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RE: QUESTION TIME | How is new SBD created and who determines how much will be made? |
AFAIK:
How is the rate of new SBD created determined and who does it? Witnesses?
Yes. Witnesses determine the payout Steem/SBD ratio.
What are the current rates of SBD creation?
More SBD than Steem, about 4:1 at the moment, I think.
Is this an attempt to bring down the prices of SBD?
Yes.
Thanks for clearing things up!
Where can I read about this, are there any posts on it or where do you get your information from?
Why they find a problem with people making more cash from Steemit?
The only problem I see is when the ratio of SBD/Steem is high and you can get 3 or 5x steem for SBD, but that's currently not the issue and they are still trying to pull the price down.
SBD's are intended to be able to purchase 1 USD worth of Steem. With Steem being around $5 USD, 1 SBD should be 0.20 STEEM.
That some investors would consider SBD's a token that has future potential for going up in value was something not considered when this platform was built.
Maybe there's some more info on timcliff blog posts :)
I know but why is that such a problem for Steemit that we needed urgent intervention and attempts to bring the price down?
I don't see any negatives in it, except what I have mentioned. Only positive as everyone is making more than they ever were + it's creating a huge buying pressure on STEEM in end increasing it's price.