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RE: Do Your Part For Steem, Destroy The Debt!!
I have no clue about this debt ratio (is it total SBD divided by total STEEM?), witness' bias, and how SBD conversion to STEEM worked or works now.
If it incurred losses on users, it means that eliminating it from wallet's interface was the just thing to do.
Why let people use an interface full of landmines?
I started with 3 owned STEEM.
Organic upvotes helped me, but the majority of what I made came from bidbotry.
Well the DEBT RATIO is as important and should be updated as much as price feed as it effects the economic workings of the site adn was designed this way
you can see here the current BIAS% (How much extra SBD is printed) by witnesses
if SBD goes over $1 top witnesses should adjust bias to print more and keep system stable
the interface wasn't the problem, the problem was top 20 witnesses decided not to enforce SBD BIAS to print more to keep price stable when SBD moved past $1.
But if more SBD were to be printed then, would not the debt problem that we have now been much worse?
no because the onsite conversion would not have been removed and users would be incentivised to use as you make more STEEM
How do STEEM's debt ratio, feed and bias work?
I thought that every SBD is created instead of a 1$ worth of STEEM.
If STEEM's price goes down, then 1SBD is worth more STEEM.
If STEEM gets low enough, then conversion to it may breach its annual inflation rate, and hence the SBD "haircut"?
And is this why the $ peg was already breached downwards in the past?
If so, what made it breach the peg upwards as much as it did, and what prevents it from breaching the peg downwards now?
Why is the debt ratio situation now not better than prior to HF20?
Did not the failed transition lower the debt ratio?
I'm also flagging for bid bot aduse. @steemflagrewards
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STEEM price is irrelevant to price conversion mechanics
you will always be getting $1 amount of STEEM from votes
if the SBD price is LOWER than $1 you will receive more STEEM
either by CONVERTING or POWERING UP POSTS
the price is found between SBD and $1
PEG was broken because of changes in HF19
witnesses could have easily enforced SBD printing rules by adjusting their BIAS (SBD printing rate)
the reason it wasnt enforced was to farm rewards and dump on markets
the DEBT situation is worse not better now after HF20
no DEBT RATIO is higher now than before and continues to rise
Then what is the SBD haircut that you previously wrote about?
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i was talking in the sense that the system "rules" worked as claimed
I thought that you complained "that the system "rules"" did not work "as claimed".
I remember to have heard or read dan claim that the peg was meant only to prevent declines below 1$, not ascends above it.
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You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!
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You got a 100.00% upvote from @sleeplesswhale courtesy of @stimialiti!
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