Where do you think Steem goes near term? And will SBD be able to hold the peg if there is a correction in the altcoin markets?
Where do you think Steem goes near term? And will SBD be able to hold the peg if there is a correction in the altcoin markets?
i doubt...
Posted via Steemleo
SBD can only hold the peg if Steem's market cap remains significantly above the 10% threshold. The threshold gets lowered when people burn SBD for Steem, but this is a slow process. After that we get haircuts on SBD burning and the price capitulates. The answer is to stop printing so much SBD during the bull runs when posts are paying out $1000 (500 SBD). I've also spoken to using the MakerDAO collateral template to allow users to create and destroy SBD to maintain the peg.
This is a problem that will get solved after SMTs are flushed out and we've hit another bull market. People need to complain about the amount of SBD being printed and then Stinc will probably fix it during the bear market when it's hurting us the most... just like MIRA and survival mode of the last bear market.
you are on point....
Posted via Steemleo