You are viewing a single comment's thread from:
RE: Steem's Design Is Beautiful, And You're %$#!ing It...
To be quite honest, I don't care if we get rid of SBD altogether, as it's kinda pointless when it isn't even worth 1 dollar! 🤷♂️
To be quite honest, I don't care if we get rid of SBD altogether, as it's kinda pointless when it isn't even worth 1 dollar! 🤷♂️
I think that SBD would be useful and beneficial to the price of STEEM if it was designed like MakerDAO's DAI. I believe a blockchain having a built-in stablecoin is a very good thing, but it must be designed right.
The reason why a blockchain can benefit from a stablecoin is because the harsh reality is that crypto prices are too speculative and wildly fluctuating in order to base a solid economy around them. Good crypto is commodity money, and its better to have a stablecoin you can spend that is backed by the commodity asset.
SBD does not work because it is based on STEEM inflation unlike DAI's collateral-based stability. This model is unhealthy because its really just a reiteration of fiat currency and traditional central bank policy. The DAI stablecoin keeps its peg because when the debt is not paid back MKR holders and the person that took put up collateral get hurt.
SBD is really not based off of anything but a promise of minted STEEM at some point in the future. It's poorly designed, but it could be redesigned to be a great feature of Steem.