Difference between revisions of "Steem Dollar (SBD)"

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(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 also)
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SBD course isn't fixed, in some times it has been closer to $2 USD.
 
SBD course isn't fixed, in some times it has been closer to $2 USD.
  
==See also==
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==Related articles:==
  
 
* [[STEEM_token]]
 
* [[STEEM_token]]

Revision as of 10:25, 17 June 2017

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_token. 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 are 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.

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.

Notes

SBD course isn't fixed, in some times it has been closer to $2 USD.

Related articles:

Reference