RE: Three Reasons Why We Should Not Support Feed Premium
I disagree with this, however I do think that it's consistent with your general opposition to discounts.
I would push back on a couple points, though. For one, users who are converting are already losing money through the conversion process. And as I pointed out in one of my recent posts, the high price of SBD negatively impacts users who select to power up 100% of their rewards.
So it seems to me that the best way to reduce this harm is to get the SBD price down so that users don't have to have knowledge of the market prices of both tokens in order to avoid costing themselves money.
And as long as SBD is extremely high, it's essentially unusable. Merchants accepting SBD won't exist. Stability is the selling point of the currency, and if you can't buy some without the expectation of losing a third of your value, you wouldn't buy it for its utility. It would remain a speculative tool and not accomplish the goals it seeks.
It's not losing promised money if they get around $1 value STEEM per unit 1 SBD conversion. In fact, they will get more money when they sell SBD.
Same perspective. Authors choosing 50/50 option get more while 100% power up will get as promised (1 SBD = $1)
Here, I want to bring some questions. How many merchants exist dealing with SBD, and how much have they negatively impacted by high SBD price? Is there serious sales or profit decrease?
I disagree on the first two points, because I am looking at it from another angle. I think it's an almost semantic argument.
But I'm not aware of many merchants dealing with SBD exclusively, primarily, or without regard for its market price. I think that it is an obstacle for adoption to have an unstable currency. This is why most people who take crypto payments convert prices according to fiat prices at the point of sale. A high SBD price brings in to question what the utility of SBD is in the first place.
I think stability is not the key. Please read my post
You make some interesting points, but I have a different point of view on it. I don't have any interest in SBD somehow replacing USD. But I do think that it has value if the peg is reliable, for being more comprehensible to the general public and easing their transition to using crypto in a way that is not intimidating. And if the peg is reliable, it would reduce the overhead of anybody who would want to do business on the platform, by eliminating uncertainty and conversions between fiat and SBD...
I understand your point of view. But do you have a plan when converters have significant loss due to feed premium?
Right now converters are losing 1/3 of their value by converting. That's a significant loss. What is the plan to address that?
They get $1 value of steem when convert 1 SBD. Its not a loss, rather selling just earns more than promised. But if feed premium is 50% they will get only $0.67 value of steem. I am asking this and please answer.
It's definitely a good idea to disable conversions in the gui in that situation, or at least have a prominent warning.
After all, conversions aren't desirable with a high SBD price, anyway.