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RE: Is SBD back in the Reward System? - Understanding the Determinants
First, thank you for giving an extensive expaknation about SBD. Secondly, are you saying if the SBD price is not maintained, there's a high chance it will be stopoed again?
It's the price of STEEM we are concerned about. SBD still maintains a $1 peg in the heart of the Steem blockchain as such we only care about its supply in the calculation of the debt ratio.
There is a possibility. We have seen the SBD print rate slip forth and back over the last few days which shows how the market price of STEEM has an effect in this context.
For example, two days ago when I first made my calculation, the debt ratio was around 8.8%, bringing it below 9% which enables SBD to print at 100%. At that time, STEEM was trading around $0.29.
If you observed the highlighted period, STEEM wasn't reflecting on pending rewards. STEEM price is slightly lower compared to what it was 2 days ago, the debt ratio is now >9% such that SBD now prints at a percentage while the remaining is paid in STEEM.
This is a reason we have STEEM showing up on rewards as of today. This tells you how the price of STEEM can affect the debt ratio that determines the SBD print rate over time.
Now, imagine STEEM at $0.2. I know you don't wanna imagine that, no one wants to 😂 .
I hope it's clear enough now. Thanks for reading, @yuceetoria.
It's much clearer now, thank you Sir @frequantum.
I'm glad it's simplified now. You are welcome.