SBD is meant to be pegged to USD in a 1 to 1 ratio so as to give holders of SBD some stability and some tether to fiat currencies. In order to try and maintain this peg, the Steem blockchain through its witnesses employs an action common with central banks: varying the interest rate earned by SBD. Open market operation is another action common with central banks that could be useful in maintaining the peg when the interest is zero and negative interest rates are not an option.

The blockchain could react to SBD price increases by arbitrarily creating SBD and autonomously trading it for STEEM from users in the internal market. The STEEM could then be destroyed in order to reduce the supply of STEEM and increase its price. The price increase of SBD would therefore be transfered to STEEM and the 1 to 1 SBD peg to the USD can better maintained.