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RE: Still in Defense of a High SBD: Why Witnesses Should not Implement Steem to SBD Conversions Now-
Is the simple fix not to just increase the reward pool via HF?
That would result in a bigger distribution of STEEM, causing people to earn more SBD.
This would allow SBD to go back to $1, while allowing users to be paid much more, e.g. their $10 post could be worth $100.
A stable SBD allows for authors to be certain about their rewards. With the current high flux, a $100 post could pay out 50 SBD, but that could be $500 or $50 by the end of the 7 days...
Yeah, increasing SBD distribution is the way to bring it down fairly and organically.
@jasonyoakam, I agree thoughts on SBD.
The current situation was not the vision cited in the whitepaper for SBD, but is it really fair to even look at it as a problem? After all, who's the better authority on value - the whitepaper or the market? The growth is coming from the authors and from the investors and their security is more important than the small utility pegging SBD would afford the almost non-existant SBD-based commerce.
Let's not forget that flipping a switch overnight will almost certainly crash the market and would wipe a huge portion of the blockchain's total market cap.
Drastic measures in the name of stability in a market that's growing and doing fine is as misguided as things can get.
@someguy123 interesting points. I think this issue is purely relative. Many people have trouble in gauging growth within an enterprise. A very simple way would be to look at the SBD and steem prices over a given period of time. I think the newer people here get really excited when the prices rise drastically from where they were when they started. Whether or not that has a huge correlation to spikes in membership, it could be argued both ways, also there isn't a lot of data over a longer period of time to point these things out. If you are more established on the platform, of course you want a more stable price, among a lot of nice perks you mentioned it also brings a level gravitas, or respectability, rather than having value spikes up and down all over the place. Many people associate stock splits typically with a positive tone, and if we had something similar happen with the steem dollar I think it would generate positive press to the outside world for about an 8 hour news cycle. Many people do not understand that a split does not create literal value, but reorganizes the same thing of into more or less pieces of ownership. As of right now, I think word of mouth, through personal or social media is what's actually getting the word out. In my opinion as lowly minnow and being new to the platform, as of today I like the fluctuating price. It's an added value to buyers of the currency, having it being able to volatile as it is, as you feel you may have to get in at a certain point, it could create a sense of urgency within the steemit community and the outside investor (which we will be seeing much more of) becomes a little more nervous to short change the value of something so revolutionary and new as Steemit in my opinion. Great post once again @aggroed, interesting thoughts @someguy123!
I say, let's peg SBD to $10 then.
What would the point of that be? I honestly don't understand it. Also, wouldn't that wipe out 90% of the SBD rewards overnight?
I've argued for that too. It would seem I argue from the majority position there as well.