One thing that I would like to understand better is the the creation of SBD and how the reward steem get converted to it. That to me is a bit of a detail that would be worth explaining.
When you are rewarded with let's say 30 SBD and the price of Steem is let's say $1 this means you received 30 Steem in the form of SBD. (It also means 30 Steem has been created in the form of SBD)
Now if the price of Steem goes down to $0.50 and you still holds the SBD you can now redeem 60 Steem through the process called "convert" located in the wallet. This process takes 3.5 days and the amount of Steem you will receive is based on the median price set by the Steem witness during those 3.5 days. On the other hand if the price of Steem goes up to $2 you can only redeem around 15 Steem for your 30 SBD.
Yep this is a good explanation. So the steem from the block reward get converted into SBD and then destroyed? Or instead of steem reward part of block reward is sbd?
If the pool owes you a 30$ liquid payout it will give you 30 SBD and not 30$ worth of Steem. The Steem never gets created or rather they are created in the form of SBD. And when someone covert SBD to Steem then the SBD get's destroyed and change into Steem.
I'm glad you liked it @knircky!
One thing that I would like to understand better is the the creation of SBD and how the reward steem get converted to it. That to me is a bit of a detail that would be worth explaining.
When you are rewarded with let's say 30 SBD and the price of Steem is let's say $1 this means you received 30 Steem in the form of SBD. (It also means 30 Steem has been created in the form of SBD)
Now if the price of Steem goes down to $0.50 and you still holds the SBD you can now redeem 60 Steem through the process called "convert" located in the wallet. This process takes 3.5 days and the amount of Steem you will receive is based on the median price set by the Steem witness during those 3.5 days. On the other hand if the price of Steem goes up to $2 you can only redeem around 15 Steem for your 30 SBD.
Yep this is a good explanation. So the steem from the block reward get converted into SBD and then destroyed? Or instead of steem reward part of block reward is sbd?
If the pool owes you a 30$ liquid payout it will give you 30 SBD and not 30$ worth of Steem. The Steem never gets created or rather they are created in the form of SBD. And when someone covert SBD to Steem then the SBD get's destroyed and change into Steem.