Burn Proposal 116 Has Concluded
The burn proposal I initiated, Proposal 116, has officially concluded after being fully funded without a single day of interruption. Over the 30-day period, this proposal successfully burned slightly more than 1 million SBD.
Results Summary
The proposal delivered results consistent with expectations, with no major surprises:
- SBD Supply: Decreased from 9.1 million to 8.1 million
- SPS Wallet: Declined from 5.2 million to 4.2 million
- Haircut Price: Dropped from approximately $0.152 to $0.136391
Price Impact Analysis
As @remlaps noted in his analysis:
"With the present median STEEM price of $0.0750 and haircut price of $0.136391, the blockchain's conversion rate for SBDs is about $0.55. The external price (via @coingecko) is $0.57, so a little off from the conversion rate, but close. At the original haircut price, we'd see a conversion rate of $0.493. So, there's an argument to be made that our little burn experiment might have raised the price of SBDs by about 12%. Stated another way, the expected price of SBDs would be 10% lower without this burn activity."
While surface-level changes may appear modest, I believe this initiative had a positive impact on the Steem ecosystem.
Inflation and Supply Metrics
As anticipated, there has been no change in trend for:
- STEEM supply
- Virtual STEEM supply
- Collateralized STEEM values
Consequently, there has been no impact on overall inflation rates.
Future Proposal Under Discussion
There is ongoing discussion about launching a new proposal with a modified approach. Instead of directly burning SBD, the proposed mechanism would:
- Use SBD to purchase STEEM from the internal market
- Burn the acquired STEEM
This alternative strategy could:
- Attract arbitrage traders to the ecosystem
- Create buy pressure on STEEM on external exchanges
- Generate more dynamic market activity
It's important to note that this approach would also introduce sell pressure on SBD. If this proposal moves forward, it will be interesting to observe the market dynamics and overall impact on both assets.
Thank you to all community members who supported Proposal 116. Your participation strengthens the Steem economic foundation.