The code creates incentive to act for users. Presently the users are encouraged to extract rewards through financial manipulation that is dropping the marketcap of Steem steadily, and keeps the price from rising. SPS isn't doing that since it hasn't been introduced yet.

Your point about inflation is well taken, but code, whether to effect a tax that further decreases rewards flowing to the Marketing Dept. (content creators, dapps, etc.) and instead encourage financial manipulation to extract those rewards using the power of subtantial stake, or to create a tax that decreases rewards flowing to the Marketing Dept. and divert those rewards to the Development Dept., is the basis for why the inflation is allocated the way it is.

I agree that allocation of the inflation is putting downwards pressure on the price, and if we allow SPS to take 10% of the inflation, the decrease in rewards received by creators will be more than 40% from the current situation. I predict an exodus of creators, and an absence of new users, as well as immense powerdowns from every substantial stakeholder so that they can sell Steem as soon as possible, because the price will crash as the market disappears.

Steem is nothing without it's market. It's no more a currency than the first videogame ever, Pong, without buyers. Without creators there will be no one interested in buying any Steem, because it is their posts and comments that draw eyeballs, as well as the games and other attractions that are also content.

This is probably our last chance to avoid that terrible circumstance. Let's hope we avoid it, and our Steem retains it's present (dismal) value.