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.
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