RE: How SBDs Are Created And What Could Happen If SBD Is "Pegged" To $10 Instead Of $1

[dragosroua]

Thanks, glad it’s helpful :) It took a while for me too to internalize all this. And I still have a lot to learn.

Comments

[eroche]

I hadn't thought about the linked value like you described. I understand that the system adjusts how many SBD are created if the ratio of Steem to SBD goes over 10%. I am not sure how this factors into the equation.

[dragosroua]

the system adjusts how many SBD are created if the ratio of Steem to SBD goes over 10%

AFAIK it's not the "system" but the price feed bias set up by witnesses. Initially it was 5%.

If it ever gets to 100% then we will get STEEM by an SBD proxy. Much like people who will trade Bitcoin futures will never hold Bitcoin, but a contract about Bitcoin.