SBD was supposed to be a pegged crypto coin. Pegged to round and about one USD. For a while it was and things were stable. There was the promise of a service based economy that could play a big role in leveraging the steemit platform to more than just a producer/consumer model for great content. What if I as an author of fiction could find a cover artist, an editor, and whatever I could need to polish my work before publishing? A stable SBD could provide for that, making the steemit platform more than it is today. Better content, great opportunities for service providers, better platform value for stake holders etc, etc.

But then the pumps started happening, and guess what? Nobody got upset. No witness stood up and thought: Hey, fuck, we need to take aggressive measures to make this peg solid again.

The problem: We don't have a bidirectional peg. We have a unidirectional peg. Bidirectional pegs are a problem to implement. At least, they are if you want the downward peg to be at the same level as the upward peg. You truly need a bit of bandwidth between the upward and the downward peg to avoid all sorts of problems. When SBD was at $10, it was too late to do anything about an upward peg.

But now, as we are back to $1,-, we should really reexamine the idea of a double peg. I would actually like to argue for a quadruple peg, but I'll get to that one later. Let's look at double pegging first.

An upward peg at $ √2 ( $ 1.414)

With a downward peg at $1,-, allowing for a bit of bandwidth, I would like to propose placing a (first) upward peg at $1.41. This amount of bandwidth will allow for natural fluctuations within the confines of the two pegs. This should be a decent start, and a good way to allow for the services economy to start forming.

Two more pegs

At this very moment, the US seems to be heading hard to becoming the center of multiple trade wars. With a peg against the US dollar, these trade wars could throw sands in the wheels of a usable international pegged currency. That is, the USD itself might not be a good enough peg in the possibly volatile future. The Euro or the Yuan might not be a good choice either right now for the very same reason. What it boils down to is that we need a peg for our peg, and silver should give us just that. My proposal would be to consider the following set of four pegs:

• An upper upward peg of 0.1 ounces of silver ($1.62)
• A lower upward peg of $ √2 ($1.41)
• An upper downward peg of $1.0
• A lower downward peg of 0,05 ounces of silver (Today $0.81)

With SBD down where it is today, now would be the perfect time to fix the peg and fix it well. I believe a quadruple peg could allow SBD to make the steem ecosystem best service oriented crypto economy on Earth.

But for this to happen, the devs and witnesses will need to take action now, before we get hit by yet another pump and all the clueless cheering that we have seen, when people were actually happy that pegging turned out not to work.
Pegging truly is about the long-term value of the platform and thereby the long-term value of STEEM. It might be profitable to have a pumped SBD for a short time, even a short time pump undermines the credibility of the platform as a services-suitable economy.