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RE: [QUESTION] Is it possible to convert STEEM to SBD on Steemit.com?
You can't "convert" STEEM to SBD.
The reason is that the conversion process serves to peg SBD to USD. Conversion "guarantees" that SBD will be worth at least 1 USD (more precisely 1 USD worth of STEEM).
Also, you talk as though 2-way conversion would somehow be inconsistent with the peg. That doesn't seem true to me. If SBD is overvalued, it would be handy to be able to issue new SBD on demand to lower the price. What am I missing?
I'm not sure if it would be inconsistent. I think the lack of STEEM->SBD conversion is supposed to make SBD scarce. It may also have something to do with stopping people from "harvesting" interest by creating SBD.
The point is, conversion in one direction is necessary for the peg while in the other it isn't. That's why the one exists and the other doesn't.
Yep, that makes sense. Thanks. Your answers are always appreciated!
Ok, good answer. So conversion is one-way, and the only way new SBD is generated is through author rewards and interest? Makes sense. Somewhere I thought I remembered that there was a two-way conversion, but I must have misunderstood.