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RE: Do Your Part to Restore the SteemDollar Parity.
Ok, a couple of things in response to this post:
- The parity is maintained by collateral in the form of steem, what this means is that 1 SBD will always be worth 1 dollar worth of steem. This alone should stop SBD price from falling too much, if people are selling there should be others buying cheap and converting.
- You are right about the witnesses price feed, they should be providing an accurate price in order for the system to work, I believe that most witnesses are but if they are not you and the rest of the community should vote them out.
- The interest rate is at a 10% which is an agreed numbers between the founders and all the witnesses, you can´t simply change this because SBD is trading at 90 cents... this is something that should be discussed and voted upon.
Regards!
(1) yes, the "1usd worth of STEEM" is just a means to give confidence to the people, but i believe the ultimate goal of the SBD is to have a parity with $USD, as descript in White Paper(pg15)
hence, when "1usd worth of STEEM" is not enough the derived the desire 1:1 peg, witnesses should try to gradually increase the amount of collateral, until a new balances is found.
(3) as mention in the post, this is the Impossible-Trinity problem.
If our priority is to have a fixed exchange rate, then we shouldn't stand still with the fixed monetary policy (interest rate)... if we want more control on the interest rate, then we will never had a stable SBD.
Totally agree with your point that the interest rate should be discussed and vote. but this should be done periodically, and adjusted from time to time according to the market environment... When is the last time they have a meeting or discussion?
I think the collateral and a 10% APR should be enough to hold the peg, the reason you see a price below 1 dollar now is because of a downtrend that keeps the exchanges price below the 7 day average shown on steemd, if or when price of steem stabilizes or increaes then you will see SBD at 1 dollar or above... I personally dont think we should assume that the SBD will be 1 exact dollar always, it will most likely vary from 0.80 to 1.20...
SBD has been alive for exactly 1 month today.. it has been below 1 dollar and it has been well above it too, so in my opinion is too soon to be thinking of changing the interest rate.
Furthermore, i believe that the voting system here is to allow individual witness to publish their own figure of interest rate, (the 10% is just a default value which could be change anytime) just like the way they publish Steem/SBD price feed... this is the central spirit of cryptocurrency, i.e. decentralization, anti-collusion.
then the system will choose the median value from the sample. Correct me if i'm wrong.