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RE: Saving SBD - Proposal to Restore the $1 USD / $1 SBD Peg
I don't think we should be playing the role of central banker by trying to manipulate the currency to our desired target. Rather, I believe we should let the market work and it will eventually find what it determines is a fair price.
That's a valid philosophy but it isn't what SBD is.
SBD is a managed pegged asset. It is essentially managed by people who are not literally central bankers but metaphorically are in that they perform similar functions, as described in the Steem white paper (for example, setting interest rate policy). It literally isn't possible to avoid doing so because there is an interest rate parameter and a decision must be made what value it should take (potentially including 0%).
In fact, the interest rate on SBD can even be negative to uphold the peg if needed. This may help to get the peg back to 1:1 quite rapidly.
It could, in principle, but that function is not implemented in the Steem blockchain.
In the STEEM world, I agree with you 100% - but that was not the intention behind SBD. Based on what is in the whitepaper, the intention of SBD was for it to be a stable currency, and the blockchain is designed to allow 'manipulation' with the intention of 1. holding the peg, and 2. honoring the 'approximately 1 USD worth of STEEM' contract via conversions.
Surprised this isn't in roadmap suggestions unless I've missed it...
SBD well over $2 now.
I could be wrong on that but I feel like the price is pumping because people want to invest in steem but they don't want to buy a currency where the whitepaper said there is 100% inflation.
Even in our own community people still believe steem is hyperinflationnary.
Imo it was very bad to the price to not update this whitepaper, the damage has been done now...and steem will need some solid PR/marketing to reinform people on this currency.
It would be really nice to be able to push the price of steem up when SBD is pumping, to me that's logical since they are inextricably linked.
It should have been. SBD had been pegged slightly below $1 USD for so long, that it wasn't on the radar. Unfortunately the post is past 7 days old.. There are other avenues for getting changes on the dev team's radar. With the SBD peg way off again, this idea is getting more attention. We'll see if it becomes enough of a priority to justify dev work.
@shenanigator
I would tend to agree with you because that is the whole point of cryptocurrency, in my opinion. Free markets, less control without a central bank equals a more fair system and community!
Yes and that is why STEEM is the currency. SBD is a pegged asset, not a crypto currency.
@justtryme90
Makes a lot of sense! I appreciate your thoughts on this issue.
That's silly. STEEM and SBD were born from human beings that designed the system. So there is actually full manipulation from its inception. If such inception is projected to give bad outcomes, it must be corrected for the sake of the investment people has made on it. There is no escape to manipulation, since it was already manipulated by its human creators. Markets can go wrong. Good thing is that changing the protocol is sort of democratic/elitist so I have no doubt it won't do any silly changes (hopefully)