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RE: Delegation Committee First Communication
We will allow for burning both steem and SBD.
Edit: Adjusted post to show fee in SBD only.
We will allow for burning both steem and SBD.
Edit: Adjusted post to show fee in SBD only.
that's my point. it's much better to accept SBD only. The current sbd print rate is 18%, close to the haircut. Burning steem increases the debt ratio, while burning SBD decreases it. and feed price is changing, so to be precise, you need some system to show the current steem application price and accept/reject depending on that, you really need that?. personally i don't see any good to accept steem. but it was just an advice (i'll not apply). Up to you guys :)
It's not likely to be a major difference either way :)
I do like the idea of just doing SBD and not thinking about it though. Because it's more stable. (Though likely we'd still use the market rate and not a fixed SBD amount). Food for thought though.
Why bother? The goal I presume is to burn "some" Steem to help overall Steem economics (the exact amount doesn't matter) as well as serving as spam filter against frivolous submissions wasting the committee's time (again, the exact amount doesn't matter).
A simple requirement to burn exactly 100 SBD does both and is easier for both the submitter (to know how much to burn) and the committee (to check that the correct amount was burned).
The only situation where this is a problem would be if SBD goes on a big pump again, in which case it is better to not burn SBD at all and switch to STEEM. But we don't know if or when that will happen. It may be a long time or never.
Yes these are good points. I raised just taking SBD only, and we are in agreement with this now, will update shortly.
(initially the thought was that if we were to allow for both, then we anyway will need a price check, but if we can just focus on one, it's just easier overall, as you mentioned)
If you offer a choice and make the equivalence slightly higher for STEEM then the price check will be needed far less often but still address the issue of a large SBD pump (i.e. "100 SBD or $110 worth of STEEM").
Anyway, any of these should work.
With this fee it makes delegation akin to gambling. Where else do you put in money for a service, and you may get something back or not?
It's gambling pure and simple, pay 40 sbd and you could end up with nothing. Oh well try again, oops, nothing again.
It just doesn't seem fair to me. Or perhaps I'm reading this wrong?
Cg
Applications fees are common for all sorts of applications. No, I don't agree that is "gambling" as that term is generally used, although sure all businesses have risks.
Hi @smooth,
Thank you for your answer, I appreciate it as I'm sure you have answered lots of people on this post.
If you don't mind indulging me for another couple of questions/points.
Firstly, I can't think of what applications charge a fee to request to join, and then perhaps turn you down and keep your funds, can you give an example where this is the case please?
Like you said, all businesses have risks, and by me calling it gambling I am in no way trying to be condescending. I'm just pointing out that if you pay money to maybe get delegation, then that is like making a bet which may or may not pay off.
Of course you could say that any investment is like that, however if I buy shares today, they may lose 10 or 20% of their value tomorrow, but at least I can cash out.
Any bet that threatens to take 100% of my money immediately, or pay me back X% is a very high risk bet.
PS: I'd like to say that since I made this comment, @starkerz has made me aware that the 100SBD would only be for old projects trying to renew delegations and that new delegation application fees will be significantly lower.
Cg
Did you not mean, print "some" Steem, like the 30 million a year we print now? You know, to help Steem economics?
What are you guys talking about, 10 SBD / 100 SBD ???
SBD Pump?
As far as I can tell the main purpose of the fee is to prevent low-quality applications which would waste the committee's time. The burn part is a just a bonus. I don't think anyone expects there to ever be enough applications to make a meaningful difference to the overall supply.
Allow or start burning? There is 30 million steem added and growing a year to burn.
What are you waiting for?