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RE: Summarized Explanation for the Falling Price of Steem
As I understand it, payouts are priced in STEEM. Half of the payout is distributed in SP, and the other half is distributed in a mix of STEEM and SBD at current conversion prices. (It used to be half SP and half SBD, but that changed a while back.) I'm not sure exactly how it determines how much SBD vs. how much STEEM. Something to do with liquidity levels, I think.
So in short (all else being equal), since the payouts are priced in steem: when steem's price is high, payouts' dollar values are high and vice versa.
No, no, I understand payouts. I don't understand how the daily reward pool is generated (its size and in what currency)?
Btw, the payouts are in SBD, which is then split as 50% SP/50 % (SBD and Steem). So the lower the price of Steem, the more Steem we get per SBD (since it's price is "fixed" to the dollar). Right now 1 SBD = 4.77 Steem. Play with the calculators on http://steemdollar.com/ to understand the relationship between SBD and Steem.