You are viewing a single comment's thread from:

RE: The Calm Inflation Proposal & The Additional Advertisement Proposal

I generally like your proposal. Actually like it quite a bit.
My question comment is more about the current 10% level (of market cap) before SD start getting less than 1 usd worth of Steem in conversions.
The argument is that 10% is effectively doubling the liquid steem so this level is reasonable in order to prevent black swan events. The proposed 12 week conversion will potentially add up to 1/12 or (8.33% per week, 16.66% per 2 weeks etc) of the total market cap to the liquid steem . Far more than the 'up to 10%' we currently consider black swan threat by the SD .

Sort:  

Other changes would (or at least should) likely increase the equilibrium level of liquid STEEM in the system. The current low level is due to the extreme preference for SP as a function of punitive STEEM inflation. If these changes are made hopefully adjusting that balance (and removing the extreme punitive preference) is part of the equation.

That would not only make 12 weeks more viable but would likely make the system more stable overall with respect to the sorts of 'black swan' events you describe. Still, crypto markets are highly volatile and don't necessarily have high consistent liquidity even when they are overall more liquid than Steem is today, so it will always be an issue to an extent.

BTW, thank you for bringing my attention to your comment as I found it interesting and relevant.

Coin Marketplace

STEEM 0.17
TRX 0.13
JST 0.027
BTC 58334.82
ETH 2595.71
USDT 1.00
SBD 2.40