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If you remember I was checking the Power down statistics not long ago.

On that screenshot the amount of SBD in existence was also visible.

1 November 2018 (15 days ago).

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15 November (now).

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The supply of SBD is going down.

The reason is simple.

An SBD is basically an IOU for $1 worth of STEEM.

Through a convert function (not internal market) in the blockchain you can always convert (in 3.5 days) a SBD to $1 worth of STEEM.

In this process the SBD is destroyed.

With the the SBD price currently at 92 cents it makes sense to convert because you get more STEEM for your SBD's than when you would use the internal markets.

(If you don't want to go through this hassle you can also choose to power-up your post with 100% SP as long as SBD is below $1)

This is how the SBD peg works on the underside.

People buy SBD and convert until the price is back to around $1.

Of course this process does create a lot of extra STEEM so the liquid supply has gone up a bit as you can see in the screenshots.

Let's see if users will power this up.

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