Would increasing the default payout to 75% SBD instead of 50% eventually put downside on the SBD price? Or am I thinking bass ackwards?
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Would increasing the default payout to 75% SBD instead of 50% eventually put downside on the SBD price? Or am I thinking bass ackwards?
It could help by increasing the supply, but in my opinion, I think we still need to wait a little longer to see what the effect will be from the recent price spike and SBD creation. If prices are still high in a month or so, then we should probably start discussing the options. But even then, we would need to look at the market conditions in general to get an idea of what the causes are. If it's simply a matter of strong market trust/confidence instead of supply/liquidity, there's not much that can be done about it.
That SBD doesn't hold the peg almost at all during a price spike is a problem that could use addressing. There will always be price spikes. We shouldn't expect them to break a pegged asset.
That said, this issue started before the price spike, so it is more difficult to characterize the underlying causes.
I don't agree there. We can create a trillion SBD. It can always be a matter of supply if that's what it takes (though not exclusively that)
It could, but I think the idea of offering a higher SBD option (75% or 100%) to authors would be better. It would make the supply responsive to demand because people would tend to choose more SBD when SBD is above $1 and less SBD when it is below $1.