Understanding 5% EOS inflation and comparison with Steemit

Question

Why EOS is starting with 5% inflation rate unlike Steemit which started with 9.5% inflation rate ?

Below is the snapshot of the Steem Blockchain's inflation (taken from FAQ in Steemit website) -

Also, I want to understand a comparison between the two, in terms of the final inflation rate?

Why 5% ? why not more or less than 5? Is it due to more EOS max. supply (than steem) i.e. 1 Billion?

After 20 years, is Steemit going to have 0.95% inflation for lifetime ? If yes, is EOS having similar economics?

NOTE: I know the reason of introducing the inflation i.e. to incentivize the BPs and SPs, work proposals.

Please explain in detail....

Thanks!

Answer 1

I have understood the concept of inflation - fixed or varying (increasing or decreasing).

I have shared my thoughts through this article -

Understanding Inflation in Cryptoeconomics - https://medium.com/@abhi3700/understanding-inflation-in-cryptoeconomics-163162f4107e