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

[smooth]

having the power to demand a certain dollar amount of Steem at any time can only lead to Steem inflation.

It leads not specifically to inflation but to leverage. That is, increased inflation when the STEEM price is declining but decreased inflation when the STEEM price is rising (i.e. $1 paid out in SBD rewards can only demand a smaller number of appreciated STEEM)

Comments

[thecryptofiend]

Getting rid of SBD does not change this. If I think STEEM is going to fall I will hold BTC or Tether or real USD or something else. I won't suddenly decide to hold something I expect to fall because you have removed one of a huge number of available alternatives. This argument is nonsensical.

Nonsensical to you perhaps. Not to me. On the basis of that reasoning we don't need SD anyway since we have USDt or real USD.

We will not agree on this so let's just leave it there.

[pfunk]

Why not offer a competing and potentially superior USD peg token within the ecosystem instead of using something external? Unless I'm wrong, Tether has 10 minute (average, so you could be waiting 30 minutes+ sometimes) confirmation times because it's built on Omni which is built on the Bitcoin blockchain. Steem blocks are 3 seconds apart. Nowhere do I see Tether being advertised as speedy.

It might be a longshot but Steem's SBD has the chance of being a popular and possibly even de facto USD pegged token in the cryptocurrency world as it expands to include more than just computer nerds (in line with the goal of Steem).

[thecryptofiend]

I think it is dependent on how many people it brings in. It might be useful to get some more expert economic opinion on this - I wonder if there are any economists in the community who can look at this?