I don't see any mathematical need to mention vests. It is just complicates the explanation, because all that matters is the rate that the SP is increasing every year and the debasement rate. In Part 2, I will endeavor to explain the difference between those two metrics.

Your failure to see this is probably why your math is off. Youre figuring the dilution wrong because you don't really understand whats happening. Youre imagining that bloggers get paid in steem (they don't)

because if the market cap remains constant the price must drop due to the 100% yearly increase in the money supply.

If the currency is healthy, there is no reason to believe that the marketcap would remain constant. In fact, i challenge you to find a single successful crypto currency that has maintained a constant (vs growing) marketcap. It kind of seems like this constant harping on monetarist nonsense Is an attempt explain prices circling the toilet.

Isnt this coming frpm the guy, btw, who predicted a 1000% increase in the price of steem over 5 years.