RE: Burnpost update for SBD at 1 USD and accompanying rule improvements
Hey @smooth, I love what you're doing with @burnpost and though I haven't been voting it very often (I've chosen instead to positively reward others' content), I'd like to thank you for any impact this experiment may have had on SBD's fall to $1. This will be good for the platform in the long run and I hope it stays this way.
I have one question regarding the "rules" here. Why use the conversion transaction when the SBD price is below $1? Here's my understanding:
- Exerting downward pressure on SBD market price is good for everyone, even if it is at $1, because it creates incentive for people (even outsiders to STEEM) to purchase SBD, bringing money into our economy.
- Burning STEEM is also good for everyone, since it decreases the supply which should create an upward force on the STEEM price.
Now, I understand that on a large scale, the net effect of this difference is minimal, since STEEM is eventually being burnt either way, and it is irrational not to convert SBD below $1. However, the way things are, @burnpost does not act as a constant downward force on SBD; in fact, I think it starts acting as an upward force once it starts using the conversion transaction, since it is decreasing the total supply of SBD.
In general, I feel that since we are lacking a good downward pegging force, especially given the history of irrational valuation, I think we should be focusing on exerting as much pressure in that direction as possible, even below $1. I'd love to hear your thoughts on this.