What happened to the SBD payments?

in SCT.암호화폐.Crypto • 2 years ago

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Hi everyone.

I'm sorry to be Ms. Question-everything, but I've noticed that there are no more SBD payments in the Steemit posts.
Does anybody know what happened? Is it something related to the recent price fluctuations?
I'd like to know if there's a blog to read about these changes, I often feel in the dark. Or perhaps a Telegram group?

I appreciate your answers. I really like this community,
S.

#crypto #steem #steemit #help #news #sbd

#crypto #steem #steemit #help #news #sbd
2 years ago in SCT.암호화폐.Crypto by
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  • Past Payouts $0.19, 0.00 TRX
  • - Author $0.09, 0.00 TRX
  • - Curators $0.09, 0.00 TRX
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     2 years ago (edited)

    It's because of the rapid drop in STEEM's market cap during the last week. SBDs represent a form of debt against the outstanding pool of STEEM. If the ratio of [SBD market cap / STEEM market cap] gets too high, it can be an economic problem, so at a certain point they stop printing new SBDs so the debt can't grow any more.

    Not sure if the percentages that trigger the change are still the same, but the original explanation was here: Steem Dollar Stability Enhancements.

    If/when Steem's price recovers, the rewards will switch back.

    The following excerpt might also be good to be aware of. It had totally slipped my mind. I'm not 100% sure if this provision is in place in the current hardfork, though:

    Any time the Steem Dollar supply reaches 20% of the market cap, 1% of everyone’s Steem Dollars will be converted to Steem Power at the price feed. This action can be viewed as a partial “bail-in” where everyone is treated equally. This will immediately reduce the Steem Dollar percent of total market cap while preventing immediate dumping of the STEEM which could accelerate the collapse in a positive feedback loop.

    Update:

    I took a quick look at the repo and it appears that the thresholds changed from 2% and 5% to 9% and 10% as-of hardfork 20. So, it slows down printing SBDs when the SBD market cap is 9% of the STEEM market cap, and it totally stops printing SBDs when the SBD cap reaches 10%. I'm still not sure if they ever implemented the above-described forced conversion or not.

    #define STEEM_SBD_STOP_PERCENT_HF14 (5STEEM_1_PERCENT ) // Stop printing SBD at 5% Market Cap
    #define STEEM_SBD_STOP_PERCENT_HF20 (10    STEEM_1_PERCENT ) // Stop printing SBD at 10% Market Cap
    #define STEEM_SBD_START_PERCENT_HF14 (2STEEM_1_PERCENT) // Start reducing printing of SBD at 2% Market Cap
    #define STEEM_SBD_START_PERCENT_HF20 (9    STEEM_1_PERCENT) // Start reducing printing of SBD at 9% Market Cap

    [-]
     2 years ago 

    Thank you, it makes everything clearer.
    I still wonder how long will this bear market last.

    $0.03
    • Past Payouts $0.03, 0.00 TRX
    • - Author $0.02, 0.00 TRX
    • - Curators $0.02, 0.00 TRX
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    [-]
     2 years ago 

    Yeah, last week was pretty rough across the board. Hopefully that was "capitulation" and things will turn around for a while now. The old saying from the stock market is to "Buy when there's blood in the streets." ; -)

    Coin Marketplace

    STEEM 0.29
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    ETH 3111.33
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    SBD 3.98