Where do you get 5% from? I thought it was 25% from the white paper. Also, don't you get a 1 steem per block? Once you have that steem don't you get a shit ton just from inflation?
5% seems totally reasonable for a developer team paid by the system to do work. I agree it's more than we should be paying for hosting a node, but fair if you guys are doing a lot more than hosting a node. That said I was under the impression it's much higher than 5% so can you help me understand the actual amount?
5% each of the total witness reward budget. Technically it is 1/21 (4.76%) but 5% was a round number.
The total witness rewards (for all) goes to 0.75% of market cap per year in the white paper (and I assume code altough I haven't checked it). That strikes me as a very reasonable amount to pay not only for the literal infrastructure but also ongoing secondary services and investment, if possibly low. There is no other source of funding for any of these things, so long term all must be included or they won't be paid for.
Not really. Inflation is both a gain (in nominal units) and a loss (in value per unit). You don't make a pie any bigger (nor the value of a portion, say 2%, of the pie) by making the slices smaller and smaller.
I would like to restructure things a bit so this massive inflation no longer exists, as I don't think it is really necessary, but doing so won't change the fundamental economics much if at all, just the numbers (perception).