Steem/US Dollar (STEEM/USD) Price Charts for Aug 14th 2017
| The value of Steem for today is $1.08807602 . It has a current circulating supply of 239 Million coins and a total volume exchanged of $1,392,427.0 . Market Cap $260,492,599.1 |
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Hi @majes. Would you be able to give me a "for dummies" explanation of what the purpose is of Steem Dollars (SBD)? I can't work out what their purpose is. Why don't we just use steem as the internal token?
Hiya, the SBD is meant to be pegged to the USD, worth "about" 1 USD worth of Steem. It was intended to be an stable asset with a varying interest rate.
It has been debated whether we should keep or do away with the SBD as it can be confusing to new members. But the SBD allows us to have a unit of exchange that is stable and should be much easier for outside projects than Steem itself. At least in the beginning anyway as Steem started with a 100% annual inflation rate.
Steem's inflation rate has since be drasticly lowered and will continue to drop until we reach approximately 10%. But it will always inflate so we never have to have transaction fees.
The SBD started trading at a premium much to the surprise of many on the platform and became problem for exchanges in general as many experienced a "run on the bank", so to speak. The Steem Witnesses have two adjustments at their disposal to help maintain this 1 USD peg. Interest Rate and Bias.
It is very much experimental as is Steem itself and very intersting to keep and eye on as every Steemit Member has an option to be paid 50% Steem Power and 50% SBD..
Hope that helps :)
Thanks for that. What's the "bias" that you mention?