Witnesses - please raise your APR setting!
As you can see below, this is the lowest USD value for Steem Dollars on poloniex in the entire last year that I've been tracking their value .
View my custom indicator on tradingview
I've been broadcasting a preference of 2% for a few weeks already , and I see a few others now also suggesting an APR increase.
- @timcliff in position #3 is currently suggesting a conversative
0.5%APR - @liondani in position #6 suggests
5% - @pharesim at #7 suggests
10%
These are the current preferences for witnesses 1 through 26 :
If enough high ranking witnesses raise their APR, the network will begin to use an average APR value depending on everybody's votes and rank.
Taking into consideration that I'm currently only ranked #27 , and the current mix of preferences being broadcast I have decided to announce an interest rate of 5% instead of my previous 2%
I'd personally like to see the APR at an absolute max of 2% in use - this should be more then enough to attract interest. I'm voting higher then this purely to try to raise the average in response to the market.
If more witnesses raise their APR's, or I move way up the witness list more I will reduce my APR preference back to 2% maximum.
If this fails to raise interest in SBD, I will consider also implementing a price feed bias (resulting in better results via the convert function) but I will avoid this option for as long as possible.
I now have 1403 witness votes and I'm at rank # 26
Witness node operations
My witness node hasn't dropped a single block , no price feed issue or network glitches logged by my monitoring tools the entire time :)
- 0 missed blocks since my last update (38 ever) .
- I'm now witnessing an average of 55 blocks each day .
Seed Node Operations
My seed node is online with no issues since my last report.
It's available at seed.steemviz.com:2001 and it has been included in steemd seed notes.
You can check out the current steem seed node availability via status.steemnodes.com made by witness @wackou .
Price feed and current network parameters
- I publish an unbiased price feed - last update was $1.212 SBD / STEEM
- SBD interest rate changed to 5% - To increase SBD demand and maintain USD peg
- Account creation fee remains at 0.2 STEEM - attempting to reduce signup cost (info)
- Maximum block size remains at 65,536 - Bandwidth issues have subsided, I see no reason to raise this for now.
twitter / gab.ai / keybase / steemit.chat / patreon
steemviz / steemvids / more tools / post index
Please vote for me as a witness here
Update: I've updated my tradingview indicator code to use bittrex instead of poloniex and lowered my APR back to 2% .
The peg's holding fine if we ignore Poloniex, which I will be from now on.
Hi @ausbitbank - thanks for bringing more attention to this issue.
Currently the price is $0.9567 on Bittrex. This is not great (we want it to be within $.01 of $1 if possible) but $0.95 to $1.05 is generally considered an acceptable range. It is fairly normal for it to drop below $0.95 or above $1.05 temporary, usually due to large buy or sell orders, or dramatic shifts in the market. As long as it comes back 'into range' within a short amount of time, it is not a huge concern.
The whitepaper has this to say:
Changes to the interest rate policy and/or any premiums/discounts on the STEEM/SBD conversion rate should be a slow and measured response to long-term average deviations rather than attempting to respond to short-term market conditions.
A lot of us have been watching the medium/long terms very closely, and trying to calculate / decide what the right move is. It was actually very recently that we were in a situation where we were charging a premium on SBD conversions and talking about ways to push the price down. We are trying to avoid a "knee-jerk" reaction, and look more at what the medium/long-term trends are.
Another factor (unfortunately) is the lack of stability of the main exchanges. It is a separate issue, and one that needs to be dealt with, but it cannot be ignored that a large factor in the price of SBD is likely related to the fact that users are unable to reliably use the exchanges. It is questionable/debatable as to whether or not the witnesses want to adjust their APR policy based on the external factor of unstable exchanges. I don't know if there is a right/wrong answer here, but it is part of the debate.
I recently adjusted my interest to 0.5%, because I had started to notice a medium term trend of SBD frequently being at $0.95, with occasional dips below. I largely blame the exchanges, but my view is that if this is going to be the new 'norm', then we should probably factor this in to the price until they are stable again. I'm hoping the performance improvements the Steemit dev team blogged about will help with this. I have starting to feel that some interest is warranted, which is why I increased my APR to 0.5%. I know it is not much, and maybe it is not enough. It was mainly a signal to start having others look into possibly increasing theirs.
If we do see a prolonged/continued SBD price staying at an equilibrium closer to $0.95, where it rarely/infrequently is making it back to / above $1.00 USD, then I think we should definitely move back to having a small amount of APR interest again. I don't think 5% is necessary, even though SBD is 5% below $1. It doesn't always work out as a one-to-one effect. I would probably aim to start at 1-2% interest and see how it goes. If users are able to get a small amount of interest for buying/holding SBD again, it may be enough to supply the slight increase in demand that is needed to bring the peg back to $1 USD.
One last thing, just so folks have the info - the way SBD APR works is it pays in monthly intervals. If all of the witnesses increased their APR to 1% today, it would not pay out for another 30 days. At that point, users who had held SBD for 30 days would get their monthly portion of the 1% yearly interest. If witnesses don't keep the interest in place for at least a month, then no interest is paid. (This is another reason why it is important to use it as a reaction to longer term trends, rather than short-term market fluctuations.)
Thanks again for writing this post.
This comment should be in a post of its own 🙇
Where can I learn what this all is? I've been posting and using site for 3 days and have no idea how to really get involved.
The FAQ and Welcome page are good places to start.
@timcliff
i support with your comment 👌
Upvoted
@ausbitbank
Wonderful article 😍
Continue 👈
Great - The SBD is < 1$ for several weeks now. I think this is the right decision, thank you for that @ausbitbank :) +1
Half the problem is Poloniex anyway, ausbitbank. Even on Bittrex today, SBD is still 90 cents, which is cheap. I like to buy SBD below $1 for a trade, but part of the issue why I wont switch today is I wont get the ultra cheap rate on poloniex which I do not trust, since I may never be able to withdraw the funds. And 10% trade on Bittrex would be okay if the market were tanking, but it's rallying nicely so I'd rather just own the stuff going higher. Nice thing you're taking steps to try and keep the value in line with $1 USD. SBD would just do a lot better of poloniex closed shop or got its act together.
Just found you @ausbitbank, and your concern about raisind the APR value deserves my 100% upvote, my vote for you and repost ... that is all I can do right now... And keep up the good fight!!!
Hi @ausbitbank, I have voted for you as my witness.
Thanks
I am new to Steemit but posts like this are very helpful, keep up the great work @ausbitbank. I must confess this is way over my head but great to see people taking such an interest in ensuring Steemit is a success.
100% Upvote, Resteem and Follow from #teemnomad!
Going over to vote for you now.
you continue to reward my confidence in you.
You were one of the first witnesses I voted, long before I had any inkling of what a witness even does or anything.
I think maybe aggroed and then you, although those heady days, nearly a month ago were so confusing, that I can't be at all sure.
but well done and I am glad to support you with my vote
Sounds like a good plan, 2% is higher than most U$D accounts offer, (3% would generate more activity, IMO) but we don't want to get too "generous" and fall into the same trap as generated by the F'ed Reserve" system. I've been using my SBD as gifts and for vote-bots, but the savings option would be much more attractive if it actually gave a return! :D
F.U.R.R. For OZ-Bit!
Voted for you based on your position about apr. Thank you from a minnow who does not quite understand what is going on now :)
We're with her @fitinfun on steemit ♨
Awesome, good to see someone has an eye on things!
I still don't understand this, but when I was selling off some SBD to put on my card, there was someone (s) on there selling blocks of 2500 SBD... there were 3 in the time it took me to sell 100.
Which exchange was this ?
Bittrex
Thank you for looking out for the community. I know you are working incredibly hard to protect our investment.
Poloniex and Bittrex had their wallet in maintenance for a while and it seems like with the increased selling pressure it has kept going down. I can't believe its got to $0.73
I thought most witnesses had a higher interest rate but I guess not. Thank you for your work @ausbitbank to restore the SBD peg
This post is for witnesses. I know that but would like to agree with @timcliff on most matters. 5 % APR does not seem unfair in the current market scenario which is prevailing since June this year.
You yourself said that if you move up, you'll lower your APR. I think that's ok. I don't know the technicalities if all the witnesses raise it to 5 % but Tim has made good deliberations on the topic.
I have voted @ausbitbank for witness and I request everyone to do the same.
Makes totally sense with the price evolution right now. I wondered when you (witnesses) will handling this topic. I researched some weeks ago on this topic of interest rates, which were active in the past.
The bottom of the price fall is not reached yet, so definitely a topic for the next months.
You had already my vote as witness. :-)
Thank you for always looking out for everyone's best interests. You're one hell of a Witness. I had cast my vote for you a while back. Resteeming this.
Just voted for you witness:) I understand really a few in cryptocuency, but hope SBD will be back on it's positions:)
Thanks @ausbitbank. This is very important. Steemians should pay attention to this when they vote for witnesses. Please reconsider your vote, if the witness you've voted for is missing a lot of blocks! You can check this data at steemd.com :]
Thank you for bringing attention to this very important issue. I had not checked the SBD price in a few days and was shocked to see it had fallen so low. This is yet another reason you already have my witness vote. Keep up the great work!
This post has been resteemed by @msp-shanehug courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.
Upvoting this comment will help support @minnowsupport.
TY @ausbitbank changes to witnesses made!
Amazing Post! Upvoted and Resteemed Followed you!
Wow, sir thank you so much. I also want to setup witness for steem network. But the problem is how to do that and what are the requirments.
Running witness and seed nodes can be quite complicated technically and will not be profitable unless you can raise quite a lot of support. I was a user and developer on the network for almost a year before beginning my campaign..
If you're unable to google the first steps it doesn't bode well for your ability to maintain a reliable service or your commitment to this idea..
Yeah dude being a witness isn't something you just ask for people to tell you how to do smh
wow !! Thank you @ausbitbank
The SBD is < 1$ for several weeks now.
I think this is the right decision...
Oh my god
nice
Only a witness can raise his interest?
The top 20 witnesses sets the overall network interest. It has nothing to do with their own interest.
If one witness sets it to 20% it doesn't make any change, but if all 20 top witnesses sets it to 5% it will make the network use 5% as the new standard.
You can see the current consensus variables on https://www.steemdb.com on the right side.
I thought that with new version interest is only on steem- my fault.
Do we need to hold SBD just in our accounts or shift them to savings to get any interest?
is the current rate 6.8% for steem and SBD? if yes why does it always show collecting 0% APR
At the moment the interest is 0%
When there is interest, it will say so in the wallet on your account, and there is no difference if they are in your savings account or your direct access account. The interest set by the witnesses is only for SBD.
Interest for STEEM is set in another way.
SBD Interest values can be found in the table labeled
Consensus State.Here you have
Account Creation Fee,Maximum Block SizeandSBD Interest RateWhat does one need to do to get to witness status?
Why do you think this value is falling now? Is it because too much money is leaving the system or another reason?
I think most of alt coins are falling because of bitcoin going up, many are selling their coins to get some bitcoin
I hope you are right. I get the idea people are dropping off the plan here but I am new so it is hard to tell.
Do not worry too much. The normal way things go are that all altcoins go down when Bitcoin goes up because people are selling altcoins for Bitcoin. Then when Bitcoin tops out and starts going down a bit.. this is because people are selling their Bitcoins at highest price and taking profits. Usually what happens next is that when Bitcoin goes down, altcoins go up again, because these profits from Bitcoin will be reinvested in the altcoins. If Bitcoin goes up 10%, I expect altcoins to go up 20% in the days coming after (assuming you have good altcoins).
Don't go switching altcoins for Bitcoin now... If you wanted to do this you should have done so yesterday or the day before. Right now it's better to stick with your altcoin such as STEEM and wait for the profits to flow from BTC into alts, and enjoy the ride.
TBH I don't know if Steem will benefit as much as other altcoins. I feel like the STEEM price has not been benefitting all that much lately from price increases. I suspect this has to do with an increasing number of people who are losing faith, because Steemit has big problems with bot-voting and financial-voting (as opposed to qualitycontent-voting).
Well, I do not really get this since I am new to crypto, but it seems like all the currencies should rise with bitcoin. I'm concerned why steem is bucking the trend.
And this:
"increasing number of people who are losing faith, because Steemit has big problems with bot-voting and financial-voting (as opposed to qualitycontent-voting)."
I totally agree with you. btw - finally went into steemchat to promote my posts in there for the first time and now have 2 guys begging for upvotes!
Just a little frustrated - I should go to sleep now :) I have no money to invest or sell - I am here to promote my content.
It's easy.. When you are on an exchange and have money in STEEM and it is currently not going up, but Bitcoin IS, then what do you do perhaps? Well, sell some STEEM and get some Bitcoin, make 5% profit and then buy back into STEEM and have 5% more STEEM than what you begin with.
This process takes a little while and is currently ongoing. Pretty much all crypto's are declining at this moment because of it. Once Bitcoin starts to dip bigly, I feel like this could happen any moment now, you will see altcoins rising a day after or so (give people a while for them to figure out where to best invest their newly earned profits).
In any case, if you sell STEEM now to buy into Bitcoin I think you will end up a loser. For the moment, I'd suggest to just HODL! Or switch to another altcoin if you believe that has a better chance of gaining than STEEM.
Well, I have nothing to sell or buy lol. But if all the "little" currencies are acting the same like steem - then I feel better. If steem is going down and the others go up - then I worry.
Hello @ausbitbank, is this the only reason for the drop in value for SBD? Are there any other factors that is affecting it! I would like to understand a little more as I am really very new here!
Thank you!
The value of the SBD keeps shrinking and by reading to your article it seems that only the witness are able to increase the interest to get the SBD back on track.
Kinda sad to see it fall I thought there was hope left to see a rise . Maybe Steem will do that job
Hi,
i resteemed ur post sir
I wish I could understand much more of this. Still haven't been able to set up a witness server.
Finally good to see someone stood up for it i hope Sbd price gets close to 1$
Nice @ausbitbank...
Regards you @ausbitbank..
i will Vote, follow and resteem u post @ausbitbank
thank @sultan-aceh
Yes please
We need a fix.
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Upvoting this comment will help support @minnowsupport.
This post has been resteemed by @minnowsupport courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.
Upvoting this comment will help support @minnowsupport.
This post has been resteemed by @msp-lovebot courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.
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@ausbitbank,
I would also suggest reducing supply by changing payouts to STEEM instead of SBD for a couple weeks. There is still no significant demand signal for SBD therefore we have built up an oversupply.
This could not be done without changing the way the blockchain works via a hardfork.
Buen post amgio.
Te sigo
Obviously someone is doing something wrong...
thanks for sharing this information with us
great post keep it up..!!
Great information. Thank you.
Great report that you made!
Voting for Witness!!
Thank you for all the hard work that you are doing!
FOLOW ME AND GET UPVOTE EVERYDAY WITH GOOD COMPANY.EARN TOGETHER