Thanks for laying that out in terms most can understand. The issue is most users don’t want the price to fall and will consider a peg at $1 or even $2 to be heavily undervalued given recent prices!
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Thanks for laying that out in terms most can understand. The issue is most users don’t want the price to fall and will consider a peg at $1 or even $2 to be heavily undervalued given recent prices!
I understand that, but for some who rely on a pegged asset because their own national currency is out of whack, what can we offer them? They have to leave the ecosystem and go to bitUSD or Tether because they can't handle the fluctuations from $8 to $6. Also, to me, the value lost in terms of SBD could be recovered with an increase in STEEM which increases the reward pool for everyone.
Instead of one SBD worth $7 on the open market (but still $1 worth of STEEM as far as the blockchain is concerned), I'd certainly prefer people get 7 SBDs worth $1 worth of STEEM and $1 on the open market.
I agree it has utility but see is as very problematic to implement. It is supposed to be pegged now yet clearly isn’t. Added to the fact that people would reject the idea as anyone holding SBD would lose, I don’t see it going anywhere. Unless you propose a peg at a higher level than current prices. That is likely to be popular. Or perhaps an agreement that SDB will be pegged at $2 on date X but can be redeemed at current value as SP up until that date?
It works on the downside. But nothing for the upset. Ideally, I'd like to implement something in the future that doesn't hurt people now. To do that, we may need more SBD printed. A reverse conversion might help with that.