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RE: Lower debt ratio with conversion of SBD?
Another interesting side-effect that I hadn't previously considered is that converting from SBD to STEEM would also reduce the range of variability in the virtual_supply that results from STEEM price changes, which would tighten the boundaries around the possibilities for future rates of daily STEEM production (when the STEEM price is above the haircut threshold).
Oh yes... and we will see today another descent of the median price.
0.00 SBD,
0.37 STEEM,
0.37 SP
Median price, or haircut price?
This surprises me. I don't understand it, at all...
Something to do with SBDs being externally priced below a dollar plus conversion activity, I guess. But that's nothing like the way I was expecting it to work.
Unfortunately, I also don't expect to have much time to look at it in the near future. Hopefully I'll understand better before my next inflation post....
0.00 SBD,
0.39 STEEM,
0.39 SP
Currently both ;-) ...otherwise haircut price.
I had expected that. I had noticed that when I was researching my post. However, I would have expected at most a block delay until the debt ratio was back at 10%. But it obviously takes longer... I still don't understand why.
The next big convert will be filled in around an hour: https://steemworld.org/block/92968710/92968710-6
0.00 SBD,
0.70 STEEM,
0.70 SP
Fascinating. The SBD supply has declined by about 20% in a day and a half, and the haircut threshold has dropped by about 23%. I don't know how many conversions are still waiting to complete, but it will definitely be interesting to see what everything looks like when things settle down again.
0.00 SBD,
0.40 STEEM,
0.40 SP
Crazy! Moreover, the haircut price is already very close to the (real) median price...
My data source was steemdb.io: https://steemdb.io/labs/conversions
0.00 SBD,
0.35 STEEM,
0.35 SP
So far, STEEM trading volume looks a bit elevated, but it's not a huge increase by historical standards. I guess the volume of STEEM that left for exchanges is still a fairly low percentage, only around 2% or so.
Here are some graphs from the info in the steemdb.io page. Basically, it appears that 5 accounts cover a large majority of the conversion activity, and things have mostly settled down now.
As an aside: I think it might make sense for people to support the Reduced Inflation Proposal when SBDs are below $1 and the STEEM price is below the haircut threshold(?). No multikey magic needed to just burn SBDs.
0.00 SBD,
0.50 STEEM,
0.50 SP
I can't quite classify it all yet in terms of the market impact. I suggested among the witnesses that we consider whether we should take appropriate measures. It's just difficult to judge what measures would really be effective at the moment. I describe this as unhealthy markets at the moment (deposits and withdrawals are suspended on various exchanges, trading pairs are cancelled...).
But thanks for pointing out the proposal. That would currently be a third option for action besides the price feed bias and interest payments on SBD.
If you have any links to posts where I can get additional information about the witnesses' measures, I am always grateful.
0.00 SBD,
0.33 STEEM,
0.33 SP
I don't recall ever seeing anything about the effects of price feed bias, except maybe a small mention in the whitepaper. I'm not really a fan of experimenting with that. I have some family obligations, so can't spend time researching for a while, unfortunately. Can only comment from cell phone.
Of the three, I think a burn proposal would be most effective - as long as STEEM is below the haircut threshold. It might make sense to create multiple proposals (100, 500, 5000, 10k,...) so that stakeholders could dynamically adjust the size of the daily burn.
On the other side, paying SBD interest might encourage exchanges to offer SBDs... The objection was that exchanges benefit most, but maybe that's a feature...
0.00 SBD,
0.54 STEEM,
0.54 SP
I just hope we're not going to see a lot of selling pressure on STEEM after all those conversions. No idea what to expect.