One new feature in HF is the ability to fund the SPS through beneficiaries. However, since the SPS only operates with SBD, there is now a new logic that will automatically convert the STEEM and SP to SBD tha can be used for the SPS.
What does this mean? How is steem converted to SBD. Is the steem being BURNED?
Yep, the steem is burned and SBD is printed instead.
Fun fact you can do this now yourself with the
convertoperation, it used to be available on the steemit wallet but got disabled when sbd was above a dollar, because the convert operation always assumes that 1 sbd = 1$, so people were converting and losing money.Now is actually a good time to convert though as sbd is below a dollar ;)
Thx for your answer. But how will it operate when we are at 10% Haircut Debt Ratio?
SBD is stopped being printed?
It will be printed regardless as far as I know.