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RE: Witness Discussion – SBD price and reverse peg

I kninda don't like the idea because these changes could destabilise the market which is already too volatile. SBD was intended to be pegged to 1$ but right now it has pumped a lot. On the other side, if you look at it, it tends to get lower.

I think that with time, people will not feel the need of SBD at all and we can completely give up on it and keep only Steem.

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Thank you for your stance! SBD not being a good peg at the moment is why we discuss about enforcing it more. I can see your concerns and they are mine as well.

Yep, this is the only things that scares me, I can live on with fewer rewards, but a more volatile market would be pretty bad. If people analyze the market and can predict accurate that the price of Steem won't be affected, then I am okay with the change, especially keeping in mind that this is how SBD is supposed to work.

If you read the white paper - the peg was only on the downside. The upside was not assumed to be a problem in need of fixing.

I'm glad someone is pointing this out. The whitepaper is essentially saying that in this regime the market is willing to pay a lot more for this debt token, and there's not much you can do when there are too many crazy people.

And I don't think too many people realize that that's what this is (1 SBD is a gift card worth 1 USD worth of STEEM when redeeming through the STEEM blockchain). And we have a natural mechanism where the more successful STEEM is (by marketcap) the more SBD gets printed. Just be patient y'all....

The white paper also says this:

We fully expect there to be a narrow trading range between $0.99 and $1.01 for SMD under most market conditions

The white paper got this wrong. They did not think that an upper peg would be needed (other than perhaps very occasionally). They were also wrong that there isn't much you can do when there are too many crazy people, as shown by other pegged coins on the market that deal with this situation a lot better because they have mechanisms to increase supply. They still have pumps, but the pumps are short-lived and do not disrupt the token value for months as they do here.