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RE: Boost Steem Value by Backing Steem Dollar
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:
- lets say you do this and it is successfully you get a 1: 1 parity, etc etc things happen and now the USA dollar is 'Bali' money i.e it's the Peso - does the Peg stay for the users that 'choose' it (witness system) or does it naturally float with the market?
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.