There are strong tendency that 1 SBD trade on market like 0.9x dollar. Why? government will not compensate it if Steem default on SBD, so ppl naturally treat SBD as less worth then its face value. In order to anchor 1SBD to 1dollar, Blockchain have to print steem constantly. This is called feed discount . There are other details but this is main point.
right now SBD is worth $1.03 and and lately is rather stable:
AFAIR situation is stable since feed discount was introduced, but I do not agree that this cause additional significant inflation. SBD is a promise, and feed discount is a way to deliver this promise. So... feed discount is actually a cost of operation, which is made only when someone decide to take a risk and convert SBD to STEEM (which IMO is not done very often (real data is needed!)).
feed discount make steem to be sold on market. With trade volume of steem, even that amount cause problem. I think only justifiable reason of existence of SBD is If it worked as a bait to lure none crypto ppl into the steemit and make them buy steem which I strongly doubt.
@publicworker - because of nesting level I am responding here:
feed discount make steem to be sold on market. With trade volume of steem, even that amount cause problem. I think only justifiable reason of existence of SBD is If it worked as a bait to lure none crypto ppl into the steemit and make them buy steem which I strongly doubt.
I am not sure, whether there is a place where I can find information about price feed discount of all witnesses, but
and I am also not sure, whether this feed bias -0.1% is in fact still 0.1% discount... or.. it is not called discount anymore, because right now it is more like fee, because of current price of SBD - that would be interesting
[EDIT]: I found a place where you can find information about discounts of all wintesses: https://steemdb.com/witnesses
There is little to no feed discount now (though my view is it should be a bit higher).
The main reason the price is stable is that witnesses actually started paying attention at all. Several are running bots that absorb some of the daily volatility and adjustments to the parameters are now made at least some of the time when the economics call for it. That is a huge improvement over what happened before, though it could be done even a bit better.
Yeap sometimes feed discount average will be below 0. That condition is called feed premium. Problem is, It is not symmetric. It's asymmetric. Biased to feed discount of course. So, again, only justifiable reason of existence of SBD is when it could perform as a bait to lure none crypto-ppl into steemit.
could you elaborate why you think that It generates downward pressure on Steem price?
There are strong tendency that 1 SBD trade on market like 0.9x dollar. Why? government will not compensate it if Steem default on SBD, so ppl naturally treat SBD as less worth then its face value. In order to anchor 1SBD to 1dollar, Blockchain have to print steem constantly. This is called feed discount . There are other details but this is main point.
right now SBD is worth $1.03 and and lately is rather stable:
AFAIR situation is stable since feed discount was introduced, but I do not agree that this cause additional significant inflation. SBD is a promise, and feed discount is a way to deliver this promise. So... feed discount is actually a cost of operation, which is made only when someone decide to take a risk and convert SBD to STEEM (which IMO is not done very often (real data is needed!)).
feed discount make steem to be sold on market. With trade volume of steem, even that amount cause problem. I think only justifiable reason of existence of SBD is If it worked as a bait to lure none crypto ppl into the steemit and make them buy steem which I strongly doubt.
@publicworker - because of nesting level I am responding here:
I am not sure, whether there is a place where I can find information about price feed discount of all witnesses, but
right no @abit has according to this:
and I am also not sure, whether this feed bias -0.1% is in fact still 0.1% discount... or.. it is not called discount anymore, because right now it is more like fee, because of current price of SBD - that would be interesting
[EDIT]: I found a place where you can find information about discounts of all wintesses: https://steemdb.com/witnesses
In top19 wintesses, there are:
this gives on average 1.35% discount, but I would not be surprise if average will be below 0 if price will above 1 USD for a long time.
There is little to no feed discount now (though my view is it should be a bit higher).
The main reason the price is stable is that witnesses actually started paying attention at all. Several are running bots that absorb some of the daily volatility and adjustments to the parameters are now made at least some of the time when the economics call for it. That is a huge improvement over what happened before, though it could be done even a bit better.
please check my response here, I coudn't respond to your comment, because of nesting limit.
Yeap sometimes feed discount average will be below 0. That condition is called feed premium. Problem is, It is not symmetric. It's asymmetric. Biased to feed discount of course. So, again, only justifiable reason of existence of SBD is when it could perform as a bait to lure none crypto-ppl into steemit.