Wouldn't the actual fix for this be to directly convert the STEEM/SBD without involving the USD value at all?
How would the blockchain know how much STEEM to produce per SBD converted?
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Wouldn't the actual fix for this be to directly convert the STEEM/SBD without involving the USD value at all?
How would the blockchain know how much STEEM to produce per SBD converted?
So the question is, in essence, "how do we find out the conversion rate for STEEM/SBD?".
I'm going to assume that there's a problem with the solution I am going to suggest here because it's so obvious and that there must be a reason why you are asking that relates to something I am not considering. ;)
The conversion rate of Steem to SBD on the global market exists independently of the blockchain via exchanges, so isn't it acceptable to just get an average of the exchange rate for SBD to USD from exchanges in a similar way to how the price feed scripts currently get the STEEM/USD converstion rates? Or maybe just use the internal market's rate averaged over 3 days. I previously thought that's how it worked anyway.
Let's assume it is possible to get a SBD/USD price feed. How would the blockchain use it to determine how much STEEM to produce via conversions?
If you have a live conversion rate for STEEM/USD and also for SBD/USD (without assuming that 1 SBD = 1 USD) (or alternatively a BTC conversion rate rather than a USD conversion rate) - then you can calculate the appropriate amount of STEEM to create accurately and simply by:
Amount of Steem to Create = (Amount of SBD To Convert * SBD/USD Ratio) * STEEM/USD Ratio
So in other words, just work out how many USDs the SBDs are really worth (not assuming they are 1:1) and then work out the amount of STEEM needed to match the USD value. It would be possible to do this without involving USD at all since major exchanges also convert STEEM/SBD by BTC too.
As long as there's no assumption that 1 USD = 1 SBD then there's no problem. Or did i misinterpret the OP and there actually isn't an assumption made in the calculation that 1USD = 1SBD?
If this assumption goes away though, then what is the point in having SBD? If we are going down that route, then why not just get rid of SBD entirely, pay users 100% in STEEM (50% SP, 50% liquid) and skip the whole conversion process?
Well, yes - if SBD isn't actually fixed to USD then it has little function.. I think @ned was quoted as saying words to the effect that SBD isn't really so great for this reason. Personally, I would get rid of SBD - but as long as it exists, there's no need to have this conversion error in the system.
Well the current situation with conversions is not really an error - at least in my opinion. The blockchain rules say that if users convert 1 SBD, they will get "approximately one USD worth of STEEM". That is actually working, even today with the higher SBD prices. The problem is that users can get more than that, and by doing the conversion - they are missing out.
I understand your perspective, but I use the word error in such situations in the sense that even if the software matches the spec, there is an error from the perspective of the user and thus also an error in the thinking used to define the spec. User experience is the driver for functionality in a successful business system, as opposed to 'adherence to documentation'.