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RE: Another Puzzle: Why is the blockchain's reported median price higher than the actual price of STEEM?
I guess the point is that the "current_median_history" value is not really a median, but rather that this was a kluge that was used to depeg the SBD, so that conversion from SBD to STEEM pays less than 1 SBD when the SBD market cap is higher than 10% of the STEEM market cap?
Yes, this is my understanding, this is how the "haircut rule" was implemented. Basically this "median price" is only used for SBD->STEEM conversion operations, so they put a max value in there. At one point I hunted through the code to try to figure out how the haircut rule worked and I have this comment in one of my scripts explaining how to get the number:
Haircut rule: What would the price be if 9X of all SBDs bought all the STEEM?
I knew about the haircut rule, but didn't realize that this was how they had implemented it. I did the calculation in one of my scripts (which is how I first noticed the discrepancy), and it gives back the same answer by a different method (cross multiplication using numbers of token in circulation):
Calculated like this:
I would say that without the restriction of the median_price, the (current) haircut rule would not make sense. But the two mechanisms work independently of each other. As e.g. the earlier limits (printing reduction between 2 and 5 %) have shown.