You are viewing a single comment's thread from:
RE: The STEEM VIRTUAL SUPPLY decreases - I have a QUESTION for you [ENG-ITA]
Ok, I understand. It's a little bug, basically.
But the question becomes: when the 10% threshold arrives, is the virtual supply also calculated using that fixed price (to quantify the market cap of SBD in STEEM)? Or is the real SBD/STEEM PRICE ratio taken into account for this use?
It's not a bug. They did that intentionally, in order to prevent the blockchain from spiraling into "bankruptcy". And during those times, the virtual supply is calculated using the fixed value. As a result, when SBDs are not printing, the virtual supply will never shrink (without large amounts of burning).
I called it a "bug" not because it is not intentionally, but because the calculation of the virtual supply doesn't reflect the "real" virtual supply (given by the real STEEM price). Basically, if you lock the ratio to 3.97, you are saying that STEEM can't be low of 0.25 approx on the internal market (for the blockchain), and the virtual supply will be calculated basing on that price and not - for example - on a real 0.20 USD price. In that case, the real SBD/STEEM would be 5 and not 3.97 as the blockchain says. In this way, the "real" virtual supply is different from the virtual supply that the blockchain shows, based on an artificial rule.
And I arrive to a new problem: so, if we arrive to 0.20 USD for STEEM, and we are above the 10% threshold (so the blockchain locks to 3.97 the SBD/STEEM ratio), and if I complete a conversion of 1 SBD, I obtain 3.97 STEEM, right? (even if the "real" SBD/STEEM ratio would be 5)
(Follow my reasoning, I understand that the blockchain functions on the rules written for it, but I am trying to take one-to-one the market in which STEEM are and the blockchain with its rules)
Yes, this is exactly correct.
All this was to understand the exact functioning. This is because when I started on Steem - and even today in most cases - where I talked to people or read their post, SBD was defined as "1 USD in STEEM" which, according to the above explanations, is a false statement, because SBD is 1 USD in STEEM only in certain market conditions, otherwise its value is much less. Also for this reason I talked about a bug (not in the meaning of an error, something like a "incoherence, which has probably misled many users).
Anyway, thank you for your time. I wish you a nice week :)