Why would you want to bring the SBD price back down? I don’t understand. Isn’t it better that it has way more value now and so, when your content is rewarded you are actually making more money?
Why would you want to bring the SBD price back down? I don’t understand. Isn’t it better that it has way more value now and so, when your content is rewarded you are actually making more money?
I would rather the volatility be in the SBD since it is not tied to curation or the awarding of overall token liquidity.
One of the objections made against cryptos is that the price volatility makes them unsuitable for regular commerce. The reason there are two liquid cryptos on Steem (STEEM and SBD) is so that STEEM can be the volatile one that goes to the moon, and SBD can be a more constrained crypto that is pegged to the dollar. (SBD literally stands for "Steem Backed Dollar." That's why your Steemit wallet says that SBD is worth about a dollar, even though it's obviously not.)
By design, the value of SBD is supposed to always be $1. That's laid out in the white paper. Since the design is clearly not working, this is a suggestion to improve on that design.
Pegging your SBD to the dollar would not decrease your rewards, because the amount is established in VESTS and then 50% is created in SBD instead of VESTS, based on recent price differences.
wow, there was a lot i did not know about. Thanks for the information.
But still since currenly 1 SBD is worth 14 dollar, (more less) isn't it better that way? so that people who plan on cashing out get more money for their work? on the 50% they can cash out right away? like.. lets say all the Venezuelan steemians who currently are actually making a living with the earnings from Steem it? if they used to get 1 dollar for each SBD (More less) and now can get $10 or more , isn't that better? or will this crazy rates hurt the ecosystem of Steemti?
In the short-run, crazy high rates are always better for the people receiving new crypto. In the long run, they hurt the ecosystem because they prevent adoption for use cases outside of Steemit itself.
If the SBD peg was actually working, then STEEM would be the currency that ran up in price instead. Whenever SBD tried to run up, more SBD would be created and rewarded to the long-term investors. Since they are long-term investors, they could dump that SBD into the market and buy STEEM with it to power up, stabilizing SBD and causing it to be STEEM that runs up. (With the added benefit that they can live of that 'dividend' and not have to power down as frequently to meet expenses, which would also strengthen the price of STEEM).
Then rewards are calculated in STEEM: so if STEEM has a higher price than SBD, you would receive more SBD for your posts. So instead of receiving 8 SBD worth $8 each ($64 liquid value on a 50/50 post) you would receive 64 SBD worth $1 each. The same liquid value, the same outcome, with the added benefit of actually proving that a crypto price can be held stable enough for savings accounts and day-to-day business transactions.
i completely get it now.. and it makes a lot of sense. Thank you so , so much for teaching me all these. I Truly appreciate it!
but i am guessing it is bound to go back to normal , right? or is it unpredictable? is there a chance that it will remain high? because if it is remaining high.. then, a solution would also be... getting the Smeem to a higher rate?
Theoretically long-term holders who understand the peg will convert their SBD to STEEM and power up. Over time that will create downward pressure, but it's a very slow process.
That's why I suggested in this post to increase the inflation of SBD when it becomes misaligned like this, so it will speed up that process.
I see