Well, there it is.

in #steem6 years ago (edited)

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When it was at $10/SBD, It was like trying to take away the crack pipe from an addict...not a good idea.

now that's it close to $1, I'm in for a 2-way peg or getting rid of it entirely.

I think that makes sense. But I hate getting rid of it, however if were cannot fix it then I believe getting rid of it is better.

It will help however to focus on one goal vs two, so I think everyone should advocate for giving witnesses tools to ensure the peg or allowing it to buy at some premium.

I'm in for a 2-way peg or getting rid of it entirely.

Look, the creation of an intermediate token for the absorption of emissions (payments to authors) is very beneficial for the algorithm. Because the speculators take it for accumulation and the subsequent pumps. The number of SBDs is very small compared to the main token, and this makes it very attractive for speculation. Thus. the issue is taken away from you free of charge, + it is nice sometimes to see SBD at 5-10 dollars for PR.

If you remove SBD, you will have to buy emission from author payments, as speculators are less interested in this because of the huge amount of Steem coins. It is much harder to raise it, which means that we will receive constant pressure on the price of the token, which is not very popular already.

I would beg that advertising a token to be worth $1 and then it doesn't perform as advertised is bad PR telling the world that our tech doesn't work as intended. It's nice for authors, but for anyone out there looking who doesn't know what SBDs are, it's bad. The new people don't understand that nuance and then are left puzzled.

I would beg that advertising a token to be worth $1 and then it doesn't perform as advertised is bad PR telling the world that our tech doesn't work as intended.

Simply advertise SBD as a token, which can be guaranteed to be exchanged for 1 dollar in Steemit, and on the external exchange it can cost 5, 10, 18 dollars))) This is much better than just a 1 dollar, as for investors (which enter SP only for selling upvotes) , and for authors. Simply, higher ROI.

The new people don't understand that nuance and then are left puzzled.

Can't agree. New people here do not need to anyone with their texts, they only needed for their money to buy tokens. And if people invest money, they will sort out all the nuances, and certainly will be happy with the high rate of SBD.

In any case, removing SBD will significantly increase the load on the main token, and it will fall more quickly, and grow more slowly. It is necessary to understand that the economy of Steemit is completely leaky, and only speculators on the stock exchange can fix its holes. SBD gorgeous pump and dump token. It is really bought up by speculators and sterilizes emission. For me, it's hard to come up with a more idiotic solution than to kill SBD.

But I'm not really worried about Steemit anymore, then what happens to the SBD will only accelerate its departure from the top 100.

agreed on the PR point and I work in PR since over 18 years

Exactly. Even seasoned authors don't get it, they just say thank you.

Exactly. Even
Seasoned authors don't get it,
They just say thank you.

                 - jefpatat


I'm a bot. I detect haiku.

100% agree with you on that comment.

I kind of like it here. Account growth atm is sped up 4-5 times. In the end that should be the goal.
Steem will hit, 5-10 USD in 6-12 months so its kind of a good thing prices are low if you arent looking to cash out. My last upload will make me more SP then my last 5 uploads combined when the prices were double this.
Its kind of weird that everything is worth less but you get more of what you need for growth.

How much high did it go...Can you tell me how this steempower works.

then we should not sell it anyway.

I'm in favor of a 2-way peg.

Right now, the blockchain allows you to convert each SBD for $1.00 worth of Steem. This creates arbitrage opportunities when the price of SBD falls below $1.00, and this profit motive drives the price of SBD back up to $1.00. However, there has never been a similar downward pressure on the price when SBD is trading above $1.00. This is a one-way peg.

If we changed the blockchain code to allow people to convert a dollar's worth of Steem into 1 SBD, that would also create an arbitrage opportunity. When the price of SBD exceeded $1.00, people would convert their Steem into SBD and sell the SBD. This would create downward pressure on the price. When you add this element, it turns into a 2-way peg, which should do a much better job of keeping the SBD price around $1.00.

#cryptoctopus IT WAS REALLY $10/SBD??? I AM REALLY SHOCKED. I would pray that it comes to that again.

It went as high as $12... happy days.

Cg

I remember the days makeup tutorial videos and travel vlogs would make 30k a post.

SBD is not pegged anymore to USD, pegging it was the ability to exchange it automatically to $1 worth of steem, and i don't see that option available anymore.

It was users misconception that led SBD price to go up, while it shouldn't, why would you pay for something i offer you a price more than what i am telling you it worth?

i am with the pegged price, i believe it's very important for users who does not like volatility, and it's good for them to know their savings or earnings are somehow safe

That would be very difficult. The price feed peg turned out to be useless.

it worked out for 2 years and it's a proven concept, i disagree with you and it's definitely not useless.

When SBD is worth more than $1.00 it acts as an amplifier for post rewards, making them much larger than normal. This is great for getting new users on the platform and the side of effect of encouraging spam.

My take on SBD is that it distorts how much liquid rewards are paid out on each post rather than amplifying post rewards.

I think this is detrimental at a fundamental level as it just encourages people to cash out their stake rather than locking it up a portion of earnings for some period of time and actually having stake in the platform to incentivise behaviour.


Back to the question do we need SBD or does it just complicate the Steem Ecosystem?
If we can first agree it is a good idea to have a stable asset, then we can discuss how to make it work, but without first agreeing on this premise we just keep going around in circles.

For the record I think a stable asset is a great idea if we ever hope to attract large numbers of people to the platform.

And think about it, if Steemit & co is only there so that you can "make money with your posts" and nothing else, then people are going to keep coming in, doing that, and selling STEEM on the exchanges since that is actually what "making money" entails. Then the price will forever be slipping because why would anyone actually buy it?

Great point, so many people here get hooked on making money and forget this.

The promise of Steem in the beginning was an alternative to the advertising fueled model for social media (as well as a censorship resistant medium). But if people wish to cash out, the fiat money has to come from somewhere and without some form of commerce or utility that only leaves speculation.
For that reason I think it's vital we have an feature to support commerce on the platform. The single most important feature I think is a "stable" asset such as SBD.

Where we can achieve a stable asset or not is an entirely different question.

yet SBD is currently not stable...

Nothing in this existence is "stable" lol

@metama Do you really think SBD fall down even more?

It's definitely possible. If btc drops more, steem most likely will and and will follow

Posted using Partiko Android

@metama Thanks for your best opinion

Nice assessment.

Re: "We have already shown we are not very good at keeping new users with a user retention rate of 5-8% at best. "

If by "user retention" we mean account continued activity, there are a lot of factors to contemplate,
one of them is, of course, what kind of users are being attracted to steemit and what are their intentions towards the platform.

In an environment where a large fraction of incoming users are here to abuse the platform a low "user retention rate" is appropriate, it means the abusers are being worn down and driven out by one mean or another.

I mean, those abusing users that cleaners (including yourself of course) hunt, and then end up leaving the platform are a part of the "user retention rate".

In short, in my opinion the onboarding process should focus on onboarding actual quality content producers instead of bodies with a pulse.

Regards,
Walden

@walden do you thinh STM willgo down more?

When you look at it as there can only be two variables, "quality content producers" and "abusers" you see where the retention problem lays, Steemit doesn't offer, want or promote anything in between, I don't know what the "inbetween-er" percentage is but my guess it's the vast majority on the internet supporting the popularity and growth of many, many sites.

Oh, I dont look at it in a black and white fashion, I see the whole spectrum of greys,
and when I say abusers, I mean hardcore abusers, serial plagiarists, spammers, ID theft, etc

PS. in your example there is one binary/boolean variable, not two.

except it's not this at all. The 5-8% of users, are the people who abuse... or are just the top1% that we see on the front page, Every. Single. Day. Five. Times. A. Day.

I would says only 1% of those indicated retained users are abusers, or just use bid bots.

you have no clue what you are talking about.

such an insightful comment. Way to upvote yourself. Proves my point.

SBD is pegged in a way so that it doesn't go below 1 dollar. But the upper limit is not pegged. The price feed is generally set to 1$. That is not really a good way to peg a currency.

It went a to 0.97 USD but its reverted back.

Nice post! Steem and all cryptos to fall further before any real gains, so be patient. Some big time forces at play here and they're having fun. If you think crypto will survive in the long run then take advantage of these planned crashes and add to the bags. Of course that's if you can handle seeing more dips before rewards. :)

So sad

It will absolutely go back up when the markets go back up! It's been tracking with Steem through the whole drop. Give or take a few cents here or there.

Smooth will now have to power down the burnpost sell steem and purchase SBD to burn. haha.

When human's try to manipulate the markets it almost never goes well.

Well marky, obviously all of us Steem/SBD holders want to see the price of SBD go up, who doesnt like money? But the truth is that the best thing that can happen to SBD is that it gets pegged 1-1 to usd. Great example using steemmonsters, but let me put a better one :D

Lets say i sell tshirts, i want to sell a shirt to marky that says "MarkyMark Fan Club" at 10Bucks flat. You send me 10 SBD (unpegged 1-1) and it takes you 7 days to recieve the shirt cuz im 10000 miles away, during those 7 days SBD moves to 2 bucks a pop. You just paid 20 bucks for a 10 dolar shirt.
#PegSBDtoUSD

-Cheers

The exception to that is when:

  1. when your earnings are denominated in SBD and
  2. you are dealing in items which are exclusive to the steem blockchain, such as steemmonsters.

Indeed when buying something like steemmonsters, I have the choice of either:

  1. buying with fiat at a stable price by
    a. sending some euros to Bitstamp or Kraken
    b. buying BTC there
    c. sending the BTC to Binance or Bittrex
    d. exchange BTC to STEEM there
    e. send STEEM to steemit
    f. use STEEM directly to buy monsters through steemconnect
    OR
  2. use my regular SBD gains from posting to buy monsters directly with one click knowing that
    a. SBD is supposed to be pegged so even if exceptionally it can go for a time far above, it won't
    normally "moon" to make my cry for having spent it
    b. I'm continuously earning more SBD thus over a long period the SBD spent on monsters will be a
    small proportion of my holdings

I believe the SBD adds indeed complexity but if done right it adds stability and value to the platform. Rather than making them disappear, it would be better if witnesses got more tools to try and maintain the peg

Imposible to peg something like SBD to a FIAT value unless there is some smart contract available with collateral, so SBD would in turn need to be created as a smart contract, a great example is the pegged USD asset on the Bitshares exchange (Bit.usd)

Which uses a smart contract and holds BTS as collateral to maintan the price with the slightest of variations being it 1usd-1.05/0.95 bit.usd spread at most.

I agree perfect pegs are almost impossible to achieve - but one can add efficient mechanism to try to approach a peg as well as possible. I reckon the current mechanism for pegging SBD while far from perfect is a good start. It pegs pretty well on the downside. Add some automatic mechanism for SBD emmission when the price increases (to peg on the upside) and see how it goes.
It will already increase the velocity of SBD because people will hoard less (in the hope that it shoots for $10 again) and will spend it more freely.
That is the objective - to have SBD as a currency circulating inside the steem blockchain economy, with a value that people can relate to (~$1). And with "jobs" allowing people to earn SBD and "goods" such as steemmonsters allowing people to spend the earned SBD

I agree, just showing the most efficient way to peg an asset. :D

@themarkymark
all the crypto can again up and hit the market???

@themarkymark what will be the bottom of steem price in these bear market???

I answer that in great detail here

The answer is 42.

Hello mark,
Can you tell me how much time take to increase our steem market.

Thank you @mark.
I hope it's go moon as soon as...

nice, the topic is quite new for me. however I am really liking this and found it informative. i would be waiting for some more new posts of you.

Hello, 👍👍👍
you have a beautiful block. And nerpsya all with the course will be good.
It's a crypto currency))) 🔥 🔥 🔥

A beautiful what now?

Wow SBD back at $1? Massive fall since the bull market