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RE: Math of Steem: Where does the profit from voting bots come from?
OK. I needed to read this. It’s a bit late here in Australia so some of it went over my head so I’ll be needing to reread it again to understand it all.
Sorry for my ignorance and if this is a stupid question (wouldn’t be the first time I’ve asked stupid questions), but what’s an SBD peg?
Thanks mate
The intended system design of Steem from the beginning was that SBD would be a stable store of value that was pegged to USD, so it always held a value of $1. All of the payout systems are designed as if this were true. For instance, if SBD were $1, the number at the bottom of your posts would be USD instead of the difficult-to-understand hybrid we have now.
But no plan ever survives contact with the enemy, as my friend Lois likes to say. The actual market has been valuing SBD quite a bit higher, which makes everything that was designed for it to be $1 act very strangely.