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RE: Saving SBD - Proposal to Restore the $1 USD / $1 SBD Peg

in #sbd7 years ago

That's a valid philosophy but it isn't what SBD is.

SBD is a managed pegged asset. It is essentially managed by people who are not literally central bankers but metaphorically are in that they perform similar functions, as described in the Steem white paper (for example, setting interest rate policy). It literally isn't possible to avoid doing so because there is an interest rate parameter and a decision must be made what value it should take (potentially including 0%).

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In fact, the interest rate on SBD can even be negative to uphold the peg if needed. This may help to get the peg back to 1:1 quite rapidly.

It could, in principle, but that function is not implemented in the Steem blockchain.