Is there a way I can really understand the debt/ownership ratio? Is it a general blockchain issue or it is user dependent?
You are viewing a single comment's thread from:
Is there a way I can really understand the debt/ownership ratio? Is it a general blockchain issue or it is user dependent?
Debt to ownership refers to the ratio between the existing STEEM supply and the existing SBD supply. SBD is actually a debt instrument, and the debt is denominated in STEEM. SBD is not backed by real dollars, but by "$1 worth of STEEM". So every time you print SBD you increase the debt pressure on STEEM.
Oh I get it now. The system is being controlled so that debt does not exceed ownership. That's a wise one.