Good job!
Reads like a white paper.
You could make another post out of this with the calculations. I am curious what the debt ratio is right now and the percentage people will get for the conversions.
I thought the inflation rate was set in stone?
This blockchain system is very complicated. lol
Well the inflation rules are set in stone, but they are written in a way that assumes the SBD tokens are redeemed at the price they are printed at (which never happens in reality). The result is that the actual inflation can be higher or lower than the rules.
The debt ratio right now is 6.38% and conversions will pay 100% (since 6.38% < 10%). Recently, as in the last few days, the ratio has been slowly declining as the STEEM price is stable to increasing and some SBD is being converted. Over the past few months it was increasing.
Maybe you should right up your own post. I thought Tim was the only person on here who understood SBD's. lol
I though SBD's were supposed to be printed if the debt ratio was below 10%.
For a while SBD was increasing extremely fast.
The current rules print SBD only up to 5% ratio (with the rate reduced above 2%). At 10% is where the "haircut" rule kicks in (SBD become convertable into progressively less than $1 worth of STEEM as the ratio increases beyond 10%).
In HF20 @timcliff implemented a change that boosts the limit for printing up to 10% (with rate reduction starting at 9%). That should be active in a little over a month I believe.
Could you show me where is the haircut in the source code?
I found these lines in database.cpp which convert from SBD to STEEM, but I can't see the haircut of 10% there. Thanks.
It is done by adjusting the price feed
https://github.com/steemit/steem/blob/a6e50bed01bbfbb05938669d713c31977849ec12/libraries/chain/database.cpp#L3120
Thanks. Now it is more clear 😉
Sir is there any way to contact with you ?? I need to talk with you about some issue which is already sended to @smooth-a account as a memo. Please take a look on that.Thank you