STEEM and SBD supplies after 1 week of SPS burning [burnsteem100]
Last week, I posted a baseline of STEEM and SBD supplies after the initiation of burn proposal #116.
Here's an updated chart after 7 complete days of burning.
I don't see any surprises.
- The SBD supply has been observably reduced (use the axis on the right).
- There is no apparent change in slope for the virtual STEEM supply, the current STEEM supply, or the number of collateralized STEEM (left axis).
Collateralized STEEMis calculated asvirtual supply-current supply
- Not captured here, but the haircut price has dropped from about $0.153 to $0.149627.
- Not captured here, but the SPS wallet has dropped from about 5.2 million SBDs to 4,951,607.959.
As I understand it, all of these results were expected.
In order to start soaking up some of the debt and reduce the size of the virtual supply, we would eventually need the STEEM price to rise above the haircut threshold, or we would need the haircut threshold to drop below the price of STEEM. Until one of those two things happens, the burn proposal is restructuring the debt without changing the amount.
Edited to add: Peripherally related, here's a graph of the changing internal, external, and nominal values of the SPS over time.
All available history
After September 30 (Recent baseline + burn project)
Yes , While the Haircut price is Decreasing at a very tiny rate , i think we are burning very less SBD that it can actually make a huge Difference , We can still hope that SBD price may move upwards and we can use some SBD from DAO to actually buy STEEM from the internal Market and burn them . We still need to observe
TBH, I don't really expect the external price to move far above the conversion price for any lasting time period as long as the STEEM price remains below the haircut price. The two have been tracking pretty closely ever since the Upbit delisting. You can see that pretty clearly in the two visuals I added later, at the bottom. Pure speculation on my part, though. Time will tell.
Buying STEEM and burning that would probably be more productive. That actually would reduce the current supply and virtual supply, and therefore inflation. Also, it would put buying pressure on the price of STEEM, which
shouldmight even raise the price of SBDs (despite the selling pressure) by getting the STEEM price closer to the haircut price. There are trust issues doing it that way, though. I'm not a fan of trusting any single account or team to do it.At one point, some of the witnesses were working towards accomplishing that with a multisig mechanism. Not sure if that initiative is being reinvigorated (it might have depended on Upbit?), but I think that would be the best way to do it.
@remlaps-lite, this is exactly the kind of data-driven analysis that the Steem community needs! Thanks for consistently providing these updates and visual representations of the SBD burn proposal's impact. The graphs clearly illustrate the SBD reduction and help us all understand the mechanics at play with collateralized Steem and the SPS wallet.
It's especially helpful how you tie the observed data back to the expected outcomes. For those of us who aren't always deep-diving into the numbers, your insights are invaluable for understanding the health and trajectory of the Steem economy. I'm curious to see how these trends evolve in the coming weeks. Great work! What are your projections for the next 7 days?