Well the main risk is that we see the opposite of what has been happening with SBD, and there is insufficient demand for it. We have seen that before in the earlier days of Steem. Under that scenario, then market conditions would push for SBD to be converted into STEEM, which would reduce the SBD supply.
It sounds very drastic, but the absolute worst case scenario is that the SBD peg would break in the negative direction, and SBD would be worth less than $1. At that point, it would be up to the market to determine what SBD would be worth.
very good presentation, we hope that content creators related to the price at the crypto market, hopefully the price can go back to strength. this greatly influences our enthusiasm in creating valuable and worthy content
Okay. I think I'm getting this. This is basically a change to help ensure the SBD ratio is maintained within favorable parameters and that it continues to bolster the peg, as it is worse for SBD to break the peg in a negative direction than it is to do so in a positive.
Well, the peg is already 'broken' in the positive direction. There are not really sufficient mechanisms to push the price back down to the peg when it goes up. The changes being discussed here are all intended to help push the peg back down.
Okay. Very good. I feel better now. :) I appreciate the time taken by you and others to explain things. May it all go the direction we all hope it will go—for the betterment of the STEEM platform.
Apologies sir, i have wrong button press downvote 🙏🙏🤦🏿♂️
@glenalbrethsen so sbd won't be higher than 1$ or less than 1$. is this they trying to fix..
Hey, @lelong.
The short answer to that question is probably yes, in theory.
Longer answer is, it's not like they can fix it to any one price point, though. They're doing what they can, but the market is still going to decide what SBD does, even with this code change. Sounds like they're mostly concerned at this point with SBD dropping below a $1, too.