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RE: The reason why I am powering down this account, why I will continue doing so even after hardfork and why I think you would do the the same :)

in #steemit8 years ago

interesting and a nice introduction. do you know what the new interest rate will be after hardfork?

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as far as I know, this depends on witnesses.

Hi @nikflossus - which interest rate are you wondering about? There are actually quite a few (SBD interest, SP interest, overall inflation, etc) :)

The SP interest rate. Apparently it's about 350% P/A at present. I assume that's the one which has to be drastically reduced.

I think you are talking about the overall STEEM inflation rate, which is the rate at which they 'print' new STEEM to pay for Steem Power interest, witness/miner pay, content/curator rewards, etc. (it's currently very high, but I don't know the exact number. Around 350% wouldn't surprise me.)

This is being reduced to 9.5%, and will be further reduced by by 0.01% every 250,000 blocks (Roughly 0.5% per year) until it eventually reaches 0.95% in about 20 years.

The 9.5% is technically not 'exact' because when SBD is converted to STEEM it can end up creating more/less STEEM than calculated based on whether the SBD is above or below the value it was issued at. (It's complicated, but I'm just mentioning it so you know it isn't exactly the percentage that is stated.)

As far as the actual SP interest rate, out of the 9.5% inflation, 15% of that is allocated to SP holders.

The full details are here:
https://steemit.com/steem/@steemitblog/final-review-of-steem-economic-changes

Well I was more concerned on the rate at which SP earns interest, before and after the hard fork. There's no mention of how this figure is calculated.

Currently, Steem Power holders get 90% or 95% of the 350% inflation (or whatever the actual inflation number is). I believe it is 95%, but I'm not 100% sure.