Sorry, but your post is not an accurate assessment of the way the rewards pool works. I normally do not self-upvote, but I need to here for visibility. Your post is full of inaccurate information.
Draining the Reward Pool
High SBD prices do not affect the amount of STEEM or SBD that is distributed from the rewards pool. They are completely unrelated. The rewards pool will pay out the same amount of tokens, regardless of whether SBD is trading at $1 or $10. The value of those tokens is what changes. SBD being valued at more than a dollar does not 'drain' the rewards pool.
The only way I can see to stop this value extraction exercise is by converting all the SBD you get to Steem and powering it up.
This is the worst possible thing you can do. In this case you are only getting $1 worth of STEEM per SBD, when you could trade SBD for STEEM (then power it up) and get around $8 worth. Also, you are destorying SBD in the process, which is decreasing the supply - the last thing we want to do when there is surplus demand.
The post I have written is tagged economics as I am speaking from an economics point of view for the majority of this post. Maybe using the the term "Reward Pool" has other meanings but you can't refute the fact that each day the economic value of the Steem token is being drained as a direct consequence of the daily Rewards payouts. So in this context the "Rewards Pool" is being drained. Quite simply there is less value in the pot after people have extracted their SBD to fiat. I have changed the heading on one section of the post to more fully reflect this. I hope this is clearer now.
I have thought long and hard about why Steem has value, why its not a ponzi scheme and all the rest and the conclusion I get is because the users are creating value for the system. Steem is different than other coins because it is creating a circular economy which means it has value and will grow as long as value is not extracted from the system on an unsustainable scale. I have written about this elsewhere and I would urge you to read some of my posts on this.
On the second point thanks for the clarification. People should be converting Steem on the market which is what I do each time I convert my SBD to Steem. I have actually never converted Steem to SBD in the method you have described. Maybe this course of action makes more sense now in the context of the economics argument.
I have made my best attempt to explain a rather complex issue here for the purposes of the community and to promote discussion so I don't appreciate the downvote but thanks for your input.
There is no evidence of this, and I think your belief of this is based on a false understanding of how the rewards pool actually works.
Sorry, but this doesn’t make sense.
I can appreciate that, but there are a lot of posts where this is being discussed, and one that presents information that is not accurate is not adding value IMO. I didn’t ‘nuke’ it though (send the rewards to 0.00) because I don’t believe you had any malicious intent behind posting bad information.
There are a lot of posts where this is being discussed but it seems to me everyone (including me) are getting caught up in the euphoria of free money. Free money always comes at a cost to someone.
I have presented in this post a point of view on the economics of what is happening and the long term economic impacts which I don't believe has been discussed by anyone at all. The topic of the economics of blockchains is not a field that is well developed or discussed in a balanced way, but it is something that is key (in my opinion) to the long term survival of any blockchain project.
Economics is one of the things that make Steem different from other cryptos. Evidence of this is that we have already seen a circular economy develop which doesn't really exist yet in other cryptos.
There are a few corner stones to it, all of which contribute in a small way to give its competitive advantage:
The people that are going to lose on this are the crypto investors who are paying overly high prices for the SBD. It is bad for them, good for us (us being the Steem community).