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RE: Thoughts on STEEM-Backed Dollars and Holding the Peg

in #steemit8 years ago (edited)

My thought is that if the witnesses try to gauge the steem price by modifying their witnessing votes, they are basically doing what the Federal Reserve in the USA is trying to do. They are trying to set an artificial rate, in order to achieve a market objective. What they will invariably do in the end is overshoot reality, over-produce SBD and SBD will then get into below $1 range, and they will have to then adjust their projections in reverse... or we rely on the market behavior of conversion on the platform which probably would stop the reverse behavior of a glut below $1. Because of that, I think #2 is a good idea.

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Also, why can't we get 100% SBD payout? It would help solve this issue. I would just move it to the exchange, buy STEEM and send the STEEM back, but it would be worth doing.