RE: Law of Supply and Demand Definition and Explanation OR Why the @sbdpotato experiment just won't work
"There is nothing else wrong with the project."
The whole project is wrong. It won't achieve what is intends to, it's directing funds(rewards) to something that is totally useless and no necessary, and if it eventually succeeds, it will make the SBD market looks like a really elaborated pump n dump scheme.
Burning SBD is not useless and unnecessary at least if you think SBD shouldn't exist.
and if it eventually succeeds, it will make the SBD market looks like a really elaborated pump n dump scheme.
Non sequitur.
Steemit doesn't have a exactly good image when seen by outsiders, so this can be damaging Steemit reputation more than helping.
The posts in Trending? I agree. That's why they started to post more frequently so as to keep the rewards per post smaller.
Also, this make direct big STEEM stakes to "mine" curation rewards with very little effort, wich disincentivizes them to look for other ways to have investment returns.
An internal stablecoin that works better helps everyone. SBD needs stability for SPS funding to work better.
Let me phrase it another way:
Reducing supply is useless if there is no demand.
Sbd have a reason to exist, and I don't think it should cease to be exist, they the community use it is wrong.
Proper arguments still on the works. For now it's just a feeling based of past knowledge.
It's not only about trending page. It's how the blockchain ecosystem as a whole (and this includes trending, market prices and movements, and projects built using the blockchain)
If a usd stable coin on the blockchain is really needed, why not implement one that actually works as a usd stable coin? SBD isn't designed for it. It have stability properties, but not USD equivalence stability.
Let me repeat one thing: SBD was designed to be a stablecoin. It does not work well enough but that does not negate the fact that the original intent behind its introduction was precisely that. Its very name suggests that: Steem Backed Dollar. It's supposed to represent the US dollar on STEEM and be backed by STEEM to keep its value. The downside peg has, in fact, worked pretty well considering the abysmal depths STEEM has descended into.
There is demand for SBD. It's useful for anyone who wants to use a currency much more stable than STEEM.
A currency for what? There doesn't seem to be a lot you can buy with SBD.
Steem.DAO pays for doing projects in SBD. The platform pays for useful work in SBD. Why SBD and not STEEM? Because STEEM is too volatile a unit to pay for work, while SBD is much less volatile. If you ask for 100 SBD a day in your proposal and get it, you can expect those 100 SBD to be worth at least somewhat close to 100 USD for the duration of a small project whereas STEEM can crash or moon at any time.
As I said, there's not a lot you can use SBD for.
I bet you will find many more people willing to accept SBD than STEEM in return for goods or services on Steem. Why? Because of the greater stability of SBD.