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RE: What I'm Doing as A Witness to Fix the STEEM & SBD Value (what YOU should do too.. maybe)
Upvoted, but I don't actually agree with the idea of increasing SBD interest rates..
We're currently trying to lower the amount of SBD "debt" , and this would encourage SBD hoarding imo.
It would encourage people to hold. You're right.. But is retaining value on the network not worth reward?
As for SBD "debt" I'm not sure I follow you.. Care to TL;DR it?
Retaining value in Steem Power is what should be rewarded , this post from @timcliff (under heading "The SBD Debt Problem") explains it better then I could, but ..
TL;DR - If price continues to fall, big SBD holders cashing in will inflate the steem supply and create a feedback loop to push price down even further.
We also have measures in place that will break the SBD peg, making it even less desirable to hodl..
I think this possibility is already starting to be priced in over the last few days.
I don't know what the solution is - I'm mostly hoping new site and tech improvements, marketing efforts and steemfest hype help reverse the trend..
Hi @ausbitbank - I've actually talked this over with @kyle and @smooth in the witness and price channels and I support what they are doing. Raising the interest rate of SBD can be done in addition to what I was proposing in my post. (I suggested doing this in my post as well actually.)
There are actually multiple problems all trying to be solved at once. There are things that people can do which are better than others. For example, if you have STEEM, buying SBD is better than selling it on the exchange. Technically powering it up is even better than that, but it is relative :)
[Edit] To provide a better example, buying SBD, converting to STEEM and powering up is probably one of the best things that can be done. Buying SBD and holding is not as good, but it is better than selling on the exchange :)
Aah okay good to know, with so many variables its getting hard to understand what we're supposed to do to help..
Yeah, I know. I actually started by proposing that we make the interest rate negative (to encourage users to burn it like a hot potato) but @smooth talked me out of it in that it could create too much burning / downward pressure all at once.
I think @timcliff summed it up in his reply better than I can! Thank you Tim!
There are multiple things that need to be tweaked. This is just the start. :)