Do you enjoy using SBD? Do you appreciate having a stable currency?
I know I do! In fact, SBD was one of the reasons that I enjoyed using the platform from the very beginning. In a very real way, SBD was the very thing which gave me faith in the platform. I didn't feel like I had to rush to cash out my earnings and put them somewhere safe. With the confidence that SBD instilled in me, I was able to settle in and consider my involvement worthwhile in the long term.
I even posted about it not long after joining.
I am quite sure that SBD helps to provide the conditions that will enable robust growth of the platform when the time comes. Users like me, with years of experience using bitcoin, can appreciate the insulation from volatility. And it will be a great advantage when bringing new users from outside of crypto, that we don't force them to confront the daunting prospect of wild swings in the real value of their accounts.
Growth of social platforms relies at least as much on user retention as it does on acquisition. Driving away potential users who aren't prepared to assume a significant amount of risk sabotages our potential to grow and increase the value of the platform.
And speaking of value... SBD helps retain the value of the platform. In the absence of SBD, the only way for users to realize the value of their account is to sell their STEEM on an exchange for fiat or bitcoin. The price of STEEM faces downward pressure when this occurs. Alternatively, if a user has SBD that they would like to trade for an external currency, the STEEM price is hardly impacted by the transaction. SBD allows users to realize the value of their Steem holdings without negatively impacting the market cap of the platform. That's no small thing.
Witnesses have been working diligently for months to ensure the stability of SBD. We've done so under the assumption that SBD is critical to the success of the platform.
In fact, one of the most moving articulations of the vision of Steemit is Dan's plan for world domination.
Under no uncertain terms, the establishment of a stable currency was a prerequisite for the other revolutionary goals of the platform.
In light of that, I was alarmed to learn about a recent suggestion to remove the option for Steemit posters to select a liquid payout.
The proposal suggests limiting the options of Steemit posters to receiving either entirely SP or no payout at all.
If the proposal were to go through, authors would receive no liquid post rewards.
Currently, authors receive liquid rewards as a combination of SBD and liquid STEEM, determined by the debt load. The debt load is largely a function of the market price of STEEM. In order to prevent the debt load from climbing too high, SBD rewards are throttled when the debt ratio increases (typically due to a falling STEEM price).
Under the proposal, users of steemit.com will no longer receive liquid rewards at all. If this were to be adopted, no new SBD would be produced aside from interest payments on existing balances.
In order to establish SBD as a viable currency, it must be created and distributed widely across the platform. Halting SBD production regardless of the debt load is an obvious step towards eliminating SBD entirely. The existing supply will soon become concentrated in too few hands to function as a currency.
The proposal is deeply flawed even without considering the existential risk it poses to SBD. It doesn't have to be viewed in the context of a larger strategy of eliminating SBD. However, I feel that is the most alarming aspect of the issue.
I would encourage everyone to view the proposal, and examine the rationale that Val provides (citing Dan). Read through the concerns that have already been raised in response... And since the issue has been tagged "feedback-requested", feel free to add your own remarks... Hopefully in support of SBD! ;)