To keep the cash flow coming, like many here expect, then you have to keep printing money, which results in inflation.
I understand this and I don't say we should stop printing money. I'm just against keeping the printing rate at a fixed level, as if we aimed to be a start-up forever. This achieves nothing, yet sends a very unpleasant message to people investing in Steem.
We could say that inflation starts decreasing after e.g. 2 years (and continues decreasing slowly for the next 100 years). If Steem does not gain much traction by then, it will be a failed business anyway and no amount of financial incentives for bloggers & curators can change this.
Anyway what is better: have 5% to distribute from a market cap of 500M or 10% from 100M?
STEEM provides value for Steemit by creating a tangible product to reward for participation. Steemit's value to STEEM, thus far has fostered interests and grown the market capitalization. When the paydays start dwindling, interest is apt to ween as well. There is a finite number of people that will be interested in being involved with crypto in any way, STEEM included.
They're watching all this and may or may not invest when the time is right. The good news is, you do have a growing member base that has made a lot of money here. Let's hope they come back in after they've cashed out. There's one sure way to ensure future growth...re-investment.