I was referred by @sames to this post. Thanks for the explanation. I personally think the witnesses shot themselves in the foot by the price feed bias they created. The best way to deal with a market is to leave it alone. SBD had bigger gains than STEEM.
At best SBD will go sideways. I think it's more likely to see $10 SBD than $1 SBD.
This is a common misconception, but the biases that some witnesses have set have never taken effect. The effective price feed is the median feed price of the top 12 witnesses, and they all set to market price of steem. The system is designed to print more SBD the higher the price feed is as well, so in the long term I actually think 1$ SBD is the future (there are probably going to be some pumps before that settles though).
Having a peg is a useful property, if reliable. So I can see why witnesses are in a hurry to do it. But it has to be done responsibly.... It's a tricky situation.
I thought it was the top 20 witnesses. Thanks for clearing that up.
Ack. I don't have my numbers straight. My old post even said 21 witnesses. But even then, the median would still have been market price unless I am missing something.