When witnesses artificially inflate the price of STEEM via their price feed, it causes the amount of SBD rewards that are available for post rewards to go up.
No, the price on the internal market is based on whatever market participants are willing to buy/sell at.
The blockchain has it's own internal price, which is different than the internal market price. The blockchain price is used to determine the amount of STEEM that SBD conversions produce, as well as how much SBD to pay out for author rewards. This price is set by the witness price feeds.
I think you are confused. There are two completely separate prices:
Price 1: The internal market price, set by the buying and selling of STEEM/SBD.
Price 2: The internal blockchain price, set by the witnesses price feeds.
There is also a difference between "converting" SBD to STEEM (done through the wallet, and takes 3.5 days), and "trading/exchanging" SBD for STEEM (done through the internal market, or through an external exchange).
The HF 18 conditions of reduced rewards are not a natural market condition.
Because of HF 18, the payouts are all artificially low right now because the 30 day rewards pool is being 'filled'.
When witnesses artificially inflate the price of STEEM via their price feed, it causes the amount of SBD rewards that are available for post rewards to go up.
No, the price on the internal market is based on whatever market participants are willing to buy/sell at.
The blockchain has it's own internal price, which is different than the internal market price. The blockchain price is used to determine the amount of STEEM that SBD conversions produce, as well as how much SBD to pay out for author rewards. This price is set by the witness price feeds.
I think you are confused. There are two completely separate prices:
Price 1: The internal market price, set by the buying and selling of STEEM/SBD.
Price 2: The internal blockchain price, set by the witnesses price feeds.
There is also a difference between "converting" SBD to STEEM (done through the wallet, and takes 3.5 days), and "trading/exchanging" SBD for STEEM (done through the internal market, or through an external exchange).
Yes, that is correct.