You are viewing a single comment's thread from:
RE: A reversed conversion to peg the SBD to $1 is a bad idea.
People are free to exchange their SBD and steem anyhow they like on 3rd party markets. But if this were to be implemented within the blockchain itself where the source of token printing originates, It will create problems exactly described in the whitepaper.
The only price that matters is the STEEM token. period. SBD is essntially a smart contract that reacts to the market through a witness maintained feed price.
It doesnt matter that SBD is worth more than $1 in the outside market. That just means that the value of SBD is manipulated by traders who don't understand what it is. SBD will always worth $1 in the blockchain and that is the end of it.
trying to tinker too much on the conversion might spoil everything.
I like your explanation on this and sounds correct. So in theory we don't really want SBD listed on the exchanges just Steem.
In theory SBD should be listed as a pegged token just like USDT. No point trading SBD when it will always worth $1 of Steem. But since it's a liquid token, traders will always want to make use of volatility.