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RE: SBD Potato Day 11: Potatoes Can be Sweet!
To follow up a bit on my reply to your comment on one of the older posts:
- Clearly this needs to get a lot bigger to make any real difference, with or without the DAO. There are a few million SBD that needs to get burned to fix the ratio (unless the STEEM price increases). With persistence perhaps that is possible but it won't happen overnight
- The DAO is increasing the SBD supply, but not the debt ratio. 9x more STEEM is created per day as compared to SBD. This initiative should at least speed up the reduction in the ratio, even if the effect is small at first (see #1)
Can this "burn feature" overcome DAO's daily SBD provisions? 1,596 SBDs per day were released to be used to fund projects, which means they're sold. Seeing @sbdpotato's daily earning which will be used to purchase SBD, it isn't enough. There's a big discrepancy?
Remember @sbdpotato recycles the Steem/SBD it receives in a constant conversion and market buy cycle, so the amounts will grow over time. Right now only 100 SBD per day is being released by the DAO, so that is not alot to overcome right now.
Thanks for answering @smooth.