With the built in 100% per year inflation this would mean that people would have to buy so many coins that the market cap doubles every year in order to keep the coin price stable.
1. It was changed last year as stated above. The inflation rate is now about 9.25% and declines by 1/2% per year to 1%. The scarcity is similar to other cryptos, though not quite as extreme in the very long term as fixed-supply cryptos like Bitcoin
2. Keeping the price of the coin stable was never required (nor intended) because the number of coins in your wallet would passively double each year anyway due to anti-dilution payments (aka SP interest). The market cap and the value of your holding would be the same after a year
assuming the price dropped in half. This was always misunderstood as "zOMG inflation!" when it really wasn't a real problem anyway (beyond poor perception which does matter from a marketing point of view, even if based on misunderstanding), but in any case no longer exists.
3. There are some small mechanisms for coins to be destroyed so scarcity is tighter than the inflation rate would suggest. For example, placement on the Promoted page is determined by burning Steem Dollars. Currently top placement there costs about $130 and I've seen much higher ($300-$1000) recently, along with many smaller payments by the lower ranked posts on that page. In the next update it is planned that creating accounts will also require burning, and other forms of payment to the network may be added later.
Welcome to My blog about Top Countries of the World Map with the Highest Number of Steemit Users.
