RE: Here's why Steem's witnesses should start paying SBD interest - today
SBDs are currently overvalued relative to the haircut price
They're actually not.
Wed Jun 4 13:17:59 EDT 2025
Price: $0.1390
STEEM supply: 572124217
SBD supply (cap): 9427997
STEEM Market Cap (calculated): 79525266
SBD supply (cap) / STEEM CAP: 0.1186
SBD print rate: 0 (calculated), 0 (queried)Lower threshold: 0.164789
Upper threshold: 0.185134
SBD prediction: 0.843503
The expected price is $0.84 and the actual price (on coingecko) is $0.84.
There's no evidence that this is a weed-killer.
Agree. There's no evidence either way, because it hasn't been tried. It seems likely, though. If someone can get 25% from holding SBDs, but just 15 or 20% with daily posting for a voting service, the decision seems obvious.
And, of course, my point remains that the backout is simple and easy if it doesn't work out the way I'd expect. It's not like this would have to be a permanent change. So, let's generate the evidence - one way or another.
Fair enough, I inferred from the fact that conversions have slowed down and that it's hard to get reasonably-priced SBDs on the internal market that the price generally had gone up, but I didn't check.
The returns available from bot voting are more or less guaranteed by blockchain code, and the continuation of the status quo is partly guaranteed by bots and bot-voters maintaining lots of SP. Returns from SBD interest depend on witness choices which could potentially change arbitrarily with no predictable timing, and shifting assets from SP to SBDs would leave witness control up to those who maintain their SP. (Also, if you're imagining lots of SP getting powered down and sold to buy SBDs, are you factoring the price effects of that into your projections?).
You should establish some parameters for what you would consider enough of an experiment to conclude that this idea doesn't have the effects you hypothesize, because the same "we don't know, we haven't tried doing that exact thing" argument can be extended to but the rate wasn't high enough or you have to give it more time, or any other arbitrary thing.