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RE: Law of Supply and Demand Definition and Explanation OR Why the @sbdpotato experiment just won't work
I'm not so sure I agree with this post, SBD was supposed to be pegged 1:1 to the USD, if it isn't it looks broken and looks bad for Steem, it's in the whitepaper. If we aren't going to fix it we might as well get rid of it. Historically the Steem price follows SBD and the idea is that the Steem price will follow any uptick in the SBD price and improve the ratio even further.
So, your premise is essentially because something isn't working according to the whitepaper that it reflects poorly on our chain.
I don't think that necessarily follows but there are more pressing matters than the broken peg. People engaging in meaningful curation less is one such thing.
After all, the white paper suggests voting should be an evaluation of a network contribution. What stands at odds w meaningful curation?
What activities are you currently engaged in that detract from meaningful curation? Selling votes for one which MB still does engage in... although I am glad y'all have made strides to prevent the votes from being abused.
Even so, the case can be made that vote selling undermines the very effort you are engaged in to increase Steem's demand. I've bought more Steem than I ever had once I was filled w hope from the #newsteem spirit and many repenting from selling votes. Not sure if it lasted considering such services still exist. Web based promotion would be such an easy transition with the right ppl so I don't know why we haven't ceased from reward pool based promotion. I digress but my point stands about being consistent.
I think it's inconsistent to make a general white paper appeal while one is engaging in activity contrary to it (irrespective of what Ned's former assent to the practice). If you want to make an appeal, it ought to be more specific as to why failure in this particular aspect of the WP is detrimental.
Otherwise, it seems rather arbitrary. So, why precisely does the peg being broken reduce demand for our native token. That's the question I hope to understand.
Historically SBD pumps are followed by a rise in the Steem price, that's the goal here. Also Minnowbooster earns maybe 5 SBD per day on vote selling currently and is hardly worth noting, we will be phasing down the minnowbooster vote selling services but we can't shut them down that easily without first migrating the lease market fully over to dlease which we are in the process of doing. Minnowbooster is a monolithic codebase and not easy to just remove one part, dlease is microservices based and much more flexible, we are going that route for all our projects.
Thanks for explaining and glad to hear about phasing out the bid bot service. That's the sort of thing that gives me confidence in our chain. 💪
The peg breaks when the market cap of SBD exceeds 10% of the total market cap of STEEM. It's the fault of the low price of STEEM.
Yes, it's kind of like this.
The basic concept here is that the amount of SBD in circulation must be able to pay 10% of the value of circulating STEEM. If the system detects that this is not possible, the system stops printing sbd until the market self-correct due to changes in supply/demand ratio.