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RE: Thoughts on a Proposal to Buy and Burn STEEM using the DAO

in #steem4 months ago

While i am not against the proposal, and strongly believe that we need to do something to STEEM . to keep up the momentum. below is my statement on this proposal.
"Providing SBD to a single user from the Steem DAO to sell for STEEM and subsequently burn the STEEM introduces several technical concerns. The large-scale conversion of SBD to STEEM can create significant market volatility, disrupting liquidity and causing unpredictable price swings. This action may lead to slippage, where the user receives less value for SBD due to insufficient market depth. Furthermore, burning STEEM removes it from circulation, reducing the available supply which, while potentially increasing scarcity, can also distort natural economic incentives and affect the inflation rate. The concentration of such transactions through a single user increases the risk of market manipulation and could undermine the decentralized nature of the Steem ecosystem, ultimately affecting the stability and perceived fairness of the platform." .
This will need more study, and if multi-key cannot be implemented then i would like to request that @steemchiller takes lead on this project, I believe nobody else is honest enough to be trusted for such project. I am with a Big NO , if someone else is doing this.

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Selling SBD to burn STEEM offers multiple benefits that enhance the value, stability, and attractiveness of the Steemit platform. By reducing the supply of STEEM, stabilizing SBD, encouraging long-term investment, and fostering community engagement, this strategy supports the overall health and sustainability of the ecosystem. As Steemit continues to evolve, such proactive economic management will be key to its success and longevity in the dynamic world of blockchain technology.

The sales will be done using 100 SBDs initially for testing which have little to no effect on the markets. Once that number is ramped up to 2,400 per day it will be done on an hourly basis ( roughly 100 sbds per hour per my understanding) and not all at once. There are several teams creating liquidity on the internal market currently, one of which informed us that it would be no problem to sell the 2,400 per day...