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Rethink the SBD to STEEM conversion strategy for a future HF.
Instead of getting the average from Internal Market my opinion is that it should be an average from witness informed STEEM prices, so it would create a small margin of profit to those who help decrease inflation and naturally stabilize once it gets back to 1 USD parity.
Right now I've seen no incentive for people to help decrease SBD inflation and without it's USD parity it gets a little hard to convince people that SBD is a USD based stablecoin.
The SBD to STEEM conversions already use the witness informed STEEM price feed. No data from the internal market is used in this calculation.
The SBD to STEEM conversions already use the witness informed STEEM price feed. No data from the internal market is used in this calculation.
Thanks a lot.
All my latest conversions are returning exactly 5 steem for 1 sbd, which doesn't make sense with the Steem value at ~0.12. It seems the system is considering the Steem value at exactly 0.20 when calculating. I went to see the reported value from the witnesses and most of them are truthful to the actual value while some even have 1.5 USD per steem. Is it possible that those few witnesses with wrong values are affecting the calculation or that the system has a minimum limit? Sorry to bother you all again. Is just some doubts I have and I want to help our network to succeed.
The witnesses are currently reporting the price feed at 0.20 STEEM per SBD. The blockchain is working as expected. The witnesses are likely modifying their price feed to account for the fact that 1 SBD is currently worth less than 1 USD.
The witnesses are likely modifying their price feed to account for the fact that 1 SBD is currently worth less than 1 USD.
But this ruins the reliability of SBD as Stablecoin in general as we are unable to fix its inflation while the chain keeps producing more SBD and it's value still is unable to rise above 70 cents.
The blockchain is working as intended. I cannot do anything to change how the witnesses behave. This is a good thing for the decentralization of Steem.
Note the chain is not producing more SBD at this time as it is turned off when the ratio of SBD to Steem market cap is too high.
(Exception in the SPS, but it's quite limited in how much that is printing and distributing)
A slight clarification for the above also: witnesses are setting market price feeds. Blockchain code has a mechanism to throttle conversions to prevent too much steem from being converted from SBD, again if the ratio is too high (imagine if it was respecting full 1$ worth and everyone was converting it, leading to further steem price decline). That mechanism is by respecting a higher price, as you are observing. It locks so that conversions maintain a 10% ratio.
imagine if it was respecting full 1$ worth and everyone was converting it, leading to further steem price decline
I see your point but I happen to disagree with this as it invalidates the idea of SBD being the stablecoin of the network.
It is my opinion that Steem should not have such mechanism and allow Steem value to fluctuate more freely in regards to its SBD value. After all, SBD suppose to be a stablecoin paired to USD.
Let the value of STEEM fall if it is necessary to keep SBD stable and in parity to USD. STEEM value comes from the value of the network as a whole and if you want it to rise, the solution would be to put more effort into bring more people and businesses here.