The steem ecosystem has been designed to work in a particular way with each and every elements assigned to play their different roles in keeping the wheels of the steem blockchain rolling. The most significant elements being steem, steem power and the steem backed dollars
Just like in some fiction movies where an operative is trained and given specific orders to follow and adhere to stops carrying out those laid down orders and no longer adheres to protocol and instead does things out of their own volition, SBD has gone rogue.
Its no more news that sbd has pumped way beyond our expectation and still holding strong, still looking bullish, doesn’t seem to be getting back into the $1 range anytime soon. Whats the implication of this for steemit platform? Is sbd rewriting the steem’s platform whitepaper?
EXCERPTS FROM STEEM’S WHITE PAPER
The Steem community provides the following services to its members:
A source of curated news and commentary.
A means to get high quality answers to personalized questions.
A stable cryptocurrency pegged to the U.S. dollar.
Free payments.
Jobs providing above services to other members.
SOME MORE EXCERPTS
The primary concern of Steem feed producers is to maintain a stable one-to-one conversion between SMD and the U.S. Dollar (USD). Any time SMD is consistently trading above $1.00 USD interest payments must be stopped. In a market where 0% interest on debt still demands a premium, it is safe to say the market is willing to extend more credit than the debt the community is willing to take on. If this happens a SMD will be valued at more than $1.00 and there is little the community can do without charging negative interest rates.If the debt-to-ownership ratio is under 10% and SMD is trading for less than $1.00 then the interest rate should be increased. This will encourage more people to hold their SMD and support the price.If SMD trades for less than $1.00 USD and the debt-to-ownership ratio is over 10% then the feeds should be adjusted upward give more STEEM per SMD. This will increase demand for SMD while also reducing the debt-to-ownership ratio and returning SMD to parity with USD.Assuming the value of STEEM is growing faster than Steem is creating new SMD, the debt-to-ownership ratio should remain under the target ratio and the interest offered benefits everyone. If the value of the network is flat or falling, then any interest offered will only make the debt-to-ownership ratio worse.In effect, feed producers are entrusted with the responsibility of setting monetary policy for the purpose of maintaining a stable peg to the USD. Abuse of this power can harm the value of STEEM so SP holders are wise to vote for witnesses that can be counted on to adjust the price feed and interest rates according to the rules outlined above.If the debt-to-ownership ratio gets dangerously high and market participants choose to avoid conversion requests, then the feed should be adjusted to increase the rate at which STEEM paid for converting SMD.Changes to the interest rate policy and/or any premiums/discounts on the STEEM/SMD conversion rate should be a slow and measured response to long-term average deviations rather than attempting to respond to short-term market conditions. The blockchain is paying liquidity providers for their service in absorbing short-term demands.It is our belief that these rules will give market participants confidence that they are unlikely lose money by holding SMD purchased at a price of $1.00. We fully expect there to be a narrow trading range between $0.99 and $1.01 for SMD under most market conditions.
excerpts from the white paper shows that SBD is supposed to be a stable currency of the steem’s blockchain that is pegged to the value of USD give or take. Every now and then a little inflation is expected which as stated on the white paper they are measures put in place to checkmate this .
I might be wrong here but I think this is the first time SBD has passed the $4 mark, reached an all time high of $22 in some japanese exchanges and currently trading on most exchanges at different prices that suits it, the lowest I have seen so far being $6.5, SBD is as it is, doing what steem is supposed to do.
With this ongoing situation with steem dollars, a couple of questions going through my mind are
1. Are the steem platform witnesses working to get sbd back to its supposed peg value with the measures put in place to check inflations like this?
2. Is this just a pump or sbd is finding its true value?
3. Will sbd ever get back to the $1 range as it was originally created to be?
4. Is sbd interchanging roles with steem on the platform?
5. What will be implication of this on the steemit platform if sbd keeps mooning?
I truly would like to have these questions answered and I hope to get knowledgeable steemians like 
DID WE SEE THIS COMING?
Sbd is a cryptocurrency and with cryptocurrencies you can never really tell, can a cryptocurrency truly be pegged? We have witnessed bitcoin surpassing all predictions for year 2017. We have had steemians like 
The saying about water always finding its course seems to hold true for cryptocurrencies, they will always find their true value. Time will tell if this thing with sbd is just a pump or sbd growing a mind of its own, refusing to be pegged to usd value and finding its true value .all in all this is good for the steem blockchain and I dont think those laid down measures to keep sbd in check should be unleashed at it. What do you think? Would love to have your opinion in the comment section
image source 1
