SBD Rewards Are Back - Another Consequence Of HardFork 20

in steemit •  9 months ago 

One of the new rules of HF 20 is that SBD printing constraints are changing.

Until now, SBD was printing if debt to ownership ratio was between 2 and 5 percent, using the following algorithm:

  • if the debt to ownership ratio was under 2%, printing rate was 100% SBD
  • if the debt to ownership ratio was over 5%, printing rate was 0% SBD
  • if it was between 2 and 5, the printing rate was: 100% * ( 5 - debt)/3

So we could consider 2% being 100% SBD printing and 5% being 0% SBD printing, and everything in between a ratio, e.g. 3.5% debt meant 50% SBD / 50% STEEM.

Now, the limits are 9 and 10 percentage.

So, until debt to ownership ratio will reach 9%, SBD printing rate will be 100% (liquid rewards will be paid only in SBD). If the debt to ownership ration will be between 9% and 10%, SBD printing rate will decrease linearly, and if it' above 10% it stops completely.

So we can consider 9% being 100% SBD printing and 10% being 0% printing and everything in between a ratio, e.g, 9.5% debt to ownership means 50% SBD / 50% STEEM.

Here are the HFF 20 release notes relevant to this change:

The Steem Blockchain has some rules in place to encourage healthy market dynamics for SBD. Those are being tweaked to attempt to keep SBD on the peg more often. SBD will slow printing linearly starting at 9% of the market cap (instead of 2%) and stop entirely at 10% (Instead of 5%).

In my opinion, this will lead to a snappier reaction of prices if SBD will lose the peg again. And obviously it will make this event a bit more difficult to happen.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


Dragos Roua


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It looks like it's at about 6% now.
http://www.steemreports.com/steem-sbd-info/

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don't know exactly but it's under 9%

No SBD to the moon I guess :(

hey thank you for updating your site with the mana display and all you do on the blockchain.

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Always a pleasure :)

if it keeps trading, we could see sbd breaking the peg when the bull run began. just 3 days to go. Let us see what the SEc brings for us. if they will be made the decision purely on the comment, there will be a positive news for us.

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Hey, @abdulmanan.

So, what's happening in three days with STEEM and the SEC? Or is this something for crypto in general. We could all stand to have some good news, I think, especially in the way of prices.

This is interesting. I will be sure to read this over and over again so as to understand it well. Thanks for the various updates and information. Don't know what I would have done or known without it all.

Thanks for the update...
I was wondering latter today about the sbd payouts...

Posted using Partiko Android

Thanks for the update...
I was wondering latter today about the sbd payouts...

Posted using Partiko Android

Did it pegged?
-- NOPE
Will it pegged?
-- NOPE
We have like ~500 active dApps how many of them believe it's going to be pegged and charges with SBD ?
-- Say what?

Let's unite to get into debt again. \m/ Like we don't have enough confusing variables. Let's charge with mana not the rc one other one.

Thanks for the info.

Hey, @dragosroua.

I don't know if it's accurate or not, but a day or so before the hard fork, so Sunday to Monday, SBD Debt Ratio was well over 6%. It's now showing at 5.7%. Most of that happened before the hard fork, though. It's basically stopped since.

I'm sure there will be some happy folks because SBDs are back in the payout equation. I'm just happy to get earnings in any form. Not sure how happy people will be when STEEM takes off while the SBD hangs near the peg, since they're looking for that extra conversion boost. But then SBD amounts will go up in rewards received so they should factor that in, too.