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RE: How to "fix" the SBD peg

in #steemlast year

SBD was never a stablecoin, there is no force down- or upside. never was.

it's a loosely pegged token. I'm still in favor of removing it completely

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Agree, SBD is a pointless and worthless complexity added to the system.

I'm still in favor of removing it completely

That is one conclusion that I reached after the last HF

https://steemit.com/steem/@onthewayout/did-we-screw-ourselves-with-hf-21

There is mechanics in place to influence on the market forces.

But since we have a debt ratio over 10%, the system is protecting STEEM price, avoiding the increase of it's inflation.

I detailed how exactly it works a bit more here: https://esteem.app/sbdpotato/@phgnomo/how-sbd-peg-actually-works-or-how-the-sbdpotato-conversions-won-t-affect-sbd-price