I am with @drakos :)
Under the new rules, it will print more SBD (in place of STEEM) during these times of low STEEM prices, which increases the amount of SBD tokens that will be printed at a lower price and redeemed at a (theoretically) higher STEEM price.
Under the current rules, this is totally wrong!!! 5% SBD Debt Ratio Limit.
Under the new rules, this is also totally wrong!!! 10% SBD Debt Ratio Limit.
When the debt ratio limit hits, SBD production stops.
So when the 5% (current rules) hit or when 10% (new rules) hit, sbd is not produced any more and the blockchain will switch to producing extra steem.
This will put a downward pressure on the price of steem.
On 08/18/2018 the SBD Debt Ratio is 6.626% .
This means today we speak about a downward pressure on the price of steem.
After the implementation of the new rules, 10% SBD Debt Ratio, we will be in exactly the same situation, with more debt. Debt is bad, okey?
Ohhh, and that 10% will be reached soon. Who is going to pay down the 15-25 Million Debt? The community? The Users?
You wrote, SBD Holders will get the bag, the SBD Holders will take a risk. SBD Holders are the content providers?
When we go above that 10%...
There was a promise that 1 SBD is around 1 USD. This means there was a floor of 1 SBD is around 1 USD. The promise is gone, and the floor is gone.
You can smile and tell us, the market wil do the price discovery of steem and SBD, but is that really so?
Not since 2016 there has not been. This (unconditional, and therefore false, promise) was recognized as a flaw in the original design and changed.
The promise is that SBD can be converted into "about $1 worth of STEEM" as long as the total market cap is high enough. Otherwise it can be converted into its 10% proportionate share of STEEM.
Also, as I noted elsewhere SBD is not literally debt. It is a smart contract that is has some debt-like properties (and some properties similar to other instruments such as options), but not others. Statements like "debt is bad, okey?" are either foolish or deliberately inflammatory and do not help shed light on anything.
And witnesses as you should do everything in their power, to prevent more than 10% "Debt" ...
As I wrote, yes there is. Please read it carefully.
No, that would imply elevating one consideration over all others. Witnesses try to do the best we can to ensure optimum functioning and utility and ultimately to maximize the value of Steem. That is a balance of multiple considerations.
I am only concerned that Communities and Users (content providers) are part of the considerations and not only stakeholders and their witnesses.
They are, but indirectly. Witnesses work for the stakeholders. Stakeholders want to protect and grow the value of their stake which, at present, includes wanting to grow the user base (which includes communities and content providers).
If, hypothetically, stakeholders decide that users, communities and/or content providers are not a positive force in protecting and growing the value of their stake, and want to change priorities accordingly, there is nothing witnesses can do to stop that. Any witnesses who try will just be voted out.
Bottom line, this is a system based on stakeholder authority and interests ultimately. Everyone needs to decide whether they are on board with that. No one can force you.
Many thanks for this reply.
Sorry but there are a lot of things about SBD that you do not understand based on your comments. I suggest you re-read the post and ask questions if there are parts that don’t make sense.
Is that your reply? :)
I do not understand? lol... Time will tell... let's do the HF20...
Pretty much.. There are several things that you are saying in your reply that are either in direct contradiction to the things I am saying in the post, or even other things you are asserting in your own reply. You are also using terms differently than I defined them in the post, so it is hard to tell 100% what you mean. I don't really feel like getting in a point-by-point argument with you. I'd prefer that you re-read and try to better understand.
I don't think it is as simple to say "Time will tell... let's do the HF20..." either. There are so many different variables at play, that no matter what happens after the hardfork, it will be impossible to say with any certainty how things would have happened differently if the code had been different.
Ehhh, srry now you are talking like elmo, to me.