Highlights;
Current Rate of Steem Dilution (today): 0.95% per day
Rate of Steem Production on first day of Year 2 (from now): 0.21% per day
Minimum Rate of Steem Production (100% per annum rate): 0.19% per day
Dilution Rate of Steem, from now till 1 Year's time: 346%
Dilution Rate of Steem in Year 2: ~100%
After a second read through Steem White Paper (https://steem.io/SteemWhitePaper.pdf), and a reply from 
So, first things first, the Dilution Rate not currently 100%. It will eventually get to that number (and stay there) over time, however Steem is still in distribution mode currently, so it’s is running at a much higher rate.
Steem is currently being created at a rate of 800 Steem per minute.
This is currently split in the following way;
Content and Curation Rewards: 40
Mining: 40
Steem Power Rewards: 720
Currently, the Steem rate of production is much higher than the 100% per annum cap. The 100% dilution rate (0.19% per day) will be hit sometime soon after 12months from now. Year 2 starts with Steem of 541,849,616 with supply for the @800 Steem per minute to be less than that at 420,480,000 (calculations to follow).
Here is the extract from the White Paper explaining how the Contribution Rewards Change;
- Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
- POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round)
- POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater.
From here on out, I’m pretty confident I’m close with the calculation, however I may have misunderstood some minor details, so if your a better educated user, and see a mistake, let me know and I will edit…
From this, I have calculated that, the generous mining rewards remain constant (in Gross Terms, diminishing in Real Terms) until (by my calculations) 2.8bn Steem are in circulation (Roughly 5 Years) (See Chart Below for further info). However Curation and Content Rewards Begin to increase in Gross Terms when 542m Steem are in circulation (Roughly 1 year from now).
For simplicity, I am going to provide some calculation so you can visualise the dilution rate for the next year…
What this essentially shows is that, the Dilution rate for Steem over the coming 12months will be 346%. This is however heavily weighted towards the present, with todays dilution rate running at 0.95%.
The first day of Year 2 looks like this..
Steem in Circulation: 541,849,616
New Steem Supply per day: 1,152,000
Steem in Circulation After Day 1: 543,001,616
Steem Growth Day 1 Year 2: 0.21%
The 100% Steem Growth Rate kicks in at 0.19% per day (0.19% compounded 365 times comes to 100%). Moving into Year 2, the Steem Daily Growth Rate will move slowly towards the 0.19% cap, and then stay at this rate moving forward.
Why is a High Dilution rate a good thing?
The sky high dilution rate is going to distribute Steem more evenly amongst users. The larger accounts cannot keep up with Creation Dilution, and thus this gives credence to 
“Last analysis I saw showed money being distributed to more people and away from the top.”
Please see https://steemit.com/steemit/@hisnameisolllie/the-top-1-steem-v-the-real-world for further information on equality in the Steemit ecosystem and how this should change moving forward. Especially comments from
Sources
https://steem.io/SteemWhitePaper.pdf (Pages 35 onwards)
https://steemd.com (Right Hand side of Home Page)