View source for Steem Dollar (SBD)

The Steem Dollar (aka Steem Based Dollar, Steem Backed Dollar or SBD) is a token that is meant to be worth about $1 USD, making its value much more stable compared to [[STEEM]] (see [[STEEM Tokens]]). To be a bit more technical, a Steem Dollar is a promise to pay one dollars worth of Steem when it's redeemed.

The benefit of Steem Dollars is that business can accept them more comfortably since they have a more stable value. Can you imagine being a shop owner and trying to sell your $50 product for STEEM which a couple months ago would have been for 500 Steem compared to today being less than 50. Pricing their products and services are much easier when using a stable value, as well as knowing that what they've already been paid, won't lose value.

===Creation of SBD===
The unique way to create more SBD is through the content creation. The authors receive their payments in [[STEEM Power (SP)]] and [[Steem Dollar (SBD)]], and they can select the percentage of each one, with 50% of steem power as the minimum. The first payouts were made on [[July 4th]], 2016.

===How it works===
The SBD can be redeemed at any time by the users (the process takes 3.5 days<ref>'''[[Steemit]] FAQ''': [https://steemit.com/faq.html#What_is_the_difference_between_STEEM__STEEM_Power__and_Steem_Dollars What is the difference between STEEM, STEEM Power, and Steem Dollars?] Retrieved in August 22nd, 2017</ref>). The blockchain takes and destroys the SBD and next it creates new STEEM. The rate of conversion is calculated using the price in the market. If STEEM course is at 10 cents, one Steem Dollar could be redeemed for 10 STEEM. When STEEM is at 2 USD, a Steem Dollar would redeem for 0.5 STEEM. In this order its price tries to be stable and pegged to 1 USD.

===Problems to be pegged to 1 USD===
SBD course isn't fixed, in some times like in August 2017 it lowered to 0.8 USD, but in December 2017 it raised to 12 USD. <ref>'''Coinmarketcap.com''' : [https://coinmarketcap.com/currencies/steem-dollars/ Steem Dollars (SBD)] Retrieved in August 23rd, 2017</ref>

If the price of SBD is less than 1 USD, the people can redeem it for Steem worth in 1 USD. In this order, its price will rise. However, if the price of SBD is more than 1 USD there is no an easy way to reduce its price. This is because the unique way to increase the supply is through posting.

Also, Steemit's Witnesses (see [[Steem_Witness]]) can change the interest rate paid (quarterly) for holding them in your wallet. Lately, this interest rate has been 0% with the SBD price being higher than desired. When it gets near or under the value of $1 USD, we will start seeing the interest rate increase.

===Ways to convert to STEEM===
There are 2 ways to convert it into STEEM: The first one is using the blockchain and the guarantee of 1 USD (its price can be seen on [http://steemd.com/ steemd.com] ). And the second one is using the [[Internal market]], which price could be very different from the first due to speculation.

===Predecessor===

[[Dan Larimer]], creator of the [[Steem]] [[Blockchain]], had the first insight to create a US Dollar pegged cryptocurrency with [[BitUSD]] and [[BitShares]] [[Blockchain]]. In June 2nd, 2013, he published the first idea of [[BitUSD]] in [[Bitcoin]] Forum – Creating a Fiat/Bitcoin Exchange without Fiat Deposits (see [[BitShares:Proposal post]]) – including a [[BitShares]] white paper.


==References==

<references />

==Links==

* '''Coinmarketcap - SBD''' : https://coinmarketcap.com/currencies/steem-dollars/ ''Retrieved in January 18, 2018''
* '''@dantheman''' : [https://steemit.com/steem/@dantheman/introduction-to-steem-dollars-sbd Introduction to Steem Dollars (SBD)] ''April 18, 2016''
* '''@alexc''' : [https://steemit.com/steem/@alexc/now-you-ve-been-paid-in-steem-dollars-what-should-you-do Now you've been paid in Steem Dollars - what should you do?] ''July 4, 2016''
* '''@donkeypong''' : [https://steemit.com/steemit/@donkeypong/still-confused-by-steem-steem-dollars-and-steem-power-the-power-plant-analogy Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy] ''September 7, 2016''
* '''@krnel''' : [https://steemit.com/ned/@krnel/ned-on-sbd-does-the-community-want-to-continue-to-be-paid-out-in-steem-dollars Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?"] ''December 21, 2016''
* '''@ausbitbank''' : [https://steemit.com/steemit/@ausbitbank/psa-steem-backed-dollar-printing-has-been-suspended PSA - Steem Backed Dollar printing has been suspended] ''March 2017''
* '''@biophil''' : [https://steemit.com/sbd/@biophil/why-sbd-is-trading-so-high-and-how-you-can-help Why SBD is trading so high (and how you can help)] ''April 17, 2017''
* '''@steevc''' : [https://steemit.com/steem/@steevc/can-sbd-work-with-such-crazy-numbers Can SBD work with such crazy numbers] ''April 2017''
* '''@chitty''' : [https://steemit.com/trading/@chitty/we-need-more-steem-dollars We need more Steem Dollars] ''April 2017''
* '''@clayop''' : [https://steemit.com/steem/@clayop/toward-mass-adoption-of-steem-dollar-is-pegging-really-important Toward Mass Adoption of Steem Dollar: Is Pegging Really Important?] ''April 2017''
* '''@timcliff''' : [https://steemit.com/sbd/@timcliff/saving-sbd-proposal-to-restore-the-usd1-usd-usd1-sbd-peg Saving SBD - Proposal to Restore the $1 USD / $1 SBD Peg] ''May 2017''
* '''@someguy123''' : [https://steemit.com/witness-category/@someguy123/sbd-is-no-longer-usd1-what-do-we-do-witness-discussion SBD is no longer $1, what do we do? (Witness Discussion)] ''May 2017''
* '''@sykochica''' : [https://steemit.com/steem-help/@sykochica/answering-common-questions-steem-steem-power-steem-dollars-and-what-should-i-do-with-them Answering Common Questions: Steem, Steem Power, Steem Dollars and What Should I do with them?] ''June 2017''
* '''@shenanigator''' : [https://steemit.com/crypto/@shenanigator/why-the-price-of-steem-dollars-is-way-up-while-all-other-cyrpto-prices-are-crashing Why The Price Of Steem Dollars Is Way Up While All Other Cyrpto Prices Are Crashing] ''June 2017''
* '''@nanzo-scoop''' : [https://steemit.com/steem/@nanzo-scoop/the-flying-pig-have-landed-time-to-stack-up-them-steem-dollars The Flying Pig have landed… Time to stack up them Steem Dollars?] ''June 2017''
*  '''@chrisaiki''' : [https://steemit.com/crypto/@chrisaiki/stable-cryptocurrencies-bitusd-usdt-bit20-viva-hero-x8 Stable cryptocurrencies : BitUSD, USDT, Bit20, VIVA, HERO, X8.] ''August 22, 2017''
* '''@sndbox''' : [https://steemit.com/toolkit/@sndbox/how-to-convert-sbd-to-steem-power-a-visual-guide-to-powering-up How to Convert SBD to Steem Power - A Visual Guide to Powering Up] ''October 10, 2017''
* '''@biophil''' : [https://steemit.com/sbd/@biophil/sbd-trading-at-a-premium-let-s-print-some-sbd SBD trading at a premium? Let's print some SBD!] ''November 28, 2017''
* '''@cryptographic''' : [https://steemit.com/trading/@cryptographic/a-sbd-usd-hard-peg-at-what-cost A SBD-USD Hard Peg? At What Cost?] ''December 7, 2017''
* '''@lordoftruth''' : [https://steemit.com/steemit/@lordoftruth/sbd-is-usd13-top-gaining-now-a-picture-is-better-than-one-thousand-words SBD is $13 / Top Gaining Now / A Picture is Better Than One Thousand Words] ''December 8, 2017''
* '''@aggroed''' : [https://steemit.com/sbd/@aggroed/the-benefits-of-inaction-a-defense-of-a-high-sbd The benefits of inaction: a defense of a high SBD.] ''December 9, 2017''
* '''@jga''' : [https://steemit.com/utopian-io/@jga/steem-proposal-possibility-to-transform-from-steem-to-sbd-in-order-to-reduce-speculation Steem proposal: Possibility to transform from steem to sbd in order to reduce speculation] ''December 9, 2017''
* '''@stephenkendal''' : [https://steemit.com/investors-group/@stephenkendal/now-the-steem-blockchain-is-up-and-running-and-battle-proven-will-steem-dollars-be-de-pegged-from-the-usdusd-dollar-in Now the Steem Blockchain is up and running and "battle proven", will Steem Dollars be de-pegged from the $USD dollar in preparation and anticipation of the roll out of Smart Media Tokens?] ''December 10, 2017''
* '''@deanlogic''' : [https://steemit.com/steem/@deanlogic/steem-to-sbd-flip-is-it-happening STEEM to SBD Flip? Is it happening?] ''January 2, 2018''
* '''@buggedout''' : [https://steemit.com/steem/@buggedout/speculation-killed-the-steem-dollar-utility Speculation killed the STEEM DOLLAR Utility] ''January 8, 2018''
* '''@trogdor''' : [https://steemit.com/sbd/@trogdor/sbd-trading-volume-is-exploding SBD trading volume is EXPLODING!!!] ''January 20, 2018''
* '''@dragosroua''' : [https://steemit.com/steem/@dragosroua/there-s-something-very-strange-happening-with-steem-and-sbd-in-the-south-korean-exchange-upbit There's Something VERY Strange Happening With STEEM and SBD In The South Korean Exchange Upbit!] ''January 20, 2018''
* '''@reggaemuffin''' : [https://steemit.com/witness-category/@reggaemuffin/witness-discussion-sbd-price-and-reverse-peg Witness Discussion – SBD price and reverse peg] ''January 23, 2018''
* '''@timcliff''' : [https://steemit.com/steem/@timcliff/i-submitted-my-first-hardfork-pull-request-to-the-steem-blockchain-updates-to-the-sbd-print-rate I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.)] ''May 28, 2018''
* '''@themarkymark''' : [https://steemit.com/steem/@themarkymark/well-there-it-is Well, there it is.] ''June 24, 2018''
* '''@whatageek''' : [https://steemit.com/sbd/@whatageek/if-we-are-going-to-add-measures-to-keep-sbd-pegged-now-might-be-the-time If We Are Going To Add Measures To Keep SBD Pegged, Now Might Be The Time] ''June 27, 2018''
* See more: [[Steem Dollar (SBD):Links]]

==Related articles==

* [[BitShares]]
* [[BitUSD]]
* [[STEEM]]
* [[Steem Exchanges]]
* [[STEEM Tokens]]
* [[STEEM Power (SP)]]

==External links==

* '''WalletInvestor''' : [https://walletinvestor.com/forecast/steem-dollars-prediction  Steem Dollars Prediction, SBD Forecast Price Charts - Is Steem Dollars a Good Investment?] ''Written by unsigned, retrieved in 12/26/2017''
* '''Qiao Wang Medium Blog''' : [https://medium.com/@QwQiao/hayek-and-stablecoins-3c7f3291d728  Hayek and Stablecoins] ''Written by Qiao Wang, published in 4/28/2018''
* '''Global Coin Report''' : [https://globalcoinreport.com/heres-take-advantage-steem-dollars-sbd-run-right-now/ Here’s How To Take Advantage Of The Steem Dollars (SBD) Run Right Now] ''Written by Samuel Rae, published in 12/8/2017''
* '''The Merkle''' : [https://themerkle.com/what-is-a-pegged-cryptocurrency/ What is a Pegged Cryptocurrency?] ''Written by JP Buntix, published in 5/14/2017''
* '''Boxmining YouTube Channel''' : [https://www.youtube.com/watch?v=gS6BP3RxJFs STEEM Explained: STEEM, STEEM Power and SBD] ''Video tutorial by [https://steemit.com/steemit/@boxmining/steem-explained-steem-steem-power-and-sbd @boxmining], published in 5/8/2017''
* '''Jakobian''' : [http://www.jackobian.com/threads/steemit-social-network-steem-dollars-cryptocurrency-investment-review.50863/ Steemit Social Network | Steem Dollars Cryptocurrency Investment] ''Written by Prezzy, published in 4/17/2017''
* '''Alt-M''' : [https://www.alt-m.org/2017/04/06/dollar-denominated-cryptocurrencies-flops-tethered-success/ Dollar-Denominated Cryptocurrencies: Flops and Tethered Success] ''Written by Larry White, published in 4/6/2017''
* '''99 Bitcoins''' : [https://99bitcoins.com/making-money-with-steemit-steem-dollars-and-steem-power-explained/ Making Money with Steemit (Steem Dollars and Steem Power explained)] ''Written by Ofir Beigel, published in 10/14/2016''
* '''Andrew Levine YouTube Channel''' : [https://www.youtube.com/watch?v=g2TU6lyu90I Steemit 101 - Steem, Steem Dollars, and Steem Power] ''Video tutorial by  Andrew Levine [https://steemit.com/@andrarchy @andrarchy], published in 7/15/2016''

==In other languages==

* [[Español]] (Español latnoamericamo) : [[Steem Dollar (SBD) (es)]]
* [[日本語]] (Japanese) : [[Steemドル（SBD）]]
* [[Bahasa Indonesia]] (Indonesian) : [[Steem Dollar (SBD) (id)]]

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[[Category:Economy]]