DAILY STEEM REPORT OCTOBER, 28THsteemCreated with Sketch.

in #steemit8 years ago (edited)


SBD printing rate is now at zero. Rewards get now paid in Steem, not in Steem Dollars anymore. What is that all about ?

Let check out first what's the official statement from Dan about this subject:


Steem Dollar Stability

Added functionality to aid in the stability of Steem Dollars. Starting when Steem Dollars are 2% of the market cap, a portional of content rewards will be awarded as Steem instead of Steem Dollars. The rate at which Steem Dollars are printed is 50% of the reward at 2% or less market cap and 0% at 5% or more market cap, linearly extrapolated from 2%-5% market cap. So, at 3.5% market cap content rewards will be 25% Steem Dollars, 25% Steem, and 50% Steem Power.

When Steem Dollars reach 10% of the market cap, the price feed will jump off the peg to keep Steem Dollars at 10% of the market cap and will return to the peg when the reported price feed goes below 10%. Witnesses should still report the real dollar value of Steem for their price feed. The median price feed is automatically capped regardless of what witnesses report.


In other words: You won't be getting steem backed dollars on posts anymore. You will be getting liquid STEEM.

But this could be good for the price of Steem. Why is that so?


As you now, Steem is printed every day, at the moment its a bit more then 1 Mio. Steem per day, plus we have the Whales powering down, so even more Steem is coming on the market. So the amount of liquid Steem or tradable Steem which is on the market is growing every day.

Just did some quick graphs this morning to show you the Steem price in relation to the amount of liquid Steem. The first number in the Excel sheets is the amount of liquid Steem in mio. Second is the Price in cents, and the last the total amount of Steem in mio. 

The more liquid Steem is on the market, the lower the price. Supply and demand ,as simple as that.

On the other hand we have nothing what decreases the amount of liquid Steem, only the exchangers where people can buy steem to power up. But now the rewards for the posts are getting paid in Steem, there is a chance that the liquid Steem starts to decrease, if this happens the price starts to increase again!

We need as well new users and more people who starts to power up, Steemfest could be a gamechanger...


So you don't have to be a Guru to forecast the price of Steem, its just math!

Just watch the amount of liquid Steem :)

If it starts to decrease for a couple of days, price should go up, as simple as that :)


If you like the Report please follow, re-steem, upvote and comment.

Note: 100% of the payout of this post will be paid out in Steem Power!


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We should get a breakout from this wedge soon.

Well buyers market looks good today...

Thanks for posting this explanation, as the STEEM price drops I guess the % to SBD raises very quickly.

yeah, look at it the last days, it raises quick.

Let's hope things improve.

Re-steemed

THX. Btw. will bring you your Pendrive later

Always the easiest upvote of the day. Keep up the good work. Great stats. Stephen

This is cool! Resteemed!

The only way to know what will happen is to wait and see. This is kind of an economic experiment.

I learn a lot by reading your articles! Thanks for that :)

Thanks for reading them :)

These daily reports are great

I don't see them everyday but when I do it is valuable information and because it is daily I can go on to your profile and check back for old posts like I've done today.

upvoted and resteemed

Thanks for the resteem :)

Upvoted, reblogged! 👍it sounds good even though i dont understand much lol! I really know 0 about markets or these things! Lol! Thanks though for shareing! ♨👍♨

Thanks man !