A Brief Look at Dilution Rate of Steem Power in New System by clayop

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steem · @clayop ·
$33.12
A Brief Look at Dilution Rate of Steem Power in New System
The following graph is a relationship between Steem Power ratio (`total_vesting_fund_steem/current_supply`) shown in x axis and annual change in share percentage (`new_SP_ratio/old_SP_ratio - 1`). If the y value is negative, it means your share will be diluted after a year. 

![](http://i.imgsafe.org/0b2ae55dc8.png)

At the current SP ratio (around 95%), the value is -7.3%, implying SP holders will lose 7.3% of relative shares, assuming there is no SP ratio change. The equilibrium ratio is 0.15, which is much lower compared to 0.90 in the current system.

For more comparison, the following graph shows share percentage changes of current (orange) and new (blue) systems.

![](http://i.imgsafe.org/0b2af18cac.png)


And here is a brief summary table

|Share Change|Current|New|
|-|-|-|
|STEEM|-300(?)~ -50.0%|-8.7%|
|SP|-5.0~ +inf%|-7.4 ~ +inf%|

The new system significantly reduces disadvantages on liquid shares (STEEM) from -50% to -8.7%, at the same time impose more burden on SP (at the current rate, from -2.6% to -7.3%)
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vote details (269)
@vegascomic · 
Thanks, I understand this part of the new changes better now.
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@jrcornel · 
That is interesting. So, Steem inflation/dilution is dramatically reduced, while SP inflation/dilution increases slightly... It will be interesting to see how the community and market position themselves going forward.
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@shaka · (edited)
Ideally, the increased burden on SP holdings will let account holders intensify their curation efforts. A penalty of -7.3 % can easily be compensated with curation rewards (+20 % p.a.  is in fact very doable under current conditions). Thanks for bringing up these numbers (and thus more clarity).
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@biophil · 
It's also possible that more people powering down will result in fewer total SP voting, which means each voting SP will have a greater effect on author and curation rewards.
👍  
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vote details (1)
@shaka · (edited)
Yes, possible. However, I personally don´t expect to see a strong increased in the powered down volume when the new 13week rule comes into play. Rather the opposite. Because with the shortened lock-in you will give away a substantial part of your vests with each weekly power down, which will not be "compensated" on paper with the vest-based pool distribution. I expect this to be a psychological barrier to power done for many. I´m just speculating, of course. But I´m optimistic :-)
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@hr1 · 
Thanks, Clayop! I was missing such an analysis in the discussion of the proposed changes.
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@papa-pepper · 
I recently saw a witness interview with you, and will be voting for you soon (I just have to figure out which one my 30 to drop).

Anyway,  since I know that you also post in the Korean language, I wanted to mention Operation Translation to you, where myself, and a few other authors, allow the translation of any of our posts into other languages and allow the translators to post the translation and keep all the payouts.

If you know any Korean speakers who can translate from English, this may be a good opportunity for them, if they wanted to try. 

Some of the Spanish Translations of my posts have even gotten bigger payouts than mine, and I think I'm in the top 30 "highest paid authors" for the last 30 days, so many of posts do quite well.

Anyway, I just figured I'd mention something since I am trying to find ways to  build up the international community.

I link the Operation Translation post at the end of all my posts, so you can find more information there, if you want.

Otherwise, please disregard and don't worry about it.

Thanks for all that you are doing to help steemit and make it all that it can be!

- @papa-pepper
👍  
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