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RE: Attention SBD Converters: Please Read - Important Information about SBD -> STEEM Conversions

in #sbd • 8 years ago

No, the price on the internal market is based on whatever market participants are willing to buy/sell at.

The blockchain has it's own internal price, which is different than the internal market price. The blockchain price is used to determine the amount of STEEM that SBD conversions produce, as well as how much SBD to pay out for author rewards. This price is set by the witness price feeds.

8 years ago in #sbd by
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     8 years ago (edited)

    The blockchain price is used to determine the amount of STEEM that SBD conversions produce

    The conversions between STEEM and SBD happen on the internal market and are based on the price of STEEM which would mean that the price of STEEM on internal market is set by witnesses. Are there other internal conversions that I'm not aware of?

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       8 years ago 

      I think you are confused. There are two completely separate prices:

      Price 1: The internal market price, set by the buying and selling of STEEM/SBD.
      Price 2: The internal blockchain price, set by the witnesses price feeds.

      There is also a difference between "converting" SBD to STEEM (done through the wallet, and takes 3.5 days), and "trading/exchanging" SBD for STEEM (done through the internal market, or through an external exchange).

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       8 years ago (edited)

      Thanks for clearing this up for me. Just to make sure I understood properly, the STEEM price set by witnesses has no influence on STEEM market price, it is just an internal price to do conversions correct?