Thanks for all you do for the community!
I wonder if you could say something in brief about the "price feed discount" -- what the purpose of a discount is, and why you dropped it. Thanks!
Thanks for all you do for the community!
I wonder if you could say something in brief about the "price feed discount" -- what the purpose of a discount is, and why you dropped it. Thanks!
The price feed discount has an impact on the SBD peg.
SBD is not really a currency, more like a smart contract: 1SBD always offers $1 worth of STEEM. So if 1 STEEM is $0.25, 1 SBD will buy you 4 STEEM, if it's $0.2, 1 SBD will buy you 5 STEEM. SBD can be converted into STEEM, internally, via this price feed, which gives a bit of control over the market.
Simply put, the back and forth between SBD, STEEM and the price feed (at which conversions between SBD and STEEM occur on the internal market) keeps a healthy balance at the currency level, taking into account all factors on the whole market.
There is a more in-depth explanation by another witness, @clayop, here:
https://steemit.com/steemit/@clayop/the-impact-of-price-feed-discount-on-the-market