So Much Dumb Money! Continued!
(Power-down canceled)
Once again it looks like I'm the dumb one! Don't burn your SBD! You don't get $1 worth of Steem per SBD. Still, as long as Steem doesn't implode, SBD should go back to $1 eventually.
The market cap of Steem right now is $73,892,197. OUCH. There are 12,812,034 SBD in circulation. The haircut rule goes into effect when that 12,812,034 SBD is more than 10% of the market cap. It's no surprise that the current percentage is 17.3%. 10/17.3 = 58%... so you might be able to buy SBD for 60 cents on the dollar, but if you burn it you'll probably only get back 58 cents.
If the haircut rule didn't exist then it would be possible in these situations that Steem would inflate out of control. Many of those SBDs were issued after the value of Steem spiked to $8.
A year ago we had around 3 million SBD and then we printed 12 million more. Today we have around 13 million total. Occasionally I wonder if it's even worth the trouble having this asset around. Seems like a lot of complication for a coin that can't even come close to maintaining the peg.
On top of all that, our rules for SBD revolve around USD. What happens if the dollar loses more value than expected over the next 10 years? Will that cause any weird behavior with the system we've created here? Is it wise to assume that the value of the dollar will maintain its stability?
Perhaps now is the time we should be thinking about other ways that this community could burn SBD. Imagine a first-person shooter video game where bullets cost 0.001 SBD sent to the @null account. A gambling application could also burn it's profits to @null. If the promoted tab worked like it should more users would be using that as well, further removing debt tokens from our platform. Feel free to add to this list in the comments below! Much appreciated.
I think a usefull way for SBD to get burned would be micro transactions to @null for auth-only steem oriented apps. Using SteemConnect for authentication only, possibly is ok for people already using SteemConnect for apps that use actual delegation primitives, but starting to use SteemConnect, only to authenticate as owner of a STEEM account is a really really bad idea, from a least authority perspective. The alternative of authenticating by micro-transaction to @null would make more sense, if we could agree amongst Devs of STEEM apps currently using SteemConnect to just authenticate, to also integrate @null microtransactions, and how to format the memo fields for authentication for a specific DAPP.
@fulltimegeek is working on a sidechain project that would do just that. Whoever burns the most Steem gets the block reward from a Vaporchain.
https://steemit.com/vaporchain/@fulltimegeek/a-cursory-overview-of-how-vaporchains-work
Interesting. I was refering though, more to something like this, but then using some DAPP id and using @null instead of the DAPP owner as target of the transaction.
Indeed! I imagine there will be multiple implementations that allow coins to be burnt for some benefit, as that action seems to be a win/win for everyone.
@whatsup nice vote. but the satoshooter concept mentioned, hmm. that sounds like oh never mind. @edicted is one of very few people I know on Steem who's not spent real time in SS. Phew!
Yeah I got that one from you, friend.
I changed my rewards to 100% power up figuring it would help in the long run, the SBD stuff is too complicated to try to figure out.
Doesn't really matter either way. I've noticed that very very little SBD is being printed regardless of that choice. However, I will admit I've done the same.
Get rid of debt tokens, I like how you think! Besides, like you said, it doesn't behave properly anyhow.
#steem itself is complicated.
Posting part is easy but everything underneath is noise to me.
HF20 should enable us to create free accounts still can’t get it to go.
😅 phew !
Keep on postin
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We’ve all been talking about getting rid of sbdsomce I gotta here a year ago🤷🏽♀️ Apparently it’s not that easy and there is an alleged hard recession about to drop on the world on the next 6 months so you do the maths. If no fiat then Hope is crypto will kaboom
!gif kaboom