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RE: Witness Run: My outline of the Economics of the system. What to do to keep the SBD peg at $1USD and why we should.

in #witness7 years ago

witness vote cast, i wish you much success.

By the way I outlined here a proposal how to keep the steem dollar peg, would be nice to have your feedback: https://steemit.com/steem/@arcurus/improving-steem-liquidity-through-using-buying-selling-pools

In short for every created steem dollar the same amount of steem is put into a so called buying pool. If the steem dollar price is higher than the peg, new steem dollars are created and exchanged for steem which is also added to the buying pool. If the steem dollar price is lower than the peg, the steem in the buying pool is used to buy back and destroy steem. This would also help to provide liquidity in the internal market.

On top of that the selling pool proposal would make the manual conversion of steem dollars obsolete and therefore guarantee, that steem is not more inflated per year as promised by the inflation rate even in case of a bank run.
This would also simplify the system because no manual conversion is needed anymore.

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Hi there. Its been a while. Still remember me? :)

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