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RE: Steem experiment: Burn post #214
From the rules page:
Incoming SBD will be converted to STEEM using the blockchain function if SBD is trading at or below 1 USD. SBD will be sold on the internal market (buying STEEM) if SBD is trading for more than 1 USD.
So regardless of the price of SBD it is converted into STEEM? This creates only downwards pressure on SBD surely? If SBD is less than $1 shouldn't you buy SBD with STEEM and then burn it or save it to sell for STEEM if SBD goes above say $1.05? The wording used is a bit confusing but I think I have interpreted it correctly.
"Converting" doesn't put downward pressure on SBD. You may not realize that "converting" is a separate blockchain function which destroys the SBD and delivers "about $1 worth of" newly-created STEEM 3.5 days later. It is not "selling" the SBD.