That is a very fair assessment. The reverse peg is just one solution in my opinion. It may be the "end state" that we want but there might be other ways to get there. I think any solution that benefits the few at the expense of the many will rightly cop criticism.
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right. what I want to try to figure out is what 10% of market cap looks like. that's the number thrown around, we dont' want to exceed 10% debt. problem is, you can't assume current market cap.. so maybe look at a marketcap where steem is worth like $3 see what 10% of that is... and get an idea of how far we can let sbd inflate before we are putting more debt on than we want.
That right there is the reason a reverse conversion would help. Because the reverse conversion doesn't create mass inflation. One token inflates while the other deflates and vice verse, but it assumes that the user base would use the feature and impose the peg itself, which it well may.
What I haven't seen in these posts about the sbd peg is numbers, and as much as I'm not into math, I feel like the community really needs to see a set of hypothetical numbers, so we can figure out what is within the tolerance of our market to sustain as far as sbd production goes.
The likely case, is that steem will continue to rise as we get more and more exposure in the media, and you can't search for anything in crypto without pulling up a steem blog about it. The price will continue to surge, buut, there's always the chance that we're at the beginning of a big dump for the entire market till spring, the possible dump is where concern about blockchain debt comes into play. if all a sudden sbd becomes worth less than 1 dollar, and people wanna convert it to steem, and the steem value isn't as strong as it is now, that could strain the value further.
for now I think the high value of sbd is GREAT for the economy, more people powering up, surely a lot of the sbd pump gets funneled into steem, meanwhile it's great advertising. There is some concern too, if we drive the price down too quickly, it could have a negative effect on the price of steem as well.
A lot of thinking, watching and waiting to do... big decisions don't happen fast, so... for the moment, any bloggers who are dependent on the high value of sbd don't have much to worry about except market fluctuations. Nothing is predictable... shit, value has only been pumped like this for a month or so and everyone has gone nuts like it needs to last forever... I'll be sad when sbd levels out, but it will eventually, one way or the other. But we need better pegging mechanisms, for sure. just printing more sbd is probably not the best way to keep the value lower, I mean as a long term solution. Some type of steem to sbd conversion will likely be necessary for the long term maintenance of the peg... when and how? idk
My view on the 10% is to take the STEEM market cap in USD, 10% of that and that is the maximum Circulating Supply of SBD (valued at $1). As soon as that Circulating Supply of SBD goes above that level then it is no longer redeemable for $1 worth of STEEM (it starts to decline), so at that point we have real risk of a serious boom-bust that can really hurt the platform long term.
We are a long way from that right now, but it is still worth keeping an eye on.
I could be wrong about that and if anyone out there wants to correct me, I welcome it.