Witness updatesteemCreated with Sketch.

in #witness-category7 years ago (edited)

I will be reducing my vote on SBD interest rate (APR) from 4% to 2.5% as of February 1 and reducing my account creation fee vote from 50 to 30, which is the current median. My price feed discount will remain unchanged at 2%

The APR is being reduced because SBD has been consistently strong during January and especially in the second half of the month. SBD has repeatedly traded above 1 USD, and rarely if ever below. My stability fund account which trades with a goal of keeping SBD at 1 USD has continued to see imbalanced conditions with demand for SBD exceeding supply, resulting in a steady drain of SBD from the fund and an accumulation of excess balances in STEEM and BTC. Given these market conditions and the ongoing cost of a higher interest rate, it is clear to me that the SBD interest rate should be lower. (In general, I believe the interest rate should always be reduced as much as possible as long as there is sufficient demand to keep the SBD price from falling below 1 USD, as this minimizes interest cost.) I would have reduced the rate earlier, however I am following the schedule of waiting to make these adjustments on the first of the month when feasible.

I am reducing the creation fee to the current median to cease opposing those witnesses who believe it should be lower. However, I don't really believe that any of these small changes make much real difference.

My feed discount is being maintained because the supply of SBD remains high, above the 2% "debt ratio" level where the system reduces creation of SBD in response to excess SBD in the system. Maintaining the feed discount continues offering an incentive to convert SBD into STEEM. (I have been doing these conversions, along with a few others, but the rate has been modest.) Long term I believe the feed discount should be lower (probably <1%, possibly as low as 0.1%), but only once the SBD supply has been fully normalized.

Rewards from this post (in whatever form received -- STEEM, SBD, and/or SP) will be converted to SBD and burned, as were previous witness post rewards. Proof of the burn will be posted as a comment reply


Proof of reward burn: steemd

You have reduced your vote on SBD interest rate (APR) a lot. It seems that you have done a great work. Thank you very much! I wish I knew so many as you know! Cheers!

Yes, it is a big decrease. It may turn out to be too much, although so far repeated increases have still left SBD quite strong. However, raising the APR if needed (though I don't really expect this) can be done without waiting a month. It is only the declines that arguably problematic because some people have no opportunity to even collect the interest before it is cut.

@smooth.witness we'll be overlapping the winners for this week and last week so please check your chat. We're already a week late for the #12 so please take care of the winners for that before I announce the winners for #13. Or at least get back to me in the chat, please do thank you very much.

Taken care of now. Thanks for the reminder.

@smooth thank you.
Now it's burned :)

Hi , I m new I don't know how to use steem can u please explain me about steem , thank you

Good to hear the reasoning in the process of something I was totally unaware of. I'm still quite a newbie in spite of it all... LOL!!! By the way, what do you mean you will "be converted and burned"?

All for one and one for all! Namaste :)

what do you mean you will "be converted and burned"?

If the payout were entirely liquid then I could take the STEEM I receive and trade it on the internal market for SBD in order to convert it to SBD. However, I'll actually receive STEEM Power which is not liquid, so I'll just use an equivalent amount of my own SBD, meaning I'll receive SP and give up equivalent SBD and come out even. As far as the burning part, that involves sending it to the @null account, which removes it from the money supply (the same process that is used to pay for visibility on the Promoted page). The eventual net effect of the burning is to slightly reduce the total amount of STEEM and therefore make everyone's STEEM worth slightly more.

Thanks for the enlightening reply. 10/4! All for one and one for all! Namaste :)

Please vote this witness up. There are three kinds of Steem voters: Those who count and those who can't.

I love Lucky Charms. Silly Rabbit, Steem is not for Rothschild kids.

Rewards from this post (in whatever form received -- STEEM, SBD, and/or SP) will be converted to SBD and burned, as were previous witness post rewards. Proof of the burn will be posted as a comment reply

Remind me why not just "decline rewards" ?

if he burns then the supply gets smaller, if he declines supply stays the same

This is especially useful in the case of SBD oversupply and converting the earnings to SBD before burning as I am doing here. Earnings from this post directly reduce the amount of SBD and return that value to the stakeholders by reducing supply.

The other advantage I see is those who vote this post will have their curation reward. This doesn't penalize those who use bots to give visibility to your post. For these reasons burning post rewards is preferable to refusing them in most case if not all cases. Maybe this should become a feature that could be automated.

I agree with you. What it comes down to is that anything where voters use their valuable vote power and don't get a share of curation rewards is effectively penalized/discouraged. Another example is voting post-payout. The developers see it differently though, and continue designing features which deny voters curation rewards (and therefore create these perverse incentives), such as the recent proposal for comment voting.

would be awesome if "deny rewards" meant - give curation to voters yet burn SBD. i hope one day it gets added (fixed)

Voting post-payout affecting voting power is plain weird I agree. No curation reward for comment is debatable. I'm not set yet.

I agree. Curation is free market. Capital will find its way out. If there is no room to stay, it leave.

@smooth.witness okay let's burn that reward soon ;)
please check your chat so you could burn those rewards soon.
Thank you .

Thanks for this update. I'm still not sure how all this works but I do know a stable currency is a good thing. Keep up the good work.

I voted for you as my witness :)

Thank you for your vote

You are very welcome. I observe :) for a while already and like what I read....

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