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RE: Witness Update - SBDs, Meetups, and More!
This is very interesting and one of the best posts I've seen explaining how it all works. I don't have time to read the whitepaper, so I was vBtery happy when @mellofello forwarded me this link.
Between your post explanation and the comments and answers, a few light bulbs have been turned on. I am saving it for later tonight to let it sink in more, but I wanted to thank you for taking the time to explain what is happening and how it works @yabapmatt!
Awesome! Really glad to have helped. Feel free to reach out if you have any questions or need help with anything!
@yabapmattplease i need such assistance, need your help to promote my posts here
Thank you very much for taking the time to reply to me, that is very cool of you! Andy and Mello said you were a great guy and you really motivated them!
If you have time and can elaborate on this one section, I would love to understand what you are thinking:
I think it means that the objective of the witnesses would be to get the SBD price to the $1 mark and I understand how it is possible to push the price down by "adding more SBDs" ie flooding the market. But it appears that you are going the other way and slowing down the rate of excess SBDs coming into the system (from 250% to 50% means less printed, right?) Also will you advocate going back to printing more SBDs if the price of SBDs goes up again?
And when you talk about the conversion of STEEM to SBD... I am aware of the mechanics throught the exchange (which is not affecting the overall supply of either), so does this refer to some mechanism where you would increase SBD and retire STEEM from the market?
I know that is a lot to ask of someone that is very busy, so thank you in advance for any explanation that you can give.
Thanks again and nice to meet you @yabapmatt :)
Hey Dave and @beeyou.
Glad to see you guys know @yabapmatt as well, he's a top notch guy :D
I can see that @spiritualmax! I'm learning a lot from him too... I hope you had a good weekend and how is the game going?
Hey I'm really sorry I didn't respond to this sooner, it got lost in a sea of other things - but better late than never!
Under normal circumstances the price feed bias should be 0. So I had it set to 300% which is a LOT when SBD prices were off the charts, and now as they are getting closer to the intended peg i've lowered it to 50% which means i still support printing extra, but not so much extra.
Yes since I believe it's important to try to keep it pegged at $1.
Yes I'm not talking about the internal market which is just trading STEEM and SBDs among users. There is currently a system in place where you can trade SBDs for $1 worth of STEEM, in which case the SBDs traded are "burned" and removed from the system entirely.
In order to fully peg SBD to $1 USD I support a proposal to also allow "burning" $1 worth of STEEM in return for 1 SBD, with some limits imposed to manage the debt ratio.
Hope that answers your questions!
First of all thank you very much for taking the time to answer this... And no worries that you almost missed it as I know you are busy. I think I understand, but if you don't mind confirming I got it right that would be great.
You have a mechanism in place that would allow you to buy steem and issue sbd on a 1 sbd to $1 of liquid steem basis. Therefore (if true) you theoretically can increase the supply of sbd to whatever is necessary to keep the price manageable and the consequence will be a reduction in the amount of steem outstanding.
I think I have it right and it makes sense as to how that could manage the price. I appreciate the lesson and the time. Also thank you for your support of #newbieresteemday post by @bashadow... He is a great guy and that was a good thing to see! Take care and have a great week!