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RE: Why Trading SBD For STEEM On The Internal Market Is Fundamental During This SBD Pump
Great heads up and nice to know that witnesses are responding.
On the other hand, I'm not so sure it will do much good, and I'm even less sure about it being in our best interest to even try and keep SBD down. Apart from my thinking that it's impossible long term, I don't think a hard cap should exist on possible appreciation since I think it's much better PR to have an SBD that outperforms the USD - so much better that we guarantee it will never go lower! That's just beautiful to me. You'll find my full rationale in my recent post: A SBD-USD Hard Peg? At What Cost?
STEEM having a finite supply -> not really, the yearly inflation will go down from 9.5% to 0.5% in 0.5% yearly increments (i.e. in about 20 years) and it will stay there, so there will be a 0.5% inflation every year after the first 20.
Apart from that, I think some sort of a debt instrument (which SBD actually is) to act as a buffer to gross price manipulation is necessary. For now we have SBD and it is pegged to the USD. Maybe in the future it can be pegged to BTC or ETH, who knows. But for now, as a witness, I implement the current white paper and the current set of rules in the current hardfork.
I'm very open for a discussion about a new way to use debt instruments or other instruments to have a safer monetary environment, after SMTs are released.
I did mention built-in SP inflation, but next to the USD, for all intents and purposes, STEEM is 99.99% finite. As I said in reference, a drop in the bucket. 😉
It's not exactly a full peg. It's only pegged from falling below the USD, not from rising above. It would be a shame to see SBD hog tied to something that's only going to lose value forever. 😐 I should have also mentioned my first post on the subject in my first comment above. What is going on with SBD?
I really think SBD is perfect as is, and if the USD were to go into a free fall, and the SBD go to $100.00, that would be great. It's a great investment: guaranteed to never go below the USD, but with an uncapped upside!
yes, that I agree with :)