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RE: I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.)
LOL. Good questions!
However, imagine how whales of Nubits feel now that the per unit value is 0.44 Usd. Some of the owners of the Steem Dollar are not responsible for this problem. If I can just convince high schoolers here to start blogging, I bet I can buy Steem Dollars for one peso each.
NuBits promises a value of $1 and it hasn't delivered. SBD doesn't really promise that any more (since I think it was HF14), it promises a peg price that is conditional on the value of STEEM. If STEEM's market cap isn't enough to support the amount of SBD that exists, SBD holders are explicitly taking price risk. If they don't like that they should exit SBD. I find SBD's promises to be a lot more honest and reasonable than most of the other pegged coins which don't make explicit when they will no longer sustain a fixed price.
NuBits didn't have another coin to shit on. I agree with you that SBDs can be printed indefinitely. It just results in downwards pressure on STEEM. I have no issue with anyone at Upbit or elsewhere buying SBDs over a dollar if they're just using it as a fast trade. The peg is really only maintained to the downside as long as STEEM's ability to trade over $0 remains.
That's not correct. NuBits has NuShares which is the staking token and much of the backing for NuBits, much like STEEM/SP (though there are also important differences).
If the alternative were printing nothing, then I would agree. But it is not, so I don't. The alternative is printing STEEM to pay rewards. Instead of some of the SBD being used to buy STEEM and power up (which channels the overvaluation of SBD into the STEEM price through added buying power), some of the printed STEEM is sold, resulting in downward pressure on the STEEM price.
Not printing SBD (and instead printing STEEM) when SBD is overvalued is pretty clearly a negative for STEEM. More selling of STEEM, less buying of STEEM, less/no 'bonus' buying power for STEEM due to the SBD overvaluation. There is no advantage to it, except to SBD speculators. Steem itself pays the price to enrich them. That's a foolish course of action for Steem stakeholders.
I see, I didn't look into nubits too much, just thought their dumb bot attempted to buy things, and I assumed it was with more nubits, which just seemed idiotic. That sounds about as dumb as I first assumed though.
I mean, people are going to prefer whatever benefits them, and I don't have a large stake in steem so...