RE: SBD Burn Proposal – Let’s Get Rid of What We Don’t Need -- Burn of 1.05 Million SBD to Strengthen Steem’s Economic Foundation

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RE: SBD Burn Proposal – Let’s Get Rid of What We Don’t Need -- Burn of 1.05 Million SBD to Strengthen Steem’s Economic Foundation

lifetrail (73)in #proposal • last month

Thanks so much! Finally I am starting to understand it, lolz.
Now, a follow up question - why 9? Is this a constant value or it could change under some conditions?

80k STEEM minted for 23 hours, wow (on a separate note)

last month in #proposal by lifetrail (73)

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moecki (73) last month

The 9 is constant (at the moment – this could only be changed by a hard fork).

I quote from the code comment:

This block limits the effective median price to force SBD to remain at or below 10% of the combined market cap of STEEM and SBD.

For example, if we have 500 STEEM and 100 SBD, the price is limited to 900 SBD / 500 STEEM which works out to be $1.80. At this price, 500 Steem would be valued at 500 * $1.80 = $900. 100 SBD is by definition always $100, so the combined market cap is $900 + $100 = $1000.

80k STEEM minted for 23 hours, wow (on a separate note)

Yes, we are currently experiencing very high inflation, even though inflation from the block protocol has been decreasing. This is because the virtual supply is currently very high. However, less STEEM will be printed in the near future, as can be read here.

$0.27

4 votes

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lifetrail (73) last month

Thanks for that extra piece of info, it makes sense, I suppose.
You're right, inflation seems too high to me and I saved that read for a second go.

$0.23

3 votes