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RE: Steem Authors Get an Epic Pay Raise with SBD = $10+ USD!

in #steem7 years ago

@ats-david made a great reply to this in the witness channel just now!

Currently, SBDs are created based on blockchain protocols and witness parameters. The purpose for that, I believe (at least in theory), was to make the production and pricing of SBDs more stable and defined by consensus. Since SBDs are essentially a debt instrument, it would create a lot of potential risk to allow any single person to simply increase the future debt load by allowing them to basically print SBDs on their own. By taking SBD creation out of the hands of any single person/entity, that alone would mitigate/prevent a large avenue of abuse.

There were proposals for this back in the spring when SBDs were trading around $2 and there were several conversations about it. Back then, it was generally agreed upon that it would create too much potential risk to allow two-way conversions. I was trying to find the discussions about it...but I've realized that finding old discussions is nearly impossible around here unless you know the user or title.

In my opinion, short- to mid-term price spikes aren't a major concern. I'm more worried about mid- to long-term peg issues on the low side. Higher prices are essentially an extension of trust/credit to the blockchain. Lower prices are generally a sign of mistrust or a lack of confidence. Either way, I don't think the Steem economy/ecosystem is large enough to even worry about prices in regard to holding a firm peg. There is a relatively tiny economy that even uses or relies on SBDs at the moment. I don't think any quick decisions need to be made on this - and certainly not any changes to blockchain protocols yet. Let's see how this plays out over the next few weeks.

To summarize what he said, we risk more by allowing conversions in both directions and price spikes are not a major concern.

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A user on the chat showed me this old post proposing the same
https://steemit.com/sbd/@timcliff/saving-sbd-proposal-to-restore-the-usd1-usd-usd1-sbd-peg

I think that the discussion is very interesting. This post of @timcliff was worth in 700 usd, then it had a good visibility in the community. But I not see any comment of @ned or @dan.n

Very interesting point, thanks.
I would like to deep more in details. If someone knows about the discussions he mentioned please give me a link.
I want to know more about the possible risks of printing SBD. Think that the price of steem doesn't has a lot of volately and normally it is growing. We will have some risk if the price goes down to little cents...