Hey All!
We may have been wondering why we are receiving Steem rewards in our post payouts currently and Steem and Steem Dollars payouts before. It is actually an issue that we need to know as Steemit users.
Technically, Steem Dollars is a token created to be US pegged. It should be expected that SBD should function the same as Tether (USDT). However, demands of SBD (and pumps) cause its value to be broken. It actually has increased its value to 18 US Dollars last December-January period.
But Why are we receiving Steem? Why Steem and Steem Dollars before? It should be All Steem Dollars! What's happening?
The reality is that Steemit has a built in safety net that determines the debt ratio if it exceeds more than 2 - 5%, it will start to reward Steem and Steem Dollars. This is why we are facing Steem and SBD payouts before. The closer the debt ratio to 5%, the higher portion of our rewards to be in Steem. Currently, the debt ratio has increased more than 5% which is why we are all receiving all STEEM rewards.
How to Calculate the debt ratio?
(total SBD in existence / total Steem market cap)
As mentioned by
, "SBD Print rate : 0%" - because the debt ratio is more than 5%.
This problem will be solved when HF20 will be launched.
This will be solved because HF20 will increase its debt ratio to 9%. If that debt ratio doesn't exceed 9%, we will be receiving SBD print rate at 100%. If it will increase from 9-10%, this will also be the time where we will be receiving broken rewards : SBD | Steem | Steem Power. If it will exceed 10%, then we will then be back receiving 100% Steem print rate.
Nine percent will be a big debt ratio which will technically generate more SBDs than before circulating in the market. Since a lot of SBDs will now be circulating, pumps will likely be impossible to happen.
Hope this helped you :)
