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RE: SBD Debt Ratio Management Trend Analysis : Who removed our SBD?
We need Steem prices to go up soon otherwise a haircut is possible which won't be good for the ecosystem. I think Steemit Inc needs to consult an expert in order to decide on the economic model for Steem and Steem dollars otherwise this may have a very bad impact on the entire ecosystem.
I support your view. I do not know if Steem, Inc. is consulting or responding to the situation right now, but it seems that at least the witness smooth is constantly buying SBD. It is possible to see through his reply to my article.
So what would happen in this haircut?
The backing of SBD is reduced to maintain a 10% maximum debt ratio. Currently each SBD is backed by about $0.88 worth of STEEM rather than the usual $1. This will continue (with the amount fluctuating according to conditions) until the SBD supply is reduced and/or the STEEM value increases.