I understand market mechanics, trading, supply/demand etc very well, but I’m a bit confused by this:
STEEM FAQ’s
Will 1 Steem Dollar always be worth $1.00 USD?
The market value of a Steem Dollar is dictated by the supply and demand of the token. Therefore it is possible for 1 SBD to be worth more or less than 1 USD depending on market conditions. However, the network's SBD conversion feature serves as a mechanism to hold Steem Dollars within a small margin of the value of USD.
The networks SBD conversion feature serves as a mechanism to hold Steem Dollars within a SMALL MARGIN of the value of USD?
Is a small margin 200% over the value of a $1?
What is the so called conversion feature mechanism that is obviously not working?
Not that I give a shit. . . Just oftly strange. .
Peace!