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RE: Steem Prices Rising And You - Not So Awesome (SBD, Steem, and Steemians' Wallets)
It's SBD being too common relative to the market cap of STEEM, and this is important. In your example, there's no risk of this SBD being too common, because the market cap of STEEM has increased, increasing all ceiling caps for SBD. So this is a good thing. The blockchain is willing to print more of these "debt tokens" because it is backed by a higher market cap.
So you see, the double steem situation is even better for the debt cap. More SBD ends up being printed but still it is all according to plan.
I'm more asking which situation is correct, the one in my main post, or the one here. Caveats can come later.
The main caveat is that, well, if the "correction case" is correct, SBD has an even larger downward push power when Steem rises, due to more of it being pumped out, while Steem's rising count is chained in SP.
Aha... I completely missed the part of the main post that is misleading, about "getting less SP the higher it is". The main point that was missing is that rewards start from STEEM, not from the $ amount displayed on the UI, and that is fixed and affected solely by SP and votes.
So the comment in this thread is what is correct. STEEM price doubling -> rewards doubling.