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RE: Steem Dollar Stability Enhancements

in #steem8 years ago (edited)

I think these solutions are more complicated than they need to be. If holding Steem Dollars creates a problem for the network, the resolution is simple: Reduce the incentive to hold Steem Dollars.

How would this be accomplished?

As the percentage of (Steem Dollars/Market Cap) grows, gradually lower the interest rate. Do the opposite when that percentage is shrinking. In order for this to work, these interest rate changes must be highly transparent.

When you think about the function of an interest rate, it's encouraging savers when the interest rate is high and discouraging savers when the interest rate is low. I don't think it would be any different with the Steem Dollar. What do you think, Dan?

By the way, I'm not against having other safeguards in place, it's just that I think we can solve this with​ a simple floating interest rate.

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Variable interest rate shown in the interface is a good idea and may help much.