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RE: SBD'S PEG IS BROKEN: ARE NEGATIVE RATES AN OPTION?
Positive interest rates will increase the tokens in circulation. Another thing that will decrease the tokens in circulation is using the CONVERT button I believe. Where would the extra SBD come from and who would sell them? You can't just create more SBD tokens out of nowhere. And if we decide to burn STEEM from the reward pool to create SBD tokens instead, then people will get less rewards.
I explained the whole idea in my post, and provided a link in my previous comment. In summary:
Generate new SBD tokens at a rate determined by the market premium and grant it to VEST (SP) holders as a dividend. The new tokens are not given to SBD holders, but VEST holders, so it increases supply of SBD without increasing demand for SBD.
That would incentivise holding SP. Not a bad idea I guess :)
Yes, exactly. Reward long-term HODLers by generating more SBD that they can sell to speculation traders that don't even know SBD is supposed to be pegged to the dollar.