Does Anybody Know Why I'm A Billionaire According to Steemit.com + What is SBD
I just logged into figure out that I've become a billionaire. It was a Steemit.com front end bug. I don't know what exactly happened. But the numbers looked great:
It's Nothing To Worry About
Other interfaces such as Busy and STEEM Hunt show the correct values and they are some of the worst values I've seen for my account.
I got the Busy screenshot later and it looks a lot worse in a matter of hours. The only major event that happened (to my knowledge) is the debt levels for SBD went over 10% and now you don'exactly get 1 USD worth STEEM per SBD. So don't try to convert your SBD. Instead just trade in the internal market and buy STEEM while it is low.
What is SBD?
I answered this question to the best of my ability on a post by @knircky and sinc I have a feeling that most people don't know much about it, I'll use the same explanation here. Please note that I'm not a programmer or a STEEM developer. So feel free to correct any mistakes.
@tcpolymath gave me the best explanation asking to think of SBD as basically just "STEEM in a box". SBD is a smart contract 5% of debt was actually changed to 10% at HF 20. Until debt is at 9% you can choose to receive half of your payout in the form of SBD. At the moment of payout, the SBD received is equal to half the worth of you payout. This is where the "STEEM in a box" come into play. When you convert your SBD to STEEM, it's like opening a loot box (or @steemmonsters booster pack) but without random elements. If you convert 5 SBD you get 5 USD worth STEEM. The existence of SBD has no effect on STEEM supply.
Instead of suddenly stop printing SBD, between 9% - 10% the SBD print rate goes down in a linear way. At 9.5% debt you get your payouts 50% SP 25% SBD 25% STEEM. After debt level hits 10% the amount of USD (worth STEEM) you get per SBD starts to go down. SBD is basically a smart contract based financial instrument than an actual currency.
The current 13,574,053 SBD supply can be converted to 31,554,338 STEEM which means you get 2.324 STEEM per SBD with STEEM priced at 43 cents. If STEEM fall a lot more in price, not giving 1 USD worth STEEM per SBD will keep everything afloat.
Things Could Have Been A Lot Worse
Ethereum started off with loosing millions of dollars and having a Hard Fork and Bitcoin community is still full of drama and XRP really doesn't even have much of a reason to exist. We just had an front end bug. So stay chill.
Yep, here's why
https://steemit.com/steem/@smooth/why-account-values-and-a-few-other-things-are-messed-up
Thanks for sharing the link. It was helpful. STEEM was supposed to go over $1 like any other crypto. STEEM could even go to $1000 Only SBD was thought of as the $1 coin. It's technically not a peg but a price floor. The system only works to push its price close to $1 when it is under $1 and debt level is under 10%
SBD was dreamed up in a time when STEEM was thought it would get up to pennies.
Thus, the price difference puts in a ceiling for SBD, and the convert puts in a floor. But... it didn't turn out that way.
SBD was this thing designed to make a price stable payment thingy. So that people could price things on a ebay like site for SBD, as they would for US$s.
But... it never panned out. And no one expected SBDs to shoot to $15 each. Nor for STEEM to go above $1. They expected STEEM to always be much less than $1, and thus an SBD would always be traded one way. So, the conversion mechanism is broken, and is still broken. And needs heavy thoughts on fixing.
Or, we may just want to hardfork all the SBDs into STEEM and forget them.
Someone could probably do a better job with steem-tokens.
This post liked so much that I'm going to give you a big vote, a upvote of two million dollars (according to Busy.org of course).
On the other hand, if the Steem-SBD conversion option is placed in a more accessible way, the price of the SBD would never be unlinked from the dollar. Of course, that would bring a drop in the price of Steem in the short term.
You got a 96.58% upvote from @minnowvotes courtesy of @vimukthi!
Defended (19.56%)
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