How to Enforce the Steem Dollar Peg by Self Voting
At present there appears to be a lot of capital speculating on the possibility that Steem Dollars will rise in value. There have been several posts predicting Steem Dollars will "go to the moon" despite the fact that it is supposed to be a pegged cryptocurrency, which always returns to about $1.
The Steem Dollar peg does not enforce itself. It only provides incentives for market participants to enforce it. It's therefore up to us to enforce the peg, and it is not wrong to profit in doing so, it's how the system was designed and it's spelled out in the white paper.
The Steem Dollar speculators are essentially donating a gift to Steem Power holders. For every dollar of voting power we are supposed to have, we're getting an extra 8 or 9. My suggestion is that stakeholders dedicate the extra dollars to taking Steem off the market. Reducing the supply of liquid Steem will result in an increased price (law of supply and demand). Increased price result in increased issuance of SBD due to the consensus rules. Increased supply of SBD will over time reduce the price of SBD, until it reaches equilibrium and the other side of the peg comes into effect.
If SBD is $5, dedicate up to 4/5 of your voting power to self voting, and powering up that Steem. If SBD is $9, dedicate up to 8/9 of your voting power to self voting, and power that up etc. If this policy was generally accepted, self voting would only be the norm during periods when the peg was broken, and those periods would not last long. Despite apparent selfish behaviour, it would result in a rising price and increased power for all stakeholders to allocate SBD.
Fixing the peg would also give the market confidence that we can reign in an overheated SBD and return it to stability.
The whole site can just be...
This is my post to upvote myself on...
In a few cases it feels like that already. There is no doubt the SBDs are a huge influx of wealth to Steemians and many of them are powering it up.
If you make good content and you believe in sharing your voting power with the site you should also value your own contributions and upvote yourself. Use it sparingly and if jumping on someones post don't forget to up-vote what you comment on. or not, who gives a sshhh it's all going to go out with a bang anyway. You think the IMF wants the cyber world creating its own money from thin air without their being some real world consequences? this is a new era. Expect the unexpected.
I think a big reason for the demand for SBD is from speculators that are hoping to profit from the ever increasing number of bid bots. As more of these bots accept STEEM This may feminist demand for SBD.
Regardless of the reason I am really enjoying the opportunity to increase my SP even more.
I am changing my SBD to Steem as soon I get the payout. The difference is getting smaller so why wait and keep SBD
Good point. I was doing it daily but haven't been keeping up due to the holidays. I better get on it.
The chess that can be played by stakeholders against the speculators is quite fascinating.
I actually bought some Steem already with the SBD so high. Great way to get some extra SP :D
I love to upvote myself, but i don't most of the time. I guess am lazy about it.😁
I understand the theory @demotruck, and I do like the idea (surprise!), but I have some delegation from @fulltimegeek to consider and so I'm not sure how he would feel about it :)
Merry Christmas to you!
I am self voting my posts and I do not think the peg can be enforced. It's in one of "Ned's Colored Papers" specifically stating that a runaway sbd will not be of concern.
I believe the run up is because sbd is the rare coin - only created by the fine bloggers of this platform, dtube, zapple etc. Soon porn, and tokens will also drive sbd creation which may be a game changer as pervs have a lot of money to burn. Tokens? I have no idea.My crypto knowledge is basically none.
I do not know where sbd will land, but for now, I'm taking my 50/50 and creating content out the ying yang to generate as much of this rare coin as I can get.
I learned about rare coins in pokemon - my son's childhood and current fav, and the only game I have ever played. You can trust my advice 100%.
pokemon = reality
Nice advice, I'm not a pokemon player but I think you know what your talking about and those pokemon "nerdy types" ;) never seem to go wrong in strategies for success!
'Pervs have a lot of money to burn'..... I might have to have a go at operationalizing both of those terms: 'pervs' and 'burn' to see if I can actually verify that claim!
Let me know your results! I only have this info anecdotally.
Thanks for the info. Where do you think the SBD's are going? I am a photographer with a a large following elsewhere (Instagram etc) and I must say that the high SBD was one of the reasons for bringing my content to the platform. It would be nice to have a platform where creators were paid well for their work . To me that is the dream of Steem. The trending pages at the moment seem to be failing that to some extent however with the quality of the content. Time will tell I guess where it ends up.
The price of SBD will go down but more will be given out each day.
This is a rather indirect inference you are making. I agree though: the higher the market value of steem, the higher the SBD payouts/ SBD generation. But you can't destroy STEEM, you can only lock it into SP (isn't that right?)
I don't think self voting matters, and is orthogonal to the main point you are also suggesting: take the SBD earnings and buy STEEM. It's seriously a steal when SBD is high, for the reason you mention. And the incentive really is for people like us to do this purchase. This will cause upward price pressure for steem and have the benefits you mention.
If you get the SBD speculators to realize this then we all win (seriously, how many of them are there??? It's pretty ridiculous).
One last point: there is a natural downward pressure on SBD simply by virtue of daily SBD printing. No there's no immediate tools to maintain the peg, but it will go down in the long term, not up. I don't know why people think it will go up / blow up a la Bitcoin. Silly people.
You can destroy Steem by sending it to @null, but doing so removes it from the market cap entirely which means that it increases SBD issuance slightly less (I think it would be marginal though).
Although SBD is printed very little compared to other cryptos and compared to the market cap of Steem. In order to maintain stability we'd need to ensure that supply increases when SBD goes higher, and the only way to do that is to make the excess purchasing power go towards powering up or burning Steem.
Ah okay. Yeah sending to null seems to be silly :). Powering up makes more sense no matter how you slice it.
And I guess powering up does count as removing steem. I wonder if the market has that information for investors or if they display amount of both SP and STEEM hmm.
About the printing rate, that is true but I think that's just the general crypto craziness atmosphere talking. In the long run, it's likely all of them will drop (without any other fundamentals holding it up). Could be wrong of course...
Investors can see how much liquid and vested Steem there is at any time by checking steemd.com. It's among the figures on the sidebar.