SEC-S17W1- Influence of SBD on my Growth

Introduction

The reward system on Steemit enables users to earn in STEEM, SBD (STEEM Dollar) and SP (STEEM POWER) while TRX is a bonus reward from the TRON integration into the STEEM ecosystem. Certain factors determine how a user gets his/her payout, and some of these things will be discussed in this contest today.

_{Canva Edit}

My Experience about SBD

As an old user with a few years spent on Steemit, the concept of SBD in the reward system is not new to me. SBD is a debt asset on the STEEM blockchain that was initially designed to control the continuous printing of STEEM as a reward for users on STEEMIT.

_{STEEM market price | Screenshot from CoinMarketCap}

Authors on Steemit can set a preference for rewards payout which can either be:

• 100% Power Up (All rewards in SP).
• 50%/50% (SBD/STEEM/SP).

While authors can set a preference for reward, curators on the other hand can only receive rewards in SP. And the rewards for authors can either be received as SP at 100%, SBD & SP, or STEEM, SBD & SP (this is dependent on the debt ratio).

The concept of debt ratio may be new to you, I implore you to read one of my previous articles about that - Debt Ratio's Impact on the Authors' Rewards on Steem- Understanding the Current Situation.

SBD contribution to my Growth

It's no doubt that SDB has enabled a lot of users to grow on the platform with the opportunity to exchange SBD for more STEEM which is then powered up to have more influence on the STEEM blockchain.

As per my personal experience before circumstances forced me out last year, SBD enabled me to grow my account quite well then. The introduction of a power up scheme under club statuses also enabled users to have more insight into the importance of SP while the abundance of STEEM from my earned SBD was converted to SP.

Within the shorter time I have spent in the previous months, the arrival of SBD has enabled me to grow my SP steadily, having chosen to power up all. Growing on the platform is what matters to me now and SBD is helping in that regard.

My Opinion about SBD

We all can agree that SBD is not satisfying the technology behind its integration into the reward system at the creation of the STEEM blockchain. SBD is a stablecoin created to be the debt asset that maintains parity at 1:1 with the US Dollar such that it relieves the creation of more STEEM into circulation.

SBD stopped performing its initial purpose when it broke the peg above 1 USD some years ago and on the contrary, it now contributes to the creation of more tokens into circulation. Let's take some examples:

• STEEM is projected to a price above $1.
• For instance, if STEEM is trading at $3 and the debt ratio is <= 9%. Authors that utilize 50%/50% payout preference will receive payouts in SBD & SP.
• Provided the SBD still maintains the $1 parity. If a user receives 10 SBD from a payout, he/she would only be able to exchange SBD for 10/3 = 3.33 STEEM.

Now, considering the current state of the SBD price above $1 and the STEEM market price.

_{SBD price chart | Screenshot from CoinMarketCap}

• SBD is trading at $4.15 and STEEM at $0.28.
• Using the same user from the previous illustration, 10 SBD earned can easily be exchanged to 10*4.15/0.28 = 148.2 STEEM. You can see the excess.

Regardless of the excess created by SBD in the current market and its deviation from its initial purpose, it's still the best way to receive rewards by users because it gives more and that contributes largely to users' growth.

In essence, I will choose SBD because it's the pathway to hasten the growth of my STEEM Power and help finances outside Steemit.

The Power of SBD

The reality of SBD breaking above $1 and its inclusion in the reward system when the debt ratio is below < 10% is a true blessing to users. It doesn't only enable users to grow on the platform but outside as well.

A user on club5050 has enough to take care of pending needs that open the way for other sources of income as such no sane user in that kind of situation considers powering down except there is an extremely big problem that requires more.

In the first quarter of 2021 when I joined the platform, I enjoyed the privilege of earning SBD which helped me to grow my account and at the same time remarkably boosted my finances. As a new user, the moment didn't last long and the debt ratio break above 10% affected a lot.

In short, being a triple ORCA on Steemit would be the least of my achievements on the platform if SBD has been printing consistently since 2021 when I joined.

Conclusion

In conclusion, Steem Dollar (SBD) has deviated from its main purpose over the years but at the same time, it has opened a way for users to grow their influence on the STEEM blockchain. The Steem blockchain has remained solid over the years and we can only hope for a better future, seeing the price of STEEM above $1 in the coming months will be a good achievement.

It's quite wonderful to take part in a unique contest like this and I take the pleasure to invite @ninapenda, @meivys, and @irawandedy to take part. Good luck, all.