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RE: TimCliff Witness Update 2018-03-19
Some witnesses are using what is called a 'bias' to report a price feed to the blockchain that is higher than the "actual" price. The reason to do this is to print more SBD rewards, since SBD is currently trading above $1 USD. Even though this does short term good (helps bring the SBD price back to the peg), I feel it does long-term damage by increasing the debt burden, as well as inflating STEEM at a higher rate than is defined by the blockchain's inflation rules.
Ohhh I thought the bias here was to reduce the print out of SBD to prevent it from loosing too much value. I need to go read again on this topic
Witnesses can use a bias in both directions. Under the current market conditions, if a bias were to be used, it would be to devalue SBD, to bring the price back down towards the $1 peg.
I see. I will continue to learn more about this and try to decrypt few parts of the whitepaper.