Hello Dan,
Great explanation now I understand why raising the interest rate would not help.
I have one question, is there a possibility, that people who are earning on Steemit just need the money, so they sell at 0.9 or 0.8 $? If I am hungry, I don't care if the price is at 0.9 or 0.8$ I will sell to buy food ;)
But I agree, if SBD was always around 1 USD, many people might keep their SBD in the wallet.
Of course you can sell your SBD. It wouldn't be worth anything if you couldn't use it to buy food. The comment about not wanting people to sell it revolves around people selling it because they don't have confidence it maintaining it value relative to USD. By maintaining the peg better we can remove that reason to sell and turn it into a reason to buy (beause it does maintain value and also pays interest).