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RE: STEEM DOLLARS (SBD) - Nice triangle - Break Out soon
How a witness can influence the price? i would like to understand this, thanks.
How a witness can influence the price? i would like to understand this, thanks.
Steem blockchain "prints" some percent of SBD for every STEEM token in each block. Witnesses can regulate this percent to be higher if SBD price is higher than expected. More cap = less price overall.
In short story. It is more complicated in real :)
Thanks for explaining this. Is there anyway to get a read on what witness are going to do in advance?
Thank you of the info. I was not aware about that part. But why the SBD is still so high so?
¯\_(ツ)_/¯
I was thinking the same thing. If SBD is supposed to be around $1, it's kind of weird to me that it's been increasing so much
Why is the process controlled by witnesses? If the point is to regulate SBD to the $1, shouldn't it be possible to determine the rate automatically?
The witness are deciding which interest rate they give to the SBD (look your wallet, you will see an interest rate defined). The lower is the value of the SBD compared to 1$, the more they will increase the interest rate to try that people stack them. But now that we are higher than 1$, the interest rate is at 0 but they cannot do something more to my knowledge.
Thank you, it is not so easy to understand all the mechanism. thanks.