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Though everything mentioned in Steemit FAQ, here you made it more elaborate. Very helpful and thanks for the effort.

I doubt if the SBD is necessary, since its peg was vastly violated in both directions.
Whether it is necessary or not, I oppose enforcing the peg, especially when it requires violation or otherwise unwanted changes of other parameters such as the debt limit (STEEM worth of Total SBD in circulation).
I do love the internal market and wish it included more currencies.
It is the only cryptocurrency exchange that worked for me so far.

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Great post! You've earned a 14.29% upvote from @dolphinbot

Thanks the information has got lot of clarity and it will become easier for its user to understand the concept

Thank you very informative and helpfull.

thanks for all the great work - I've been so confused about how everything worked this past month but you broke it down very concisely. BTW - I'm watching firefly with my wife (her first time) right now - just watched the first episode - We both really dig your Witness voting animation. Keep up the hustle!

One of the best ones I have seen, Great Job!

When you got to explain.... it's kind of broken.

The majority of users here... let's admit it.... ARE PEASANTS.
When the hell did a peasant ever attend an economics class.

It's either I have one sheep.. or the fucken wolf now has my one sheep!

Many wolves here......

Peasants hold a few threads of wool... that's about it.
Not even enough to make a beannie.

Of course they're confused.

Sameeeee, I didn't know anything of what was said here T_T I had even read the WP and didn't understand anything. But now everything that I read in the whitepaper makes sense thanks to Marky's explanation. I feel enlightened. :O

I skimmed the whitepaper - but to be honest all i saw was a place to blog / a chance to make some coin with no real cost of entry - and when trying to search for answers here - a lot of the posts I found were written by ppl who speak/ write english as a second language - and truthfully not that well - It just made me more confused - I was holding off voting for a witness - Marky just got my vote.

This is a very helpful explaination, but I have one question, what is an mVEST? Thanks for helping the wider community by helping us understand steemit, @themarkymark !

I am so using this meme when I finally become a minnow!

Oh wow lol

From one brain fart er to another:

This part of your post made me crack up!

"The comment was in response to the post If you could change one thing about STEEM/Steemit, what would it be?.

The question in itself is inaccurate as STEEM Power doesn't exist, it isn't a currency."

Not to gainsay the information in your post, which I found helpful, but nothing on the internet exist. None of the corporation, companies or websites actually exist. In reality they are someone imaginations (brain farts) made real virtually and is why it made me laugh. One could say that crypto currencies don't actually exist, nor do the values pro ported exist and is what makes crypto fiat currency's, which have a future value of 0.

Voted for you as a witness because your explanations are something that I can understand. Steemians need that more than most people will ever know.

thanks i now know about steem power :) but still dont see why we have steem and steem dollars its not pegged any more to 1 usd so it is pointless having it only need sp and 1 other.

We are trying to bring the peg back, but witnesses have the tools to push the peg up if SBD goes down, but don't have the correct tools to push it down if it goes up.

ic, why did they remove it to begin with

They didn't remove it, STEEM and SBD got listed on a Korean exchange and laymen with no experience in STEEM fomo'd (fear of missing out) and bought SBD instead of the core token STEEM which caused it to moon. Ever since it hasn't quite been the same.

Do you think that this will be solved with the next hardfork?

No, there is nothing in the next hard fork that will influence SBD price or give us witnesses more tools to do that. The next hard fork hasn't been finalized and may change.

Good explanation.

As I understand it, an SBD is a promise from the blockchain to pay the holder $1 USD worth of STEEM in exchange for it.

Yep, you read it right. You hold 1 SBD and, in theory, you should be able to get 1 USD worth of Steem at any moment in the future that you decide to exchange it.

Unless the SBD/STEEM ratio gets right up to 10%, at which point I think this isn't totally honoured.

Anyone for a haircut?

Let's hope not! I think the Steem price would have to fall to about $0.40 before that.

If the idea was to peg SBD to the USD why did they not peg it in the first place rather that having a peg that just prevented it from falling below 1 USD ?
Is this just snafu ? or is it a case of people assuming one thing when reality is something completely different ?

They did peg it, the problem is they didn't create enough tools to push it down. The main concern was it falling, I don't think it spiking was a major worry.

We have ways to push it down, but they cause other effects that can have undesirable results.

According to Dan L (i cant be bothered finding the spelling of his last name as you know who i am talking about) it was never pegged to stop it from going up only pegged to stop it falling below.

I can see that it may be useful to have a stable price.