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RE: Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?"

in #ned8 years ago

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.

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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.