You are viewing a single comment's thread from:
RE: Ask Questions You Would Like Answered on the Next Steemprentice Hangout: Sunday, Nov 13th, 2-4pm CST
Which is the true problem of steem its price to fallen too much and not recovered.
Are you sure the future of steemit?
Because I no longer receive payments from steem dollars I only receive payments from steem and steem power. thank you very much.
Exclente post congratulations
Many thanks for the dollar steem deposited in my account
Some of these I want to leave for the hangout where there are others around to help provide their expertise and views. But I did want to at least respond on the steem dollar question.
Steem dollars are considered a debt (since they can be traded in for the approximate $1 USD worth of Steem.) The SD's have ideal levels (from what I read in @dantheman's post here) at around 1% or so of the market cap (which is just the current share price of steem multiplied by the total number of shares.) As the price of steem (and hence the market cap) goes down, the Steem Dollars become a larger p.ercentage of the market cap. Since the goal of the Steem Dollar is to be pegged to the US dollar there are certain points where changes kick in to help maintain this.
As this percentage of SD's vs the market cap went beyond 3%, we began to see more rewards paid in Steem instead of SD's (i.e. printing less steem dollars) which @ausbitbank made a great post about here. Once the Steem Dollar to market cap percentage went above 5% ALL rewards were then being paid as Steem (hence stopping Steem Dollar printing) which @ausbitbank again touched on here.
There are other SD percentage thresholds where other actions 'kick in' to help prevent certain 'black swan' events, which I've so far seen at 20% of the market cap. Since I think I remember seeing another option or two out there (like losing the peg to the USD and instead set to 10% of the market cap itself,) I do want to make sure this part in particular is discussed on the hangout since I don't want to put inaccurate information out there.
The one that I am able to find is in a @dantheman post on Steem Dollar Stability enhancements that says:
Feel free to ask if you would like any of the above clarified. I'll do my best and/or reach out to others. I don't claim to be perfect. :)
TL;DR The stopped printing and giving Steem Dollars for post rewards because the debt of existing Steem Dollars was to high a percentage of the market cap. This is done to help keep the 1 SD = $1 USD (defined acceptible within 0.90 and 1.10 range) peg in place with other measures in place to help 'black swan' events.
And your very welcome for the Steem Dollars I sent for the Steemit Talk Podcast Halloween Contest voters choice prize! :D