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RE: How Steemit Payouts Work - A Beginners Guide

in #steemit4 years ago (edited)

I am new to this community and this whole STEEM thing, but according to this article, I thought SBD is pegged with $1 worth of STEEM at any given time. So in theory, if STEEM value drops, the pegging system should reduce the circulation of SBD if SBD<$1 worth of STEEM (meaning I could exchange more STEEM for a single SBD)... Am I missing something here?

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SBD is always worth USD$1 - but it may get traded for a higher or lesser value. If STEEM were to drop to, say, USD$0.10, you would get 10 STEEM for every SBD.

I think you've an error in your comment. $1, not one Steem.

You are 100% correct! Fixing it.

yeah, this is what i read, but it seems SBD is not a strong pegged to STEEM (from what i see in the comments).. know if there is an exchange i could look them up?

There is also the option to convert SBD to Steem. When doing so the SBD is destroyed and taken out from the market. When performing this action DVD is valued at 1$ of Steem.

So if SBD would value 1$ on markets to this would be the way to convert it into Steem. But because of higher prices the system is currently broken to some point.

are you talking about STEEM/USD has gone up or SBD/STEEM has gone up (which i thought SBD/STEEM should be close to 1)

SBD/USD went up.
SBD/Steem should equal USD/STEEM, but that is not the case.

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