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RE: Why our 100% Upvote Worth dropped by 40% in SBD?
So essentially the algo changed to give more SP than SBD is my take away. This doesn't make a lot of sense to me economically because by producing less SBD won't that increase the price of each SBD and decrease the price of Steem? This seems very counterproductive to the idea that SBD is supposed to be relatively equal to 1 USD. Maybe I'm missing something....
Unless there are also other things in the works we don't know about . . .
If nothing else is also going to be changed, then this was probably to reduce liquidity a bit and reduce spam content at the extremes of SP, by those with very little SP and those with very much SP compared to the most common users of Steemit.
It appears that there is concern with the falling price of SBD and the hope appears to be sure it keeps at least at the $1 peg - https://steemit.com/witness-category/@yabapmatt/witness-update-sbds-meetups-and-more
Sounds logical... this was also my first idea but i found some documents and it seems there is a formulation to calculate and adjust the feed-rate.
So I guess and hope, it is not decided with feeling.
I think the feeling comes from how witnesses adjust their feed-rate. The feed rate determines how the system will adjust the calculations of SBD/STEEM.
Steem/SBD conversion is still far from market reality.
Current conversion rate is close to 1.
If this rate is used, our upvotes would give half of SBD of todays value.
I found some documents on how this feed rate is adjusted and I am studying these...
FD.