Steem Dollar interest rate. Are witnesses asleep at the wheel?
I have been out of the loop for the last while, but I first got involved in Steemit 2 and a half years ago. So I may be missing something. But ...
There seems to be something wrong with Steem Dollar (SBD) and the witnesses.
As a way to keep SBD from going to far below $1 USD value, there is an interest rate on SBD. This rate is voted on by the witnesses.
First here is the value of SBD over the last 3 months
While here is the top 20 witnesses voting prefs
As you can see while the price of SBD has fallen sharply, non of the top 20 have increased the APR. The highest witness with >0% is @ihashfury with a rate of 6%.
Now I may be missing something and there could be a good reason for this. But a search of Steemit returns very little discussion of the mechanics of the SBD peg. I am basing my understanding from the white paper which could be very out of date by now.
So if any witnesses, or anyone else can explain/justify this 0% APR on SBD, please contact me.
@gtg
@aggroed
@timcliff
@good-karma
@roelandp
@blocktrades
@smooth.witness
@ausbitbank
@someguy123
@followbtcnews
@jesta
@lukestokes.mhth
@utopian-io
@curie
@yabapmatt
@anyx
@clayop
@thecryptodrive
@drakos
@cervantes
I think the main idea behind 0% interest rate is that in the current situation witnesses do want people to convert SBD rather then to hold it.
That would make sense if the value is above $1 they want people to start selling it but with Itt below $1 they should really be encouraging more people to keep it.
The main problem I see is that when it is above $1 there is no great way to reduce it I think a minus interest rate would be helpful
Posted using Partiko Android
Converting SBD isn't the same as selling it or exchanging it for steem. The conversion destroys the SBD, theoretically increasing value via reduced supply.
Correct. To bring SBD back to 1 USD we need either Steem price to go up to about 0.4 USD or we'll need to burn about 5 million SBD , redusing the supply from the current 12 million to 7 million.
@fiveboringgames
It would be cool if someone could compile a list of what witnesses to vote for, at this point I don't care about the politics, just want the site to operate and function.
/FF
I may try to do this, at least follow up on the current top 20 and see if they are doing their work.
For example is it ok that half of them are not on the current version? I can see reasons for it so I didn't want to call it out.
Yeah, I basically just want to make sure Im voting for the ones that do their job properly, not missing blocks, and keeping things in order....
/FF