![](https://snag.gy/uvJfYh.jpg)

As we all know STEEM value is (an will be) constantly falling if nothing changes. Most people don't like it and I just wonder why the most involved individuals are not making simple steps to reverse this. 

Probably most simple solution is this - fix the bleeding to stabilize Steem value. 

## Fix the cap bleeding

Why is Steem loosing value? Simply because there is higher capital outflow than there is capital inflow mainly due to value diluting without additional value boosting.  

![](https://snag.gy/IuMa5o.jpg)
Image: Current STEEM price chart taken from Coinmarketcap.com illustrating permanent nominal price drop in time 

### Tweak A - Cut diluting (Steem inflation)
I know there was already inflation cut for STEEM, resp. SP. However currently there is still 10% which is saying. Just to keep my value I need to be 10% more valuable each year. To provide 10% investment gain,  20% value needs to be added  every year. Being frank, we must admit there is currently no such a value increase per year, not 20%, not 10$, not even 5%. Therefore inflation must be cut to 1% which IMHO corresponds with increased value measured by added content value. I would illustrate this on Cup with water where there is golden dust (which is real value) . Let's say we are able to add 1% of golden dust per year (added value by articles), but we are selling 10% more water with this golden dust each year. No wonder price of this water is declining all the time. 

### Short version: Set inflation rate to 1% 

![](https://snag.gy/7czXvV.jpg)
Image: Inflation illustration, water volume represents number of STEEMs generated (inflated) and gold in a water true internal value 

### Tweak B - Make users more equal in terms of reward power (modify the reward function)
This is not actually influencing Steem price that much but it makes users more happy and therefore Steem platform better  for everyone. As currently there is an experiment ongoing where whales don't vote, it's quite obvious that it makes most people more happy about rewards distribution. My idea is to let whales vote but make their power closer to normal users. Simply said, shrink the reward impact range from both sides to the center.

## Current situation
Current situation is quite a linear, it means, when you have 10 SP and someone has 10 million SP, his power is 10 million times bigger (it's quite oversimplified statement but it works here). It's like in this chart where only few people can give quite noticeable reward. 
  
![](https://snag.gy/S2dDkF.jpg)
Image: Chart representing current IMHO bad model where power spread is enormous (0..1M)

## Proposed model
If Steem modifies reward calculation from linear to let's say logarithmic, we can have much more wanted situation for most users. Whales can admit this might de-motivate them to hold so much SP but when they think about it they will profit from this much more in long-term because of making platform much better for everyone and especially for them as big holders (due to huge STEEM unit value increase).  

![](https://snag.gy/ry3NXE.jpg)
Image: Proposed model putting all participants into similar power range (power doesn't grow linearly but logarithmically) making slower power progress with more SP.

Note: Values are just theoretical. I believe current range is somewhere from 0.00001-100$, where most people's impact is. It is like one has 1 vote and other has 1 million votes.  After applying new model, range can be roughly (under current marketcap)  0.01$ (most users) up-to 1$ (whales) based on current Steem evaluation which gives the range like from 1 vote to 100 votes.  

## Short version: shrink the power diff gap between users logarithmically
 
I believe these two basic tweaks can put Steem(it) back on track with almost no development effort. I guess few hours of development and then some time to update/deploy all nodes would do it, right? 

### Tweak C - bring new money into system - Ads, paid content, features, etc. 
This is another story and will not be discussed in this article. 

## How much can these (A and B) modifications take? Hours to few days with deployment at most. 

## You want to see some changes? Say it loud.
Let me know what you think about it and if you agree or at least if you agree that something must be done,  please be loud and help to make this post more visible in any way. Then, I believe we will be able to say (at least in terms of Steem(it) platform) ...

![](https://snag.gy/uiIJQe.jpg)

Image credits: public images modified/created by me