Difference between revisions of "Steem Dollar (SBD)"

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* '''@dantheman''' : [https://steemit.com/steem/@dantheman/introduction-to-steem-dollars-sbd Introduction to Steem Dollars (SBD)] ''April 18th, 2016''
 
* '''@dantheman''' : [https://steemit.com/steem/@dantheman/introduction-to-steem-dollars-sbd Introduction to Steem Dollars (SBD)] ''April 18th, 2016''
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* '''@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 7th, 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 21st, 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 21st, 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''
 
* '''@ausbitbank''' : [https://steemit.com/steemit/@ausbitbank/psa-steem-backed-dollar-printing-has-been-suspended PSA - Steem Backed Dollar printing has been suspended] ''March 2017''

Revision as of 13:49, 12 January 2018

The Steem Dollar (aka 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 loose value.

To try to keep the SD around the $1 mark, 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.

Steem Dollars may also be converted into STEEM in a process that takes 3.5 days.[1] But there is a quickier option using the Internal market.

Examples

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.

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.

Notes

SBD course isn't fixed, in some times like from May to June 2017 it has been closer to $2 USD. In August 2017 it lowered to $0,8 USD.[2]


References

  1. ↑ Steemit FAQ: What is the difference between STEEM, STEEM Power, and Steem Dollars? Retrieved in August 22nd, 2017
  2. ↑ Coinmarketcap.com : Steem Dollars (SBD) Retrieved in August 23rd, 2017

Links

Related articles

External links

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