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RE: HOT: Steemit just got Updated!!
Very excited :)
Does anyone know where the promoted SBDs go? I would be interested to know if they are just getting burned up (which would be a huge value for the Steemit community) or if the proceeds are going to someone's account.
[Edit] I just tried it out and saw they get burned. Awesome!!!
I think they get burned, which is even more fantastic, it stabilizes SBD, big time.
Now the 1$ peg can easily be respected, and the added utility of SBD will also add more volume to it probably.
For sure. I could see SBD even going above $1 now. There is a fixed supply, and now a huge demand :)
Well not necessarly, because people also do cashout SBD sometimes, but it would be nice if the 1$ peg is at least sustained. SBD should not be a speculative instrument, for that we have STEEM, SBD should be stable, and I think the devs are doing a good job to maintain this.
The last part of the description says
"the funds are "burned". When funds are burned they become a dividend for share holders"
Noticed that burned is put in quotes and that it says the funds go to share holders. So they are not truly burned in the sense that they disappear forever. They go into the accounts of share holders. If this is so, it won't stabilize SBD.
I may be misinterpreting this, so correct me if I'm wrong please.
I have no idea, I have to look more into this, I am still researching this new feature.
But even if that is so, it would still decrease the money velocity of SBD, which would stabilize it's value somewhat.
Agreed, it would have an effect on the money velocity of SBD.
Yes, and not just that, it gives utility to SBD, so we could see an increase of traded volume of it. Which would stabilize the price. I am excited about this feature!
After researching a little bit more, yes they do get burned, they go to @null, which is a special account that nobody has control over. And then later they will be removed with a hardfork.
So the value remains in the community but the coin is burned, decreasing the supply and raising the value.