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RE: Beyond the STEEM Whitepaper – 1. Blogging and Curation Rewards Fund; Steem Backed Dollars Creation
It creates the sd out of thin air i.e. one second they did not exist, the next second an account is credited/given X Steem dollars.
Thats not possible. Someone must hold collteral in order to create SD, or am i misunderstanding? SD are lent into existwnce, so someone or thing must provide the collateral.
How the blockchain gets SD is not well explained anywhere i am aware of.