That wont work though, because SP is needed in order to run the voting system. SBD on the other hand is useless, since the peg is costly to maintain and it's not that liquid as Steem.
voting system cun run on STEEM, exactly like in BTS.
SBD is not useless, since launch thousands of SBD transactions were made between users. I am preaty sure, that if we would exclude transactions to exchanges, then we would find out, that SBD is used more often as real money then STEEM.
Yes but it creates a parasitic behaviour since SBD is dragging away value ,7.5%/year from Steem, andi t's not backed by anything. You cant maintain a peg without actual reserves in dollar.
Its just a fuat currency that is ineficient and siphons away value from the system.
Go to your wallet and see there, sometimes it's 7% sometimes 7.5% sometimes 8%, I am not sure how the algorithm is working, but it's rought around that number.
SBD is usually about as liquid or more liquid than STEEM. It is common to be able to trade 1-3k SBD near the market which is equivalent to 8k-24k STEEM. The latter is only sometimes (not all that often either) available near the market.
The value 'siphoning' (as you call it) is frankly so small as to be negligible. This is something where you really have to work out the numbers and especially look at the market cap ratios along with a reasonable calculation of what percentage of the market cap is a reasonable estimate of costs. My rough estimate is well under 0.5% of STEEM market cap per year possibly (with somewhat favorable assumptions) as low as 0.1% per year. I view SBD's utility as easily adding enough value to carry its weight and it isn't close. I have some other doubts about it, so this shouldn't be viewed as unconditional support, but I just don't by the 'siphoning' argument holding water based on the numbers.
get rid of SP and only keep SBD and Steem :)
That wont work though, because SP is needed in order to run the voting system. SBD on the other hand is useless, since the peg is costly to maintain and it's not that liquid as Steem.
voting system cun run on STEEM, exactly like in BTS.
SBD is not useless, since launch thousands of SBD transactions were made between users. I am preaty sure, that if we would exclude transactions to exchanges, then we would find out, that SBD is used more often as real money then STEEM.
Yes but it creates a parasitic behaviour since SBD is dragging away value ,7.5%/year from Steem, andi t's not backed by anything. You cant maintain a peg without actual reserves in dollar.
Its just a fuat currency that is ineficient and siphons away value from the system.
why 7.5%/year?
Go to your wallet and see there, sometimes it's 7% sometimes 7.5% sometimes 8%, I am not sure how the algorithm is working, but it's rought around that number.
SBD is usually about as liquid or more liquid than STEEM. It is common to be able to trade 1-3k SBD near the market which is equivalent to 8k-24k STEEM. The latter is only sometimes (not all that often either) available near the market.
That is not the issue, the issue is th value siphoning, I will write an article soon about it, where I will detail the problem.
Liquidity is measured in the spread and the market depth which is much much less for SBD than for Steem.
The value 'siphoning' (as you call it) is frankly so small as to be negligible. This is something where you really have to work out the numbers and especially look at the market cap ratios along with a reasonable calculation of what percentage of the market cap is a reasonable estimate of costs. My rough estimate is well under 0.5% of STEEM market cap per year possibly (with somewhat favorable assumptions) as low as 0.1% per year. I view SBD's utility as easily adding enough value to carry its weight and it isn't close. I have some other doubts about it, so this shouldn't be viewed as unconditional support, but I just don't by the 'siphoning' argument holding water based on the numbers.
Here is my response article:
https://steemit.com/steemit/@profitgenerator/sbd-should-be-removed