Why are you earning STEEM reward now and why is it extremely bad for steem economy
Okay, guys, I am a strong proponent of SBD to USD peg. Strongly pegged token with fast and cheap transfer is a much need in whole crypto economy.
The only reason we have no peg right now is that we can't print SBD fast enough to meet sudden transactional demand. We could achieve it by two means:
- market, when part of SBD are kept mid-term in order to sell them into increasing demand
- by-code, when platform start to generate more SBD as demand for them grows.
Only today I found out (thanks to this post) that when SBD mass grows "too high" (2%+ of nominal STEEM mass converted into usd by price feed) printing of SBD is slowing down. Part of the SBD reward printed in liquid STEEM tokens to be precise.
Frankly, I dont get the point. What's wrong with large portion of SBD mass compared to STEEM? Why we should prevent market mechanism to restore the peg if it is broken?
Please, someone, clarify.
To STEEM token SBD is some kind of debt obligations. Maybe this is the point here.
Well, I think I get it.
Okay, then upper treshold of 5% should be in place if we expect STEEM price to fall 20 times. Still too severe condition.
I think it's a matter of market stability with respect to conversion events, which destroy SBD in place of STEEM. In the event that conversion price is favorable compared to market, this would cause a significant amount of conversions to occur.
The ratio is a representation of the worst case scenario for when all SBD is converted and starts to flood the steem supply. I think we can agree that if too much gets converted at once, this will not be good for the economy.
I can't say how much is bad, but 5% sounds like it could be moved up a notch. Note that at 10% something else happens (price feed goes off peg and conversions give you less)
This also hinges on SBD price going below the price in which conversions start becoming better than market (1 USD). So yeah...
Yes, it is!)
Sorry, some problems with the internet connection make me do this.
"So you still need an explanation of the SBD? So OK, here it is."
Ha. nice!
well thats question is also in my mind now a days cause its actually not worthy to have steem now adays really a bad thanks for sloving my confusion through this post sir!
To me, I feel its just to relieve us of the stress of going through blockchain before SBD can be exchanged to Steem. My thoughts though. But no matter what happen, Positivity and Optimism should be key on our minds at a time like this
Wow ! Thanks for making such a great analysis on sbd into dollars. I learn one or two things from it. Nice write up with powerful message embedded.
hello @bronevik.
I wonder
why blocktrades we can not open already 4 hours this.
Is there something wrong ?
good question.I also want to know it