Well I suspect that the witnesses will lower the interest rate to 0, which will make holding SBD unattractive. A 2% interest rate would be enough to make me dump my SBD and power them up. (So it's close for me already.)
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Almost everyone in the witness leaderboard has got negative interest rates already. You know what, that number is meaningless. It's the rate at which the witness will perform the "Convert to Steem/SBD" operation. It's nothing to do with the algorithm that chooses how to split the rewards, and all SBD starts as a reward.
Meanwhile, everyone just exchanges Steem and SBD on the market. Mostly towards SBD, as the price keeps going down. The price goes up, then the SBD sells steem, driving the price down to hold the peg.
It's like putting sheep and wolves in a pen with each other and expecting the productive (steem) to not be eaten by the consumptive (SBD).
For the record, I'd be totally fine with Steem Silver Ounces rather than Steem USD. Golos uses grams of gold rather than SBD (or Steem Based Rubles for that matter.) which I think is cool.
I don't have a problem with SBD per se. Just that it should not be issued alongside (and at equal amounts, generally) to Steem.
I think derivatives should not be part of the monetary base of a blockchain currency, period. The reasons for SP are pretty simple and obvious, but SBD, it should be something you have to choose not something that is dished out every time you get a reward. This keeps the supply in a lock with the supply of Steem which means the fenced off area with wolves and sheeps. There should be a fence between Steem and SBD, or, you get what we see in the price chart.
I think I remember seeing a comment from Dan a while back that they have contingency plans to move SBD's anchor to silver if dollar inflation gets out of hand.
Huh? I don't see that at all. There is not a single negative interest rate in the top 19. Are you sure you are not looking at "Bias"?
I'm not even sure how to actually set a negative interest rate on it. I am going to tinker with that a bit later today. My bias is set to -10%. I just hate USD and anything resembling it, for very many reasons I don't think I have to explain to most people here (even if they still are deluded that you can even save USD at all).
No, it does not allow negative interest:
unlocked >>> update_witness "l0k1" "https://steemit.com/witness-category/@l0k1/witness-update-jan-31-2017" "STM7Cw11iPPnXewfPbA3Jso7RSar67pMcVGpPi7v1uvo29jm1YPLV" {"account_creation_fee":"10.000 STEEM","maximum_block_size":65536,"sbd_interest_rate":-0010} true ... 10 assert_exception: Assert Exception sbd_interest_rate <= STEEMIT_100_PERCENT: {} th_a steem_operations.hpp:388 validateYou also bring up a good point: SBD is actually a better asset than the USD. The USD has negative interest rates on it (inflation) and they passed the ZIRP through the looking glass into la la land where they pay you to borrow the money and charge you to deposit. Or at least that's how banks are treating each other now. We are getting gouged on account fees and spreads as hard as they can.
This sounds like assumption. I would like to see data about that.