Steem experiment: Burn post #22

erodedthoughts (66) 6 years ago

Why not burn the SBD to the promote option right away in place of arming more users with liquid steem/SBD. Selling them on the internal market doesn't do much good as it can still then be transferred and pumped on the open market. Using the post promote right away destroys that ability.

burnpost (82) 6 years ago

Reducing the supply of SBD contributes to increasing its price. The primary limiting factor on the price of SBD is its steady increase in supply. There is a good explanation of the process here

erodedthoughts (66) 6 years ago

That is a very cool post about how steem dollars are bad and how they are made but the issue with what you are doing is they are not being destroyed. They are being purchased in large quantities by users and held. Do you think those will just magically not be sold on the open market if say something like SBD was added to Binance in the next month or when they go up on any of the other exchanges when BTC corrects itself?

Here is an example of just one account taking full use of your BURN project.
Screenshot-2018-2-7 freedom.png
And this is just one days worth of purchases from one user, who like yourself makes a very nice living off of renting delegated steem power. So I ask again why are all of the earned SBD's not being burned directly to the promote option built in on the steemit platform?
Screenshot-2018-2-7 freedom(1).png

erodedthoughts (66) 6 years ago (edited)

Is there some hidden way these are being burned or am I missing something? I see you're a witness so maybe there is a way that you know of that does this. I was under the impression that only swapping against the peg or sending to the promote feature "destroyed" SBD's.

It just looks like you're selling to whoever wants to buy the SBD's on the internal market while making another high SP account. It is just misleading the way the post is written and you leave a lot of down the road options for the account left open.
Edit:
I have heard from others that know you that this is legit. So, I guess it is good to try out. I just don't understand how it will help anything under the current experiment parameters. I do hope it works out for the benefit of the community, sorry if it looked accusing, just doesn't read right as it's written.

smooth (70) 6 years ago (edited)

The goal here is not to destroy the SBD. To help restore the peg to $1 where it belongs requires more SBD in circulation not less. What is done here is to trade the SBD rewards for STEEM (which puts the SBD into circulation; see previous sentence) and then burn the resulting STEEM, returning that portion of the reward pool to STEEM holders as a marginal price increase.

In the current rules, the STEEM is powered up and used only for delegating to anti-abuse/anti-spam initiatives) until such time as SBD returns to $1, and then it will be powered down and burned.

making another high SP account

As stated above this account has very strict rules for how it will be used:

Non-voting except delegation to anti-abuse (currently anti-spam) efforts
Other than #1, the STEEM/SP is not used in any way. No SP/STEEM will be transferred out of the account ever.
SP will be powered down and resulting STEEM burned when the SBD price goal (SBD=$1) is met.

The rules are described precisely in the linked post. Please let me know if something is still unclear.

$0.51

2 votes

erodedthoughts (66) 6 years ago

I don't know man, I am putting my trust in you on this.

To me XRP is a great example of what too much of a coin or token worth nothing can do on the open market with no value or use to the public.

My gut feeling is and is why I said something is:
The more SBD's in circulation the more bidbot votes can made and the higher those votes can in turn be with increased SP value.

$0.22

2 votes

smooth (70) 6 years ago (edited)

I appreciate your trust but it isn't necessary for you to put your trust in me on this particular initiative. If you don't like the idea or it doesn't make sense to you then you should not support it. We have a voting system because people may see things differently and reach different conclusions about what uses for rewards are worthy of support. Your votes are yours to use as you see fit. Thank you for the feedback.

$0.00

slyde (48) 6 years ago

Well said mate...

But what does Burnt Post does to the reward pool and is it something for the Steemit gods(Big Fishes)...Sorry to berge in on you on this cos i have been asking people to explain but with no success.

$0.00