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RE: Witness Discussion – SBD price and reverse peg
We have one conversion and tge other one will work the same. It can only devalue sbd if it is above one dollar. And it burns steem, so should increase the steem price.
Also it takes weeks to get to a point of a hard fork. By then the market knows what will happen and should have already adapted.
Code wise the proposal clear. How I said it is exactly how it works. If you tell me your questions, I can answer them but the proposal is fleshed out in how it will work.
What will happen and when to do the fork, that are the big questions.
Edit: the spreadfee is just a safeguard should there be issues with users converting back and forth. The lower we have that, the tighter the spread.
the biggest part I don't understand is: a small spread that would prevent abuse of conversion.
the 3.5 day correction I referred to is the amount of time a conversion would take.
Basically you can buy sbd for 1.01 in steem and sell for 0.99. That way each back and forth conversion costs you 2 cent. So if there is a chance of you being able to abuse the conversion (which we don't think there is) you have to make 2% profit to break even.
And yes, 3.5 days for the conversion.