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RE: Boost Steem Value by Backing Steem Dollar
I think we as a community can move Steem Dollar to a Steem Silver backing when the time comes. I think it would be worthwhile starting a discussion on when the Steem Dollar would switch its peg so that investors and speculators can factor in this added benefit.
It is clear that hyperinflation of the U.S. dollar is something that we should consider and any kind of "protection" that we can offer would probably help boost the value of Steem Dollars relative to bank dollars.
Why not have more options in parallel right now? When an author post a new story ask him if he wants to get paid in Steem Dollars or Steem Euro or Steem Gold ... The blockchain will then define the right supply for each Steem Asset!
That would get too complicated IMO and the learning curve would steepen further. If you can't hold a peg to USD right now, then other assets most likely won't be able to hold a peg either. I would say maybe introduce one, and only one, new asset in parallel: gold. That would ease the inevitable migration from USD to a more dependable asset... and maybe attract some goldbugs to the platform.
Now you're talking.
The idea of 'supporting the value of steem dollars' against market forces is a bit like asking people to pay more taxes than they ought, just to support the good ol usa, be patriotic. If the 'value' of the steem dollar is less than the dollar, then it is so. Only by improving the value of what the steem dollar represents can the steem dollar increase its value relative to the dollar. In fact, there is no rationale for having any 'peg' or backing to the steem dollar other than what the steem dollar is good for by itself, such as spending it with people and businesses who want to receive it, and using it as a savings account, as it seems there is actually a real return, provided you wait to cash out at the lower 'dollar' valuation, or some other valuation depending on the alternate currency or commodity. Leave it up to the individual to decide what they wish to exchange their steem dollars for, so they can pick the one they like, whichever the best value is at the time, such as bitcoin, maybe.
If there were to be a 'peg', which is just an arbitrary thing anyway, as people can if they like sell the steem dollars for $0.01 each or less, then the 'peg' should be an average of the global currencies and metals, like gold & silver & copper & palladium & etc., and the 'dollar' and the 'yen' and the 'yuan' and the 'euro' and the 'pound' and so on. Average all those valuations, however the money magicians do it, and say your 'steem dollar' is worth that, which technically it is. But people can and always will choose to sell lower and buy higher, and vice-versa.
What we are talking about with SBD is a little different though. The idea behind SBS is for it to be worth approximately $1 USD worth of Steem. The proposal is to basically tweak the numbers/formula that is used to calculate how much Steem one SBD is worth, to make it closer to $1 USD.
Is Steem Silver just an example or are you seriously considering this option?
Why not Steem Gold, then? :)
Anyways, it is a good and prudent idea to move from dollar to something with more lasting value.
I agree with this. I think it does not matter as much what is used as a peg, just that a peg works. As you outlined in your article it can be improved right now. Thank you for working on this.
i think ultimately there should be different indexes, that Sbd may be pegged to and witnesses or even better SP holders should be able to vote on what the peg will be. I.e. We could implement a rule that 70% of votes need to vote for a new index, for it to take effect, with a transition phase to make it all smooth.
I'm sure in the future a basket of crypto, gold and stock indexes may make sense, but who knows.
The key is that we make the peg work, once that is accomplished, switching the peg to a different indicator should be easy.
ok i understand 'economics' very well however i don't understand the internal mechanism of the witness system for Steem however my plain simple Question:
in that scenario you should get multiple USD to one SD (in theory) (think Yuan now )
hey a simple Question : what's the current SD ? Yuan cross rate ?
if the Yuan and USD swap in the paper market (swap value) what happens to the peg?
It can be pegged to anything, for example a basket or so. It would be decided by the community and executed by the witnesses. The goal is a currency with relatively stable value.
This reply makes me wish for a "reblog" feature for comments.