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RE: Campaign to get SBD listed on Binance May 17, 2019
Thanks for the reply. I see your point about being able to trade the debt instrument, but I'm not clear on how this could influence its underlying value. My understanding was that SBD was pegged to the dollar so its value isn't subject to supply and demand.
Well... Let me inform you that SBD is not pegged. Not even the creators of Steemit can get that one right. There are mechanisms that are by design meant to stabilize price to $1 US, but it is not a pegged currency. SBD has a promissory value of $1.00 US. That is not a peg.
Keeping SBD price low is very bad for the following reasons.
Low price doesn't incentive people to create content. Imagine if your employer wanted to pay you in a special currency and went to great lengths to keep the value of that currency low. I would imagine you would not be happy working for that employer.
High SBD value over $1.00 US actually creates a discount for the STEEM system since the conversion rate is set to $1.00 worth of STEEM. Essentially we get more bang for the SBD buck and the debt is much easier to pay.