Using the DAO SBDs to buy and burn STEEM: How we can make it happen!
We could make this happen relatively easily...
If you read my post the other day you are already familiar with what I am talking about, but if not, here it is:
The basic premise is that we have a large untapped resource in the name of the Steem DAO where 10% of the overall inflation is going every day only to stack up day after day after day.
This inflation is in the form of SBDs which are trading well over a dollar currently and have been for 2 plus years.
The idea is that we use those SBDs priced over a dollar to buy STEEM on the internal market and then burn them by sending them to the Null account.
This would put significant buy pressure on the STEEM coin on a daily basis, likely raising its price and reducing the liquid supply.
This service would run until SBDs are priced back at a dollar.
Here's how we make this happen...
Now that you have the basic premise of what we are trying to do here, now we have to figure out how to actually make this work...
As it stands now we would need someone to create the bot that uses SBDs to buy STEEM on the internal market any time it has SBDs in the account, and then ship that STEEM to the null account any time it has STEEM in the account.
The purchases could be done on the ask so they go off immediately.
A relatively straight forward script I would think.
Once that is created, we would need someone to put together a proposal which is submitted to the Steem DAO proposal system.
Then we would need votes in the amount of roughly 48 million SP plus to get it past the Return Proposal which is currently blocking proposals (as it should be) in the DAO.
Here's a link to the return proposal and those voting for it:
https://joticajulian.github.io/steemexplorer/#/proposals/0
Between @UPVU and @RME (as well as a couple of their affiliated accounts), we should be able to get the proposal above the return proposal and start buying and burning STEEM almost immediately.
There is no need for a hard fork, there is no need to build any kind of new infrastructure on steemit.com, we just need the bot built and then the votes and it is up and running.
For some further context...
Here's what is going into the DAO currently:
Daily budget: 33124.470 SBD
Total fund: 3312446.989 SBD
Budget for the next hour: 1380.186 SBD
There are 33,124 SBDs going into the Steem DAO per day. If we were to use those funds to buy and burn STEEM with SBDs trading north of $2 per coin, we could be looking at buying and burning almost 400k steem per day...
Not an insignificant amount!
This service can be stopped when/if SBDs fall below a dollar by simply having @UPVU or @RME remove their vote for the proposal and it stops immediately and everything goes back to how it is right now.
There is no telling for sure how much this will help or won't help the price of STEEM or how long it will last before impacting the price of SBDs without actually giving it a try.
What do you say, can we make this happen?
Image Source: https://coincentral.com/what-is-steem/
Let's do it!
Lets get err done! I like your idea of starting with 10% as a test to see how things go without potentially causing too many
distortions.
I was pleased to see this proposal from you yesterday, and feel that it would be a good use of the SBD's. I hope this idea get's the traction it needs.
I'm a small fry but would vote for witnesses who support this idea.
Thank you, and I hope so as well. It doesn't appear like it would take too much to get this going. We really just to get upvu on board with the idea and I think it is ready to roll.
Upvoted! Thank you for supporting witness @jswit.
I have read 2 of your posts related to this idea and seems promising. Let's try to make it happen.
Thanks, and so far it seems like we are moving in the right direction. Fingers crossed.
we appreciate you,
its mind blowing idea
Thank you for the kind words and for the upvotes!
SBD to STEEM and then Steem should convert with SBD for keeping it as stable coin
this is against all my knowledge and understanding
demand should come from people.
not from other "currency" being printed out of thin air
that kind of strategy is not sustainable and would be heavily abused. And it would greatly affect trust towards SBD
What exactly is all this knowledge and understanding you are referring to?! It's simply moving excess value currently residing in SBDs (that aren't even being printed) and transferring that value back to the main STEEM coin. The service will be automated and can be stopped at any time if SBDs fall below a dollar. Did you read the posts?
The currency's being printed already (in the form of SBD) and being stored in the steem.dao account. If this proposal is accepted, then a portion of steem.dao held SBD's would be sold (to lower the value of SBD to $1 - where it was always intended to be) to buy STEEM (which would increase its price).
This proposal would initially be a detriment to users who hold SBD but a benefit to those who hold STEEM.
It makes a lot of sense and has been discussed before. Hopefully this push by @jondoe will see it happen 👍
SBD를 내부거래소에서 반만 steem 으로 구매하고 모두 null에 보내면 둘다 인플레이션을 줄일 수있는 방법이 안닌가요?
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