Abit Witness SBD pegging policy update
I've made some changes to my SBD pegging policy:
- Annual interest rate of Steem Dollars from 10% to 15%
- Bias/offset on feed price from 12% to -0.1%
Due to these reasons:
- Higher interest rate encourages people to hold or buy in (there are too much sell pressure in the past weeks, although less recently).
- Stronger Steem leads to stronger Steem Dollar. Dumping Steem to the market should be discouraged, even if the Steem came from conversion (from Steem Dollars). Converting then Powering up makes more sense (which I have done). By the way, I think reducing rewards of any kind could be a good idea, which probably includes curation rewards, SP "interest", and even witness pay and author rewards, they're generally free money, too easy to get, so few hesitate to cash out.
For more discussions, please check this post wrote by @smooth which I think is very thoughtful, also some posts wrote by @clayop.
(Post reward / payout declined)
Can't agree with the zero/negative bias, brother abit. While it is always nice for the price when people want to power up (as you did --respect!), with a poor and risky conversion rate people will avoid conversions and just sell their SBD instead, even if to buy STEEM and power up. We'll be back to a weak SBD and increasing debt (which is already too high). I do believe that if SBD stays strong and as debt comes down the bias can be somewhat reduced. I've been considering a modest reduction myself (also keeping in mind that the economy will likely change significantly after the upcoming fork).
Different points of view are okay though.
I appreciate your inputs guys. I'll need to ponder more on this matter.
I completely agree!
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