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RE: Delegated Proof of Stake (DPoS) and Free Market are Incompatible?
Regarding my previous question, this would make the most sense. It was contradictory to trade it freely and keep it at 1 USD. You can peg it to the dollar in a closed system or with a lot of intervention, but the market adapts and puts pressure on it. It is something like the swiss franc which was hold by the state to a lower value, till the market pressure made the regulations to be lift of and the value skyrocketed.
Only a fraction of the entire Steem supply is pegged by SBD. But it's enough to put pressure on the price. If the community could maintain the peg for the amount backed by SBD, then the price of Steem itself should be much more interesting.
Think of SBD like some kind of "vault". Not all the people will keep their assets in a vault, but those who are keeping it, they want the vault to be impenetrable. That's the role of SBD and that's why it doesn't peg the entire supply, leaving the majority of it freely floating on exchanges. So the comparison with Swiss Franc only holds to a certain point.