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RE: SBD is broken, why not just remove it?
so lets add a possibility of creating more SBD on demand, as timcliff suggested.
so lets add a possibility of creating more SBD on demand, as timcliff suggested.
It still keeps the systemic risk. If the price of steem is in a bubble and demand for SBD happens to be great, people will create too much SBD. There will be problems when the steem price gets corrected down again.
BTS mechanism is better because users who create SBD will bear the risk, not the whole platform. It's unfair to force every user to take part in cryptocurrency speculation markets.
I get it what you mean, but still BTS mechanism in my opinion is far from perfect. It is too difficult to explain even for professional traders.
the funny fact is... that if we remove SBD, then actually 100% payout will be exposed to speculation about Steem price. Right now people can avoid that keeping SBD.
When we are dealing with financial instruments, we can't simplify them so much that they don't function properly. If properly functioning feature is too complicated to explain people, maybe we shouldn't have it. The derivate markets are not our core business, anyway.