I feel that through that inflation platform gives more to new users. If it was no inflation we would have to transfer value manually like other systems do. But things like reverse stock split http://www.investopedia.com/ask/answers/06/reversestocksplit.asp
can keep the price of steem in check.
In fact, inflation of steem is a beautiful thing since thought that inflation everyone is forced to create new values and those that don't contribute lose their value, but not in a very meaningful way since a big part of inflation is targeted towards of those that own steem (in means of SP) in the first place.
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Come on, people. Please read the post carefully. I'm not saying that we should not have inflation - quite the opposite.
I've gone through it again. But the basic idea of rewards is to be gotten through new steem creation (800 per min), or inflation. We could transform it to be smaller % by giving less to existing owners, but that wouldn't be fair to them and would be opposite what whitepaper says. IMHO it's not too big and it should stay the same especially if u take in consideration effects like a reverse stock split.
Else as I stated in previous posts we would need some other way of rewards sharing to take place. With more users, individual rewards fall down so we might need even more steem to be produced or even bigger inflation.
Even with the current system, one could argue that you have inflation % reduced every day as steem is produced at fixed rate if u don't watch only on a yearly basis.
It's just mine uneducated opinion.