Anywhere we can add in the virtual "sinks" to the economy would be a large benefit. I felt this was possibly a win win, because you're burning SBD to then vote on someone elses post, which in turn generates 50% SP and 50% SBD, investing someone else in the platform.
As a method to prop up value, this doesnt work. Value reduction happens on the demand side, not on the supply side. Like that 50K that they were talking about ned and dan selling in the promo section -- that 50K isnt what caused the price of steem to go lower. it was the fact that all the buyers for it we'rent willing to pay current market value. If we hadn't seen the news when that 50K was sold, we would have seen it when the next 50K was. But the news was still the news even before we actually saw it.
A sink as you call it, trying to take money out of circulation to prevent devaluation, is like gluing shut the door of your mailbox because you think your girlfriend broke up with you and sent your a dear john letter. You not getting the letter doesnt mean that she didnt break up with you. It just means that you havent gotten the news.
Can't the argument be made in both directions though?
Upvoted for the mailbox analogy, will give you an additional token if you reply to my question. Oh, wait...no tokens yet.
It can. IN the case of crypto currencies generally though, and in Steem's case in particular, i don't think the argument holds water in reverse, for a variety of reasons. I was going to answer more completely but decided its worth a post in and of itself.
hahah what a great analogy.
I don't know that I ever meant this to be a meant to prop up value, it's more of a way to reinvest it into the ecosystem itself. What other purpose does SBD have now? Not an incredible amount. This would at least encourage circulation and be somewhat of a game mechanic.