This is normal. SBD is supposed to be pegged to within +/- 10% of the USD. So it's actually considered normal behavior to fluctuate between $0.90 to $1.10.
The overprice of up to $2.17 that we saw is actually not normal behavior at all. I expect it to stay at the $0.90-1.10 range for a while, if not just from now on.
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I agree, but this doesn't happen by magic. It happens because witnesses do the right thing to help make sure that SBD stays in the desired range.
For sure. More than anything this was a response to the new people who might not know that info. Of course I know you knew it. ;-)
I dont understand the logic, what witnesses do? raising or lowering the interest for sbd? who pays for that? the witnesses ? is it like raising the dividends to make steem share more atractive?
I mean, is that the only tool to try to maintain the sbd within the expected range of price ?
btw, voted and followed !
They can raise the interest rate that the system pays you for holding Steem Dollars. This encourages people to hang on to their dollars and not just dump them.