(Power-down canceled)
Once again it looks like I'm the dumb one! Don't burn your SBD! You don't get $1 worth of Steem per SBD. Still, as long as Steem doesn't implode, SBD should go back to $1 eventually.
The market cap of Steem right now is $73,892,197. OUCH. There are 12,812,034 SBD in circulation. The haircut rule goes into effect when that 12,812,034 SBD is more than 10% of the market cap. It's no surprise that the current percentage is 17.3%. 10/17.3 = 58%... so you might be able to buy SBD for 60 cents on the dollar, but if you burn it you'll probably only get back 58 cents.
If the haircut rule didn't exist then it would be possible in these situations that Steem would inflate out of control. Many of those SBDs were issued after the value of Steem spiked to $8.
A year ago we had around 3 million SBD and then we printed 12 million more. Today we have around 13 million total. Occasionally I wonder if it's even worth the trouble having this asset around. Seems like a lot of complication for a coin that can't even come close to maintaining the peg.
On top of all that, our rules for SBD revolve around USD. What happens if the dollar loses more value than expected over the next 10 years? Will that cause any weird behavior with the system we've created here? Is it wise to assume that the value of the dollar will maintain its stability?
Perhaps now is the time we should be thinking about other ways that this community could burn SBD. Imagine a first-person shooter video game where bullets cost 0.001 SBD sent to the @null account. A gambling application could also burn it's profits to @null. If the promoted tab worked like it should more users would be using that as well, further removing debt tokens from our platform. Feel free to add to this list in the comments below! Much appreciated.
Return from So Much Dumb Money! Continued! to edicted's Web3 Blog
