Adjusting My Price Feed Bias Down To 50% (From 250%)
Since the price of SBD is steadily coming down to $1, I adjusted my price feed to 50% from 250%, which means less SBD is printed now.
Many witnesses did the same thing, which means the overall balance between the printing of SBD and its value will be soon restored - probably once we reach the peg again.
Witnesses which are still displaying a higher price feed bias: @netuoso, @pharesim, @abit, @yabapmatt, @reggaemuffin, @liberosist, @ats-witness and @arcange.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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hmmmm..... so the strategy has worked. it took a while, but all things do.
So with the stabilisation of SBD does that mean we'll be betting paid in STEEM again soon and we'll be getting more Steem Power in the payouts?
Yep.
Well that has to be a good thing right? :-)
Hope you are having an awesome holiday :-)
I understand need to push SBD price back to $1 but why is price of steem dropping so much ? Do you think it is only market related ?
The entire market is dropping like a sharp knife.
Glad you adjusted the price down again @dragosroua although it doesn't sound like it's going to mean more Steem for us anytime soon.
not really sure what your'e doing but glad to hear you and other witnesses have got your eyes on the ball! 😊
SBD is more closely tracking STEEM now than any other time in the last 3 months. I'd argue that this is concerning, as it seems the witnesses can do little to impact SBD in these market condition. I agree that we need to lower the bias as the SBD approaches $1, but I am not sure if the witnesses can change the supply enough to affect the price. The price seems most dependent on larger market forces. We want an SBD that can be nudged by witnesses, not one that is highly coupled to STEEM.
Exactly. But for now the only tool that witnesses have is increasing / decreasing SBD supply relative to STEEM.
To drive the price down, yes. But, so far, we haven't seen this actually work in practice. SBD has closely followed general market trends. I don't think most witnesses even care if SBD is $1.
I think we can gently agree to disagree here. AFAIK all top 50 witnesses know how things work and some of them, me included, are actually doing things in this area.
I don't doubt they know how things work. However, many of them argue that SBD should be allowed to be as high as possible to lure in new users. As far as their actions, only about a dozen of the top 100 witnesses ever had a positive bias. This was true even when the price was nearing $10. If you don't think that the actions and words of these witnesses prove that they do not consider SBD to be an important concept, then, sure, agree to disagree.
Isn't this quite premature? 1.6 USD is 60 % over the peg, and blocks are mined every 3 seconds, seems to me you could keep it at 250 % for a while longer.
I'm not the only witness doing this, the price feed bias is an average, so I'm adjusting it looking at what other witnesses are doing as well.
Those are great news
Now it's a fair price
I don't understand much about this. Where can I find some info on how these price feed biases work?
The white paper.
Aaaaa, I'm a bit lost in white papers, but I'll try to take a look at it and see if I understand some things.
Come on ... let me quote a few impenetrable paragraphs from the white paper:
"If the debt-to-ownership ratio gets dangerously high and market participants choose to avoid conversion requests, then the feed should be adjusted to increase the rate at which STEEM paid for converting SBD."
I was pretty happy with my proficiency in both English and financial nous but this here reads like greek to me ... even the English appears broken ...
"It is our belief that these rules will give market participants confidence that they are unlikely lose money [sic!] by holding SBD purchased at a price of $1.00. We fully expect there to be a narrow trading range between $0,95 and $1.05 for SBD under normal market conditions."
I don't remember the last time SBD traded within this range ... the whitepaper seems hopelessly off-the-mark with respect to SBD
That information allows me to pinpoint very accurately the exact moment when you joined the platform. Which, in all honesty, means you spent very little time here and, again, in all honesty, the amount of time in which SBD traded in the $0.95 - $1.05 corridor is way bigger than it.
But are there any plans to address the "breaking" of the peg? It has been off for a very long time now, and I've seen at least one proposal how to fix it.
Yep print more sbd with increased supply sbd lowers.
Sure, that is what @dragosroua and other witnesses have been doing, but it obviously haven't been efficient enough (or they haven't printed enough). It hasn't been pegged in any meaningful sense the last 3 months...
that's the only way to do it, except it takes (quite) a lot of time.
That why the crypto dump is good with sbd falling but the supply increased severly the chances of the sbd pump occuring is unlikely. Plus sbd volume may beeen affected by fake volume:
https://medium.com/@sylvainartplayribes/chasing-fake-volume-a-crypto-plague-ea1a3c1e0b5e
Everyone has joined the platform at one point or another. You can see on the blockchain when I joined, you don't need to triangulate from the price of the SBD :-)
I joined in August last year but at first I didn't understand anything about SBD. I still don't understand much despite the fact that my copy of the whitepaper is worn and blackened with notes.
According to coinmarketcap SBD has been waaaaaay over $1 for the past 4 months which seems a pretty significant period of time to me when the platform is less than 24 months old ... Normally when STEEM is quoted USD1.5 on average, the SBD -> STEEM conversion should be 0,66. That is, one should get only 0,66 Steem for an SBD, if the whitepaper was any indication. Yet SBD is pretty stubbornly above 1 Steem lately ...
You say that you adjusted your "price feed bias" to 50% from 250%. I've searched the whitepaper and the word "bias" does not appear. What is this "price feed bias" you are adjusting ? Is this related to how you are expected to behave 3,5 days from now with respect to SBD generation or something like that ?
I understand that you want to keep things fuzzy and obscure but in all honesty I think sending people to the whitepaper is a cheap and not very honest trick on your side :-)
He not talking about the four month. It been $1 most of it history
Sure, but that was mostly beside the point - notice he has deflected my question.
He's a fox :-)
He doesn't want too many people to understand the intricacies of the system because then abusers will have it easier to abuse it ...
While his intentions are commendable and I fully agree, I never believed obfuscation was effective at fighting abuse.
I'm just sparring a bit with Dragos, it's sunday after-noon, I'm learning about steem ... nothing too serious :-)
Are you serious? I wrote countless articles explaining STEEM, I published video courses even on other learning platforms, like Skillshare, and you are telling me I want to keep things fuzzy and obscure?
If this is your type of Sunday joke I find it lacking its fundamental ingredient, namely humor.
Sending people to the white paper is the most honest thing I can do. If you want the most accurate explanation for how things work in this blockchain, the first thing you do is to read its white paper. Everything other than sending people to the white paper will imply that I have some sort of obscure knowledge and I know how things work around here better than the creators of the platform. I'm a user, just like you and I assumed a more involved role than many others, by educating, maintaining a witness node, contributing in other ways - which can be translated as "having more skin in the game".
I can give every now and then my interpretations of the white paper, but that would be regurgitated knowledge. If you enjoy this type of information, I honestly regret to say that I can't provide it to you.
Peace.
So now both sbd and steem will be in 50/50 ratio ?
Mehn this ia becoming a reality...lemme convert my sbd to steem asap and power up before I cry in the end.
I always cry in the end. And here I thought I would see my little whale's votes become a fortune. Now I can't even buy anything with the sum of it all :C
Appreciate the witness updates.