No-Brainer SBD Potato Top Up Proposal
By now you are likely familiar with the @sbdpotato project, if not please check out the intro post. In summary, the @sbdpotato project name was inspired by this image where a potato brings balance to a stack of coins.
The essence of the project is to create a sustainable cycle of purchasing SBD on the internal market using post rewards and then placing the SBD into the conversion process, converting it back to STEEM over a 3.5 day period and then repeating the process to continually remove SBD from the market and lower the debt ratio to below 10% so the rest of the community can start helping to convert without fear of loss due to the haircut rule being in effect.
Currently, there has been positive support for the project and there are regular supporters of the daily post, yielding over $90 per day towards the conversion cycle. There is circa 1,500 SBD in conversion and 7,200 SBD converted since inception.
While these figures are encouraging; they are not enough to make a dent in the debt ratio; at the time of writing BTC has dropped below 7000 USD and SBD is sitting at 0.59 USD while the STEEM price has dropped to 0.12 USD according to https://coinmarketcap.com. The current @sbdpotato funding model is going to take some time to accumulate enough funds to make a meaningful impact which is why I am proposing this proposal gets funded.
The Proposal
Daily rate: 250 SBD per day
Period: 100 days
Total: 25 000 SBD
Recipient: @sbdpotato
Purpose of Funds: To be used to support the SBD peg via a cyclical market-buy-conversion process as detailed above and in the @sbdpotato posts.
Funds Return Mandate: Once the funds are no longer required to stabilise the SBD peg to 1:1 to the USD, the funds will be returned in full to @steem.dao which makes it a "No-brainer" vote as it will, in the end, be like a return proposal.
The DAO will also benefit from the spin-off effects of a stronger SBD which means less SBD is required to fund proposals with USD costs that need to be settled.
Further Compartmentalised Funding
Should the this proposal funding be insufficient to correct the peg in a reasonable timeframe, it is recommended that additional trusted parties, witnesses, whales, project owners etc also submit proposals for a similar value and run the open source code on a personal Heroku instance.
For example, 250K SBD in custody of a single person is significant counterparty risk; however, 25K SBD across 10 different custodians achieves the same economic effect with decentralised risk.
(Credit to @smooth for the discussion that led to the formulation of the above.)
Conclusion
It is my sincere hope this proposal will be funded and thereafter, others might make similar proposals to catalyse the repair of the SBD peg through the power of unifed community.
Sincerely,
@thecryptodrive [Witness]
Proposal Voting platforms:
https://steemitwallet.com/proposals
https://steempeak.com/proposals
https://steemproposals.com/proposal/66
Voted :)
But I would prefer you to keep the funds and:
Then maybe in the future the process could be decentralized by building it into the blockchain like @steem.dao. The more systems the stablecoin has to keep the peg the better.
Thanks so much, some stakeholders would like some certainty as to what happens to the funds when they are no longer needed which is why I clarified that point. It would also be better if it was handled at chain level in future using the dao as a conduit.
Layer 1 smart contract platform wars are likely the narrative for 2020, after the SMT HF I would strongly vote for smart contract ability on Steem so that much of this could be automated at chain level and remove custodial and counterparty risk altogether, once we have a bulletproof SBD peg we can diversify into things like SBEUR and SBJPY etc, i believe there are almost 3 times as many Euro based crypto users than US, so makes sense.
Dear @thecryptodrive
It is a great proposal my good friend.
But I have a question, it will be that individually each of us can start buying SBD,
I think that can also help true .. ??
Because of the haircut rule, the conversion will likely make you a loss, also there is loss potential on the market due to slippage, so for now if you did it with your own funds while the debt ration is > 10% you likely will make a loss each time.
It would be nice to have SBD close to or at $1 again as I'd much rather pay for Steem Monster cards and packs with SBD then I would Steem as Steem has a much higher likelihood of increasing in value over a token who is supposed to be worth $1.
Come on man... Here is my proposal for you:
Get the witness together, convince them to donate 65k steem total from all of them (and maybe other whales too), trade it for btc, buy the sbd ask book on Bittrex.
There. You have sbd price at 1 USD.
Then do whatever with the collected and (burn, donate, I don't care)
Isn't this way easier than pledging for funds that could go to another more attractive project?
Also, it would stop the potatoe nonsense on the trending ( also a front page for steemit)
A little bit difficult to get everyone to part with their funds especially in this down economy, getting SPS funding to buy up SBD and keep converting and buying is the best solution, and keeps the posts off trending. The funds will be returned to the SPS when the peg is fixed so other projects wont lose out. Atm the fund has 200K sbd and growing and not many projects have enough votes to get funded so funds sitting there
That's the problem with individuals/proxies who decided to squat on the return proposal or trying to flex some muscles about their childish and ignorant views.
They think they are making a statement, but the only thing they are doing is causing those who are interested to build and vest their time to become disinterested.
If stakeholders feel things like a public node are not worth funding, then they deserve a failed ecosystem. But hey, not like some of them with millions of SP actually know what the hell they are anyways.
Some of them still think they are invested in
Steemitafter 3+ years.Yip the return proposal has too much support, I agree with you there. People being penny wise and pound foolish. Ridiculous how @anyx can't even get his $15 per day proposal funded for key infra that most apps actually use. When the anyx node is down half of Steem is down.
Don't worry when I get the sbdpotato project stabilised and at a point where it needs to be, I will go on a crusade against that return proposal. One thing at a time, I don't have the personal bandwidth for everything.
Then I guess they aren't as worried with the Steem economic health as they claim to be?
Steem/SBD ratio is working as intended, and the whole problem with this potato initiative is that it doesn't have any real effect.
Here is a scenario for you:
Let's suppose you get the funds to buy the sbd form the market, and the price goes up to 1 USD.
Now sbd start to be printed again, and supply increase. A few months later, sbd price start to go down again because there is no demand for it, because no one have an actual use for it.
Then what? Ask for more funds to manipulate the market again, and again and again?
The result of this way of action is that sbd will always be a shitty coin that everybody will now know that prices are being periodically manipulated.
It doesnt work, and worst of all, don't increase the value of the ecosystem.
There is only one solution for this "problem": increase demand in a real and meaningful way.
Instead of looking for Band-Aids, those involved on the development of the blockchain and its tokens should look to improve it in a way that attracts more people to it.
I have been using steem for a long time now, and it is sad to see a platform with so much potential go down the drain because of petty disputes over rewards value.
Guess what? If no one cares about steem, its value will be zero...
I had only skimmed on this one, wasn't going to support it as i think it might not work, but since you mentioned a refund policy and the numbers are large enough to at least try (and you mentioned splitting in pieces to decentralize), in the near future the strength would be to keep it down, i doubt that you can but it might work, or else only a change in the code / inflation probably.
Speaking without much technical or economical knowledge.
if you look at the latest post https://steemit.com/sbdpotato/@sbdpotato/sbd-potato-2020-01-21-11579645250790 we have already converted 20K SBD and this figure grows exponentially every day.
That is great news to sbd potato. Thanks for this updates
Thanks for your support!
Potato? Even the name itself is a joke.
The names Google and Yahoo are a joke as well, that’s the point it is supposed to be memorable.
I think that the intention of this initiative is commendable however it is a drop in an ocean and it will not even make a scratch. At the current prices we need to burn 2.5 million SBD so it would take this proposal 10 thousand days to achive it's goal...that is 27.4 years. Assuming we multiply this effort by 10 it would still take almost 3 years to do it.
With the current inflation rate the blockchain is producing about 30 million steem per year. That has a value of 3.9 million USD or 6 million SBD (at a price of 0.13 for steem and 0.65 for sbd). So burning 2.5 million SBD means that we would need to re-route 42% of the inflation to this. That equals to 100% of the author rewards for 1.2 years.
That is not even considering that with the last HF there is nothing stopping the printing of SBD. The whole SBD pegging mechanism is FUBAR.
The only realistic way that SBD will be worth ~1 USD is if Steem is at least 0.20 USD again. Doing conversions is not good because the market sees that the inflation rate skyrockets and the price will reflect that.
Going forward we need to make sure that the code does not issue SBD via author rewards since the SPS already takes up 10% of the inflation and that triggers the haircut rule faster than normal...In addition we should make sure that there is a mechanism in place that stops printing SBD via the SPS. Maybe have a hardcoded rule that buys SBD from the internal market instead of printing more SBD...or we just live with the fact that SBD will no longer be worth about 1 USD.
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I think longterm it brings nothing, because the market doesnt see SBD at 1$ otherwise it would be 1$.
And what is if Steem Pumps to XX$, then we print a lot of SBD again.
So what is the benefit of it?
I think SBD cant be abuse save so it should fixed or removed.
I do agree that SBD needs to either be fixed or removed, leaving as is in a broken state is stupid. if steem prints alot of SBD then sbdpotato just needs to keep doing its thing converting the SBD and getting rid of it.
The market doesn't believe SBD is $1 because there is no monetary policy committee behind SBD trying to help peg that, there is no smart contract like the dai or any dollar backed bank account like Tether, SBD is largely just left and not managed in any way and we expect it to be pegged with no effort. sbdpotato aims to change this and bring about some human intervention and governance to fix the peg.
smart contract i think is the right solution. If the Blockchain itself fix the Problem and exchange, that would be better.
Is it possible we replace SBD code with a dai copy for steem? because i think dai works way better.
That would be a great proposal i would support :)