In that case SBD's conversion amount is reduced proportionately
Just for clarity can I ask, in proportion to what? Is it a linear reduction within a range like with the print limits? What is the range?
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In that case SBD's conversion amount is reduced proportionately
Just for clarity can I ask, in proportion to what? Is it a linear reduction within a range like with the print limits? What is the range?
Proportionately to the STEEM market cap which mostly means STEEM price (since STEEM supply only changes slowly). So, in effect, SBD becomes pegged to STEEM once it passes 10%. So if STEEM then drops 10%, then the conversion rate for SBD would drop 10% as well (and vice versa). This assumes a constant SBD supply. There won't be printing so SBD supply can only change (decline) via conversions or burning. If it does then the reduction in conversion rate from a STEEM price decline would be correspondingly smaller, but that's probably a much smaller factor than movements in the STEEM price.
OK, thanks! That's clear.