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RE: What if we used the SBDs created every day in the DAO to buy and burn STEEM?
These are good ideas
Hope All witnesses and users in steem can come up with good suggestions to put this into effect to be able to burn steem.
It will be healthy for our ecosystem if we can make it happen
The time has come for something to be done
Who will manage this?
There must be trusted witnesses, who are selected as a team for this process of dealing with SBD to buy steem on the single market and then burn steem
It should also be done with some knowledge of trading as many could increase the value in their selling prices expecting to be bought with this program.
The ideal would be to look for gradual price targets, to consolidate the floors and burn as many STEEMs as possible with the available SBD, not generate a spike that vanishes the same day (as it usually happens in Binance when the STEEM price rises.)
So the manager must produce confidence and have a good strategy.
Well the idea would be to use all the SBDs that flow in daily, so there wouldn't be any market timing aspects to it, just use the SBDs as they flow in regardless of STEEM price etc.
I was referring precisely to the domestic market. Suppose a person has in the market an order to sell 10kSTEEM.
Let's suppose that currently the heaviest selling order in the internal market is 0.08SBD and the amount of SBDs in the DAO is enough to buy 10K STEEMs at that price, but the news spreads that this will be done whenever SBDs are available, then the shrewd seller withdraws his order and places it at double the price, as we are going to buy as soon as the SBDs arrive we would be buying and burning 5kSTEEM instead of 10K.
If on the other hand we set a gradual price target we can set buy orders instead of taking the sell orders, and gradually increase the price of the buy order as the price consolidates, that would burn a larger amount of STEEMs with the available SBD than if we just go and take the existing sell orders, that's what I meant to express.
But it's just an idea, I could be wrong! Or there could be better strategies of course.
In my opinion, the way to do it would be just a continues flow of sbds to internal market buying all steem available on the ask. As this service is continuous it would be difficult to game, just one continues buying of steem available on the internal market. The internal market is mainly run by bots that are continuously replenishing their supply of steem as buy orders take them out, and this replenishment of steem eventually comes off external exchanges. If things get mispriced on the internal market vs the external markets then users will likely arbitrage the difference to keep the prices close.
Agreed. The idea of having the SBDs used to buy STEEM on the Internal Market adds a level of transparency since the funds never have to be shipped off the platform to another exchange etc. It all stays here, buys the STEEM here, and then ships to the null address, all verifiable here on steemit and steem.
And as far as I know it can be done without a hard fork
Correct, we just need a proposal... and that proposal to be approved by the powers that be.