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RE: Why I Love SBD and You Should Too
"Once the price of SBD drops below a US dollar, Steemians switch to the 100% SP reward system and supply of new SBD drops causing a shortage and price goes up."
Not only that, but the witnesses then increase the interest rate, encourage users to put their liquid SBD into savings. Also, they change the ratio of the payouts so the people who don't change to 100% get mote Steem and less SBD. If we choose our witnesses well then it is a great system!
You got it. That is the other mechanism. Witnesses will eventually come around to doing really great things for STEEM. They have already done great things, but that will get even better.