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RE: Thoughts on a Proposal to Buy and Burn STEEM using the DAO
I am pleased that this idea has not yet been dropped. I followed the earlier discussion with great interest.
I fully support the idea under a few side conditions (which are basically the same as @remlaps).
By starting with 100 SBD per day, the proposal does not reduce the DAO account balance, but as a test it makes perfect sense. In order to achieve a reduction, considerably more would have to be sold and burned. Whether this amount can still be covered by the internal market remains to be seen.
Of course, it is important that there is enough left over for development proposals such as that of the-gorilla. However, with the current daily available amount of around 45T SBD, there is still enough.
Yes, roughly 2,400 new SBDs flow into the DAO daily. We won't start eating into that 4.6 million SBDs until we start burning more than are created each day. As you alluded to we need to do significantly more before we have to worry about depleting the DAO for other projects.
Three forces may drive down the number of SBDs flowing in every day:
On the other hand, if the STEEM price goes up, that means that there are less STEEM per SBD, so that would drive the number of daily SBDs up.
So, depending on how things play out, 2400 could eventually be well above or well below the daily distribution into the SPS. (and that ignores the discussion of SBD interest rates, which might also pump SBDs into the SPS)
But yeah, to make a large reduction at today's values, it would probably need to be much larger. I'm happy with easing into it.
Yes good point, though assuming this thing runs for years and years may be a bit presumptive. :) It will be interesting to see how market forces react.