Tim, thank you for your reply,
The bear market has significant downward pressure on steem and also sbd.
Because of this, the market value has dropped also significantly.
This is a new situation because, with 15+ million sbd debt and the market cap in a downward spiral, they will meet each other at 10%. Because we stopped printing sbd's at 5% there is more steem created. Which re-enforce the downward pressure on steem. What we see is that even when steem price is rising, the market cap is still coming down. Price Feed Bias is created as control mechanism to keep stability.
Your proposal to extend the debt ratio from 2-5% to 9-10% is like opening the door for a "Black Swan" event to happen. Before the HF20 we could already be above 10%. Will you put HF20 on hold?
Past performance is no guarantee of future results.
At 10%+ we break the SBD floor, this means sbd will free float and could go to zero. And your mention that only the sbd bagholders will feel the pain? Is just not true, in a scenario like this, steem would go to zero first, followed by the sbd bagholders. Remember, SBD is not being printed, but steem is, more and more. It's like holding a little bird in your fist, and sqeeze all the life out of it.
Then there is only one more thing to do, and that's close the door on our way out.
Based on some of your comments, I don’t know if you fully understand how SBD works.. I’ll try to do a post in the next few days to cover the topic and hopefully your concerns.
It's a problem but I don't see it going to zero. I see it going back to the pennies it was last year which is still pretty bad.
Agreed... but...it can be really really bad, for everyone...