WHY ARE STEEM REWARDS PAYING OUT LIQUID STEEM?
Earlier this week we noticed STEEM author rewards are now paying out Liquid STEEM in addition to STEEM Power and SBDs. In this video we do our best to explain why.
We've learn that SBDs are worth at least $1 because they're backed by a certain ratio of STEEM and since the price of STEEM has decreased now it requires more STEEM to back up existing SBDs. This is why the STEEM blockchain has now stopped producing SBDs and instead produces more STEEM in order to back up those SBDs. Furthermore, we've learned this is written into STEEM's code and occurs automatically.
One could believe that it's a good thing to have this written into the STEEM code while others may argue this creates inflation and reduces the value of STEEM by increasing the circulating supply.
Why do you think about Liquid STEEM payouts in addition to STEEM Power and SBDs? How do you think this feature written in the code could affect the value of STEEM in the long term? Please share your thoughts below in the comment section.
Related links:
Liquid Steem Rewards are Here - Math Time!
https://steemit.com/steemit/@geekorner/liquid-steem-rewards-are-here-math-time
STEEM Rewards News Flash
https://steemit.com/steem/@eonwarped/steem-rewards-news-flash
I didn't know the reason for the liquid steem but now after watch your video i have a whole idea. Regards
I think this whole thing is a credit to the people who wrote the code to have the foresight to put things in place "Just in case".
I'm not sure this was the best solution as it would seem that it would have the opposite affect of what was intended. (push price down)
but what the hell do I know? haha
~ hopefully things run up soon
I would say inflation is the only outcome, SBD price matters 0, If it goes under 1 dollar, chose 100% steem reward???? and STEEM price will have to follow the market.. there is no other way :)
Thanks for the info!
I too got liquid STEEM for my post in addition to SBD and SP and i was shocked and thought that this is the new method of payout .i though steemit was updated .by watching your video i understood about why it is happened. Thanks for beautiful information @champagnecrypto. I have a question about this -for how much time do we get liquid in addition to SBD and SP?approximately ?
Thanks for your reply. Things should get back to normal after the price of STEEM increases enough to cover the existing SBDs.
I believe at the time they thought adding liquid steem would help to compensate for the drop in price but didn't consider the effects of it. That could be attributed to the potential the market had of probably never coming back this low so this maybe was a just incase hoping it wouldn't have come to that.my thoughts
Thanks for sharing @champagnecrypto, I was wondering why I receiving STEEM with SBD instead just SBD (liquid crypto). Now I know why.
I've noticed that my payouts are wavering between the 2 payout types as the price balances the line. I took the opportunity to buy a little more even though I can't afford it lol.
I am very new to steemit.Today I just made my first post.Help from big shot like you will made my life.You are a very kind hearted person it shows.Because now a days people doesn't help others but you are doingit regularly.Thank's from deep end of my heart.@upvoted and resteemed
Thanks for share experience front us
thanx for the information. yeah I do agree with you. really nice video. good educative video.