RE: Witness Update - SBDs, Meetups, and More!
Hey I'm really sorry I didn't respond to this sooner, it got lost in a sea of other things - but better late than never!
But it appears that you are going the other way and slowing down the rate of excess SBDs coming into the system (from 250% to 50% means less printed, right?)
Under normal circumstances the price feed bias should be 0. So I had it set to 300% which is a LOT when SBD prices were off the charts, and now as they are getting closer to the intended peg i've lowered it to 50% which means i still support printing extra, but not so much extra.
Also will you advocate going back to printing more SBDs if the price of SBDs goes up again?
Yes since I believe it's important to try to keep it pegged at $1.
And when you talk about the conversion of STEEM to SBD... I am aware of the mechanics throught the exchange (which is not affecting the overall supply of either), so does this refer to some mechanism where you would increase SBD and retire STEEM from the market?
Yes I'm not talking about the internal market which is just trading STEEM and SBDs among users. There is currently a system in place where you can trade SBDs for $1 worth of STEEM, in which case the SBDs traded are "burned" and removed from the system entirely.
In order to fully peg SBD to $1 USD I support a proposal to also allow "burning" $1 worth of STEEM in return for 1 SBD, with some limits imposed to manage the debt ratio.
Hope that answers your questions!
First of all thank you very much for taking the time to answer this... And no worries that you almost missed it as I know you are busy. I think I understand, but if you don't mind confirming I got it right that would be great.
You have a mechanism in place that would allow you to buy steem and issue sbd on a 1 sbd to $1 of liquid steem basis. Therefore (if true) you theoretically can increase the supply of sbd to whatever is necessary to keep the price manageable and the consequence will be a reduction in the amount of steem outstanding.
I think I have it right and it makes sense as to how that could manage the price. I appreciate the lesson and the time. Also thank you for your support of #newbieresteemday post by @bashadow... He is a great guy and that was a good thing to see! Take care and have a great week!