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RE: The STEEM DOLLAR Purge Begins : This is what we need to DO
Great to see a post from you on Steemit @buggedout!
Getting this SBD siluation fixed and have it actually pegged to 1$ really is key for Steem. What I don't understand is why they don't just apply the True USD model to SBD. A smart contract that automatically makes SBD for each dollar that is send to a bank account and the other way around. It should not be that hard to combine with the way SBD currently works and solves the problem of the peg and limited supply for as far as I understand. This would make it all adoptable for actual real life use.
This solution would introduce counter-party risk. What if the bank freezes the account? It introduces a central point of failure for the entire ecosystem.
But I agree, fixing the peg mechanism is key for the platform and is the only way to deter the speculators who have been pumping (and manipulating) the price.