the inflation is there as a psychologic incentives to buy steem power ( your balance is growing when you have steem power ). As we have seen recently this incentives does not work, people want to grow the value of their account not the number of SP and investors are not falling for this. I would also argue that a growing number of steem power have a negative psychological effect ; users think they earn money without doing anything which means that many don't bother curating and actually work to earn. 
__Want to keep talking human psycho?__ Well, If you lock someone in a prison this person would be a lot more eager to want out than someone sitting in the same cell with the keys. Which is why a shorter lock time period would probably result to more people locking their steem.
There are also much better ways to incentivizes people to buy steem power, as OP said you could reduce the lock time period, you could also increase curation rewards percentage.

__So you ask what is going to change if we completely remove the unecessary inflation?__
Not much, your steem power balance will remain exactly the same instead of growing but your account value is much more likely to grow. Most importantly the price of steem will be allowed to breath and grow which is essential to pay for the increasing amout of bloggers.

As OP said speculation is not evil, it is actually the lifeblood of every crypto. Steemit thought it could do without but it can't. 

Some links where I have been discussing this matter

https://steemit.com/steemit/@snowflake/5a2p2k-why-not-inflate-steem-by-only-10-or-whatever-reward-pool-is-instead-of-having-this-crazy-printing-going-on

https://bitcointalk.org/index.php?topic=1558366.1040

Regarding Op's proposals they are meant to incentivize people to buy steem power. I would argue that the first proposal is not even necessary because there is already an incentive to buy steem power which is curation rewards, the more you have power the more steem you get, maybe they should increase curation rewards but the system is working as intented.
Also the very reason we are concerned about people powering up or down is because of this crazy inflation, remove it completely and you will see that powering up won't be so needed to keep the price steady. The second proposal however is good in my opinion, people will be much more likely to convert to steem power with a much reduced time lock period.

This might mitigate the crash but it won't be enough to sustain upwards price action. 
The more coins is being printed the higher market cap will have to be to support the same steem price/unit.
You think that inflation is no big deal because you are being compensated so yeah you are not necessary losing money but the inflation means you are invested in a project that will reward less and less users overtime.

Great points and I agree. No one is willing to put any money to work here or even power up when the price is falling by 10% per day... why would they?!

The solution will need to come from the community. Otherwise wait for it ... It's centralized!!! 

The founders will probably just leave like Bitshares if we don't make the upgrade feasible as it's notoriously hard to upgrade blockchains this drastically

@smooth @dan @ned @blocktrades @pfunk @nanzo-scoop @cryptoctopus @fyrst-witness @tdv.witness @dantheman @roadscape @jesta @sneak @luminati

Tagging people in posts doesn't do anything to notify anyone unfortunately :)

Tagging the founders does not do anything - it does not notify them as it might on say Twitter.  I suspect they will see it anyway since it as at the top of the promoted list or because someone they know might notify them.

But you made a great suggestion and I may be wrong

>I think this is a non issue. The price will find its true value, sooner or later.

People have been saying that at 0.5$, 0.4$, 0.3$, 0.2$. Now the price is lower than before the launch. How do you explain that steemit's value was higher when nobody even knew if the platform was working?


> Once there is a tiny uptrend the price will explode again, as when there is any demand there is little supply.

That won't be the case next time, people have been powering down for months in anticipation for the next rise so you can be sure it will be short lived. Many people are holding off selling for now but still the price is crashing.

>For speculators the inflation does not matter as they only look at short term. They are not holding for a year.

It does matter because when a currency has so much inflation there is no market for it, speculators are running away. No one wants to touch a currency that is losing 10-15% of its value every couple days. That's way too risky.

>The reason why SP work well I think is be a use investors really need to be invested long term and for that they get a real stake with voting right and influence. I think that is very important.

There is no need to lock people's wealth in order to get them invested long term. All you need is a project that is sound with a sustainable model and an investment that gradually grows in value.

I agree that witness pay should be changed.  Its problem is IMO linked to how they're paid in SP.  It causes seepage. I expand on my views here: https://steemit.com/saving/@bobsunday/round-2-community-organized-rescue-mission

Great points! I did not realize that witness compensation accounts for over 50% of the daily rewards... And they are mostly all powering down... as you mentioned that is probably the first place to start if you want to reverse the current trend.

How about punishment for exiting position quickly?  Like skip the 2 year power down by taking only 50% of your stake.

> with a huge interest payment for you

Powering up doesn't give you interest , you actually lose money every year when powered up.





>They see the price slide and slide without any break and they believe that in the future it will be much cheaper to buy steem. So they hold off on buying and then they forget.

The price is not going down because people forget to buy, it's going down because people don't understand how they could possibly get a return with such inflation and they are questionning the long term viability of the platform.

> Don't threaten a fork though, it'll adversely impact the price for everyone and your fork won't gain traction due to all the people pissed off you crashed the price of their investment.

You don't need a fork to achieve this, it 's going to happen regardless. People are already pissed and the price already crashed. The situation is pretty urgent if you ask me. 
Some say that steemit would still work if the price was 0.001$. That's probably true however you won't have many people left to post content and the reputation of the site would have taken a big hit, so I suggest we do something about it soon before that happens because that's where the price is heading. I see no reason why people wouldn't want to fork to remove the unnecessary inflation, it will instantly make their stash more valuable.