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RE: Thought Experiment: What would be the effect of crazy-high SBD interest?

in Suggestions Club5 months ago

To be honest, your proposal does not give me peace 🙂. The temptation to give investors their profits while saving them from having to post tons of crap every day is very tempting. By cleaning the blockchain of overrated posts, we would make it more attractive.

So, let's say the community decided that interest would be paid on SBD. What should they be?

Most probably believe that it should be a small interest so as not to significantly increase inflation. Yes, inflation is bad. But a small interest will not attract anyone.

On the other hand, a large interest may attract many investors, but cause too much inflation. We know of some DeFi projects that offered crazy interest rates and collapsed because of it. However, these DeFi projects no longer had any basis other than large interest. Unlike them, Steem is a much more thorough project with its purpose, community and experience of passing incredible stress tests.

Since we need investors, I think we should give them what they want and buy the investment, so to speak.

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I honestly don't know what to think, especially when the price of STEEM is below the SBD print threshold again. It's tampering with a complex system that has a lot of moving pieces. But, I feel like the topic has been ignored for too long. That's why I keep kicking up the dust... 😉