SBD interest: Where does it come from?
Recently we have been seeing a tiny APR for our beloved SBDs. One of the things I would like to understand is where this APR is coming from. Does the blockchain simply hand the APR to the SBD holders, and thus create the money out of thin air or does the APR come out of the block reward that would otherwise go somewhere else?
It is essentially created out of thin air as you put it. The additional SBD is not taken out of any of the other funds that are set at the blockchain level (author/curator rewards, SP interest, and witness payments).
Cool. I like this.
So this is actually creating a little bit of inflation somehow then. Interesting. I have to think about how this will affect the economy. I still think that SBD is about the best pegged crypto out there, although its market cap is too small to really be useful.
I still would love your original idea of allowing to create SBD for a premium so the supply could be increased if there is demand. Together with an interest rate this could actually solve the stable currency demand of the space.
interesting topic . i resteem it
Now that was something i was trying to find out and looks like i got the answer in comment section thank for this post :)
I was wondering this to glad you got the answer. Also thanks for upvoting my post!
You can find a comprehensive description of the steem/SDB eco system in the steemit whitepaper which can be found for download on in the hamburger menue in the right corner of your steemit desktop.
However, I did not read and understand the entire information about it all.
In the right column of the steemd.com you can find the current number of existing SBD, which amounts 3,549,392.220 SBD at the moment.
I think this number can vary into both directions.
Good luck!
By the way: Thanks for questioning this.
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Good question
I also wait for answer
Thanks for sharing
Thanks also for your great support
Wish you a great and sunny day
Maybe from some sort of Steemit alchemy that it comes out of thin air.
I didn't even notice this. Thanks for pointing it out.
This is a very insight full question
I was trying to do a little research on the topic a while ago but I was left with even more questions at the end of the day
https://steemit.com/steemdollars/@tojukaka/steem-backed-dollars-sbd