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RE: The Steem-Backed Dollar (SBD): Having your cake and eating it too
Yeah, they can burn it. Smooth has burned SBD and there are mechanisms in play that do so. But does Steemit actually enter that market? Wouldn't that make Steemit a market maker?
Maybe I'm just missing the boat. Wouldn't be the first time. :)
Some have proposed that Steemit simply burn a percentage of the Steem it's holding in order to decrease its market share as well as total supply, thereby increasing the value of Steem. It may be a great idea. But is Steemit actually in the business of buying/selling SBD/Steem?
No, you are not missing the boat. You are correct in that Steemit is NOT "actually in the business of buying/selling SBD/Steem" -- it is the operation of the blockchain itself that creates and assigns new SBD/Steem.