Let's burn some SBD!
The SBD debt load is one of the more disturbing aspects of the declining price of STEEM. When it broke 3%, author rewards began to be awarded in liquid STEEM in addition to SBD. As it got closer to 5%, the amount of SBD awarded got smaller and smaller. When 5% was breached, SBD rewards became a thing of the past.
*Now, we're sitting at 7%. *
At 10%, SBD will stop being pegged to the dollar. It will instead be pegged to 10% of the market cap. This means that everyone with SBD will see it lose value in the name of debt reduction.
Nobody wants to see that happen. It will be bad for SBD holders, bad for the Steem economy, and potentially disastrous for the entire platform. We must be proactive about reducing the debt load.
As I wrote in a comment on another post, I don't think burning your own SBD is a particularly good idea and I don't think it will really accomplish much - at least from the average user perspective. You'd be better off converting your SBD to Steem and powering up. The problem isn't necessarily that there's too much SBD - it's that the price of Steem has fallen too far due to a lack of interest in the platform and currency, resulting in a skewed ratio of SBD to market cap. We just need more development and new/better ways to spend the currency. It needs to be more attractive to users and investors.
If burning SBD is the solution to the problem (which could only serve as a short-term solution, at best, if prices continue to decline like they are), then the burning needs to come from the Steemit accounts that are holding a very large percentage of SBD - accounts like @steemit, @steemit1, and @steemit2. That's really the only way that a difference will be made. For regular users that only have a few dozen SBD anyway, there's really no point in burning it if those larger accounts aren't doing the same. Selling it or powering it up would be a better move, in my opinion.
I like your initiative, though, even if I don't want to participate. Solutions for issues like this should have already been planned. It's not like this wasn't foreseen a few months back when @dantheman wrote about it. If there was enough foresight to know about the problem, there should have been solutions that were better than just letting the peg go to the wayside. There have been some rather large centrally decentralized missteps so far. I hope this can be eventually corrected.
Stop ruining the fun. Burned 70. If I receive any prize from the competition that will also be burned (used to promote another post)
I think there can be a cumulative impact from burning small amounts of SBD. Personally, I'd like to see SBD remain relatively stable. As long as it stays above 80 cents nearly always, I am fine. I don't want to see the 10% threshold tested and a possible crisis of confidence in the SBD destroy it entirely.
But obviously burning SBD is a pointless exercise unless accompanied with stability in the Steem price. It's just one stress point which needs to be addressed in order to develop a robust economy. The overall inflation rate will be addressed in the changes announced today, which I think will go a long way towards providing the stability that we need.
I don't understand anything anymore . So confusing ! I have nothing left because I burnt them all to go to party @steemfest 🙈
you did the right thing!
Haha I know ! I need to collect some more to get one of your Tee's black stretchy but tight for big boobs :)
I burnt $7.15 SBD for promotion. Am I in the running? Oh crap, I promoted my own post. But it's a good post... which mirrors your thoughts on how to jumpstart steem and steemit in a way. :)
Instead of burning, why not convert to liquid steem and then power up a deserving minnow? People have been complaining about the income distribution around here for a while. Why not fix it by powering up accounts with STEEM you get from a SBD conversion?
Are you some kind of Marxist or something? :-P
That would be an awesome thing to do, absolutely.
That is a really great idea. You should write a top-level post to popularize it!
Nah, then @bacchist could call me a Marxist. :) I'm more of a fan of letting the market decide what the value will be for all of these tokens over the long term.
Instead of burning why not put it in a Legacy account that pays for ALL votes (devise a fair formula) AFTER the last payout period.
In other words...post a good article...people vote on it years from now...you get paid.
However...if you don't want to do that and you have all that excess Steem lying around, cluttering up your Blog and Wallet...I'll take it off your hands. Send it to @everittdmickey. No charge for the service.
Hehehe... I like the idea of contributing to all... in a sense, burning does that as the value of everyone else's holdings go up.
How about having a discount period where people who power up internally get twice the amount of SP for their Steem Dollar for a short period? That could get the process started. Obviously I'm not an economist so there may be a fatal flaw with this I don't see. It is market manipulation but may be the lesser of two evils compared to unpegging the Steem Dollar on all the markets.
That could help absorb some of the excess supply, I would imagine. Unless I'm missing something, that would be a great idea.
It would have to be limited though or we would run out of Steem (potentially).
Interesting/creative :)
Burn burn burn, burn it down! :D I don´t have any SBD left to burn... :( But great idea @bachist!
Hahaa
Promoted with 10 SBD.
https://steemd.com/tx/e96a4bf7045e5772f40857aba77a248ab843a1e1
Have you seen today's post and the proposed changes by @steemitblog?https://steemit.com/steem/@steemitblog/proposed-changes-to-steem-economy
Yeah, I think it's all for the best. Though I might halve the SP wait period to one year, instead of slashing it to 3 months right away.
La conférence se déroule dans un lieu magnifique, un 19ème siècle Tango théâtre tard. Vous voyez la richesse d'une époque où l'Argentine a été l'un des pays les plus riches du monde, avant que les politiciens socialistes ont ruiné son économie.
Oh boy I hate Steemit economics.
Goodbye my lover: No more SBD rewards
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