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RE: Where does Steem money come from? (response to @georgedonnelly)
@andrarchy has some ideas and did some interesting videos. The system is still being tweaked, so I would call it still experimental. There are 3 currencies in the system roughly analogous to debt (liquid STEEM), equity (STEEM POWER) and a derivative product with a loose peg to USD. To me, the most interesting observation so far is that even if the theory is sound, the system needs to explicitly account for the psychological implications of inflation rate. I believe that's what the hard fork revisions are addressing.