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That's correct, assuming no resulting increase in Steem price (which is probably too much to hope for in the short term at least).

A 20% reduction in author rewards would devastate retention.

Please reconsider this. See my post here, and school me, or let's move forward without destroying the community we yet retain.

20% reduction. Holy crap! I uuh... wow. I might need to rethink a lot of things regarding Steem.

Wait, an aprox cut of 20% per post on author side?