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@acidyo
You don't understand the example completely. It is just Indian banking example not steemit inflation. And one more things the rate was annually not two weeks or 2 year, for 2 years it will be 14% and for 2 weeks 0.15%.

Please, read carefully while commenting.

... it's about locking the powerdown speed you choose to use in the future not locking your stake from powering down.

You are saying if you lock your powerdown speed into two weeks (turning all your SP into Steem in two powerdowns (50% per week) it should get you 4% inflation annually but locking it for two years (104 weeks of powerdown (under 2% per week) it should only give you 3% higher inflation.

the rate was annually

2 years it will be 14% and for 2 weeks 0.15%

???

Are you thinking that you vest your Steem and for two weeks you can't power it down but then you can instantly power it all down and only have earned 0.15% by the time? Cause locking your SP for two years without being able to power it down at all is just dumb and almost no one will choose that option when things move so quick in crypto.

yeah man you just dont understand indian banking @acdyo get with the program its 2020

First keep in mind that the example given only of the Indian banking system not of steemit.
The given example rate is annually. For 2 weeks it should be calculated as 4% * 2weeks / 52weeks = 0.154% for two weeks. and for 2 years it will be 7% * 2year / 1year = 14% for two year. So you can see the difference in return.
For flexibility issue, we have option in banking system.

  1. If we choose 2 weeks but not taken that amount back after period finished then no interest will given thereafter, but if we continue again then we receive again return without gap in that period.
  2. If we choose 2 year, but want return back amount earlier, then we receive interest on only period which we have actually lock the money with mentioned rate for that period and some minor penalty on that. Example: if we lock for 2 year and wanted money back after 15 weeks then we received 5.5 % * 15 weeks / 52weeks = 1.59% and additional penalty say 0.1% means we get 1.59 -0.1 = 1.49% return.
    This is the banking system. We can think this type of system OR any similar type, whatever can be done suitably for steemit, not exactly same. I am just agree the practical concept propose by the @steemit, that's it. Hope this will be clear now.
    I am not expert of vest, SP etc.

@mehta, I don't think you understood what @acidyo was talking about.
Besides, your calculations are too simple.

2weeks / 52weeks = 0.154% for two weeks. and for 2 years it will be 7% * 2year / 1year = 14% for two year.

Dude, you forgot to calculate for compound interest in your equations.

Let's imagine a 1000$ deposit at 7% a year compounded monthly (Steem is compounded much more frequently
Year | Year Interest | Total Deposits | Total Interest | Balance
1 | $72.29 | $1,000.00 | $72.29 | $1,072.29
2 | $77.52 | $1,000.00 | $149.81 | $1,149.81

Compounded monthly, 7APR will net you 14.981% over 2 years, not 14%. (Daily compounded would net 15.026%) Please get yourself a financial education.

Do you not know how banks work?

@abitcoinskeptic I understand what is @acidyo is talking. I am just explaining the banking general concept for clarifying his confusion. Which i think he understand.
Here are we just discussing agree or disagree the concept of steemit proposal not 100% right calculation. You know what i means. Hope you understand.