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RE: What if we used the SBDs created every day in the DAO to buy and burn STEEM?

in #steemlast year

I like all suggestions that could potentially benefit STEEM. But let's simulate what will happen if this proposal is implemented. Every day a certain amount of SBD will be sold and STEEM bought. The price of SBD will start to go down and STEEM will go up. The whole community will know that SBDs will be sold all the time. It will no longer make sense to keep SBD and everyone will rush to sell them as soon as possible. This will cause the price of SBD to fall more rapidly and the price of STEEM to rise more rapidly. Eventually the price of SBD will fall below $1. As we know, under these conditions, 1 SBD can be exchanged for an amount of STEEM equivalent to $1. Absolutely all authors will receive SBD and massively use the opportunity to exchange them for a larger amount of STEEM. As a result, the emission of STEEM will increase significantly. Authors will start selling more STTEM and no further price increase will occur. The price will begin to fall due to strong selling pressure. In my opinion, this offer will be useful until the price of SBD approaches $1.

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The service can always be stopped if/when SBDs fall under a dollar...

Yes, probably this is how it will be necessary to act.

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