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RE: No, It's Not More Profitable To Go 100% Power Up Once SBD Is At Parity With STEEM
Please keep in mind that SBD was designed to be at $1 and what the markets are doing right now is pretty much an anomaly from the Steem governance point of view (but something very real from the point of view of the market, who is always right).
And the witnesses that don't work to get SBD back to $1 shouldn't be given votes. And witnesses that have bid bots should not be witnesses.
But, I'm just a little minnow.
It’s not the witnesses job to keep sbd at $1. The market determines the price. You need to remember a lot of the sbd is on the exchanges where buyers and sellers determine the price.
I dare to disagree. I think witnesses should do whatever they can to keep the system balanced and in good order. In this specific case, because SBD is a debt based asset, a significant imbalance in it - as natural as it would be, being established by the markets - will dramatically affect the entire economics of Steemit and the value of STEEM.
As @deanlogic pointed out, it's ok to have a gazillion other assets on top of the blockchain, each with its own inflation and rewards pool, as long as they're not debt-based, like SBD. I would say the SBD design is a legacy flaw that must be carried over, somehow.
Maybe I’m Missing something, but I’m
Not sure how the witnesses could manipulate the price to counteract market movement. I understand it’s a debt based token but once it’s on the market how can they control the prices?
They can't control the price, they control the supply. A basic market rule says that if supply is big, price is small and viceversa (this is not always true, btw, but most of the time it is). That's the only way witnesses can "control" SBD. If you look at what I wrote it's about keeping the system balanced and in good order. Not about controlling it. Delegated Proof of Stake is a very peculiar governance system...
I'm OK with SBD as high as it can go. I agree with the bid bots.
STEEM can go as high as it can go.
SBD going high as it goes defeats the purpose, so we should only reward out in STEEM and Steem POWER. Then SMTs can take over for SBD.
So, that just reduces the chances of new members getting any significant rewards, at least with SBD prices high new members get some more, at $1.00 income would go down which would just mean even less people staying with Steemit after a couple of weeks. So which would be better keeping the initial purpose or having Steemit grow?
To keep the initial purpose. It would make STEEM more valuable and less prone to price manipulation.
So, if the initial purpose is wrong Steemit still has to keep it? Change moves everything if you close your eyes to it, then you get nowhere.
The initial purpose was not wrong. Witnesses failed to keep SBD to what is was supposed to be. And, I believe, a few of the whales on Steem used this flaw to manipulate the price. When the price goes up, there are less rewards for the minnows because the bigger fish post and upvote more.
Just because people are looking for short-term gains at the price of the long-term health of the system, doesn't make them correct, it makes them near-sighted.
Truth be told, most minnows including will want the SBD to go as high as it can get. That is more reward at least at the initial stage and help many of us who want to build the real thing - steem and steem power.
I remember I can get as high 3.5 SP with one and reward I get. I am knowing the worth of that now that I get 1 SP for 1 SBD at most.
So I say...SBD to the ceiling first, then Steem to the moon.
STEEM will never go To The Moon as long as SBD is allowed to be manipulated and be higher.
If SBD stayed at $1 and people chose Full Power as supporting the system, then the STEEM price would increase, since it takes longer to get the STEEM out. The best way to earn more rewards is to have more Steem POWER directly. By cashing out on SBD, because it went to $14, people are not improving their minnow status or keeping Steem healthy. No system works well with high amounts of debt.
On a side note, "To The Moon" for STEEM/SBD isn't going to be like BitCoin.
I get you...but every minnow's motivation at first is making some money. He gets frustrated if his effort is not yielding any.
After the person has been fully initiated into the system, then he starts thinking of building some power.
I guess I am selfishly thinking from a minnow's perspectie or my own perspective. Steem is the real deal but Steem Power grows faster with a good SBD to steem/sp ratio.