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). 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. 
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 steemd.com ). And the second one is using the Internal market, which price could be very different from the first due to speculation.
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.
- Steemit FAQ: What is the difference between STEEM, STEEM Power, and Steem Dollars? Retrieved in August 22nd, 2017
- Coinmarketcap.com : Steem Dollars (SBD) Retrieved in August 23rd, 2017
- Coinmarketcap - SBD : https://coinmarketcap.com/currencies/steem-dollars/ Retrieved in January 18, 2018
- @dantheman : Introduction to Steem Dollars (SBD) April 18, 2016
- @alexc : Now you've been paid in Steem Dollars - what should you do? July 4, 2016
- @donkeypong : Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy September 7, 2016
- @krnel : Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?" December 21, 2016
- @ausbitbank : PSA - Steem Backed Dollar printing has been suspended March 2017
- @biophil : Why SBD is trading so high (and how you can help) April 17, 2017
- @steevc : Can SBD work with such crazy numbers April 2017
- @chitty : We need more Steem Dollars April 2017
- @clayop : Toward Mass Adoption of Steem Dollar: Is Pegging Really Important? April 2017
- @timcliff : Saving SBD - Proposal to Restore the $1 USD / $1 SBD Peg May 2017
- @someguy123 : SBD is no longer $1, what do we do? (Witness Discussion) May 2017
- @sykochica : Answering Common Questions: Steem, Steem Power, Steem Dollars and What Should I do with them? June 2017
- @shenanigator : Why The Price Of Steem Dollars Is Way Up While All Other Cyrpto Prices Are Crashing June 2017
- @nanzo-scoop : The Flying Pig have landed… Time to stack up them Steem Dollars? June 2017
- @chrisaiki : Stable cryptocurrencies : BitUSD, USDT, Bit20, VIVA, HERO, X8. August 22, 2017
- @sndbox : How to Convert SBD to Steem Power - A Visual Guide to Powering Up October 10, 2017
- @biophil : SBD trading at a premium? Let's print some SBD! November 28, 2017
- @cryptographic : A SBD-USD Hard Peg? At What Cost? December 7, 2017
- @lordoftruth : SBD is $13 / Top Gaining Now / A Picture is Better Than One Thousand Words December 8, 2017
- @aggroed : The benefits of inaction: a defense of a high SBD. December 9, 2017
- @jga : Steem proposal: Possibility to transform from steem to sbd in order to reduce speculation December 9, 2017
- @stephenkendal : 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 : STEEM to SBD Flip? Is it happening? January 2, 2018
- @buggedout : Speculation killed the STEEM DOLLAR Utility January 8, 2018
- @trogdor : SBD trading volume is EXPLODING!!! January 20, 2018
- @dragosroua : There's Something VERY Strange Happening With STEEM and SBD In The South Korean Exchange Upbit! January 20, 2018
- @reggaemuffin : Witness Discussion – SBD price and reverse peg January 23, 2018
- @timcliff : I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.) May 28, 2018
- @themarkymark : Well, there it is. June 24, 2018
- @whatageek : 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
- WalletInvestor : 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 : Hayek and Stablecoins Written by Qiao Wang, published in 4/28/2018
- Global Coin Report : 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 : What is a Pegged Cryptocurrency? Written by JP Buntix, published in 5/14/2017
- Boxmining YouTube Channel : STEEM Explained: STEEM, STEEM Power and SBD Video tutorial by @boxmining, published in 5/8/2017
- Jakobian : Steemit Social Network | Steem Dollars Cryptocurrency Investment Written by Prezzy, published in 4/17/2017
- Alt-M : Dollar-Denominated Cryptocurrencies: Flops and Tethered Success Written by Larry White, published in 4/6/2017
- 99 Bitcoins : Making Money with Steemit (Steem Dollars and Steem Power explained) Written by Ofir Beigel, published in 10/14/2016
- Andrew Levine YouTube Channel : Steemit 101 - Steem, Steem Dollars, and Steem Power Video tutorial by Andrew Levine @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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