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RE: Conversion Does Dot Follow The SBD Design
You did not need to do this experiment. The peg to 1 USD is only supported if the debt ratio is below 10% of the virtual supply. If the debt ratio exceeds 10% then the haircut rule is enforced.
Thank you for the link to this good explanation.
Current supply: 7,456,172 SBD (steemd.com)
Virtual supply: 328,833,197 STEEM (steemd.com)
STEEM price: $0.138619 USD (coinmarketcap.com)
The debt ratio:
7,456,172 / ( 328,833,197 x 0.138619 ) = 0.163575
The debt ratio is 16.36%. Is my calculation right?
Is there still a mechanism to keep SBD price near to $1 USD when the dept ratio is over 10%?
The existence of SBD is pointless if the regulation works only in a stable or bull market.