RE: Law of Supply and Demand Definition and Explanation OR Why the @sbdpotato experiment just won't work
I could say that lower volatility is a feature, not a function of SBD. And this the main reason SBD exist, and not only STEEM.
The issue here is that the majority of the community see sbd the wrong way, because there isn't a good and clean explanation about the blockchain economic model.
And this is where there is a lot of missed opportunity being missed to add value to the system as a whole, and project/experiments based on wrong premisses, like @sbdpotato keep appearing.
Damn, I even think that Steemit inc. don't actually understand what sbd function should be in the network. Maybe they didn't fully understood the white paper.
My hope here is that those with bigger influence around here understand what I am trying to say, and we start having a culture shift.
I think it's clear Steemit, Inc intended SBD to serve as a stablecoin to enable merchants to set up shop on Steem more easily. Most of the time it has worked reasonably well.
@sbdpotato is a good project, the only flaw of which is in my opinion the fact that the creators of potato posts should set up more placeholder comments to help distribute the rewards so as to keep the posts out of Trending. There is nothing else wrong with the project.
"There is nothing else wrong with the project."
The whole project is wrong. It won't achieve what is intends to, it's directing funds(rewards) to something that is totally useless and no necessary, and if it eventually succeeds, it will make the SBD market looks like a really elaborated pump n dump scheme.
Steemit doesn't have a exactly good image when seen by outsiders, so this can be damaging Steemit reputation more than helping.
Also, this make direct big STEEM stakes to "mine" curation rewards with very little effort, wich disincentivizes them to look for other ways to have investment returns.
Burning SBD is not useless and unnecessary at least if you think SBD shouldn't exist.
Non sequitur.
The posts in Trending? I agree. That's why they started to post more frequently so as to keep the rewards per post smaller.
An internal stablecoin that works better helps everyone. SBD needs stability for SPS funding to work better.
Let me phrase it another way:
Reducing supply is useless if there is no demand.
Sbd have a reason to exist, and I don't think it should cease to be exist, they the community use it is wrong.
Proper arguments still on the works. For now it's just a feeling based of past knowledge.
It's not only about trending page. It's how the blockchain ecosystem as a whole (and this includes trending, market prices and movements, and projects built using the blockchain)
If a usd stable coin on the blockchain is really needed, why not implement one that actually works as a usd stable coin? SBD isn't designed for it. It have stability properties, but not USD equivalence stability.
Let me repeat one thing: SBD was designed to be a stablecoin. It does not work well enough but that does not negate the fact that the original intent behind its introduction was precisely that. Its very name suggests that: Steem Backed Dollar. It's supposed to represent the US dollar on STEEM and be backed by STEEM to keep its value. The downside peg has, in fact, worked pretty well considering the abysmal depths STEEM has descended into.
There is demand for SBD. It's useful for anyone who wants to use a currency much more stable than STEEM.
A currency for what? There doesn't seem to be a lot you can buy with SBD.
Steem.DAO pays for doing projects in SBD. The platform pays for useful work in SBD. Why SBD and not STEEM? Because STEEM is too volatile a unit to pay for work, while SBD is much less volatile. If you ask for 100 SBD a day in your proposal and get it, you can expect those 100 SBD to be worth at least somewhat close to 100 USD for the duration of a small project whereas STEEM can crash or moon at any time.
As I said, there's not a lot you can use SBD for.