Mitigating Timing Attacks
Market participants have access to information faster than the blockchain’s three and a half day moving median conversion price can react. This information could be used to benefit of traders at the expense of the community. If there is a sudden increase in the value of STEEM traders could request conversion of their SBD at the old, lower price, and then sell the STEEM they receive a the new higher price with minimal risk.
Steem levels the playing field by requiring all conversion requests to be delayed for three and a half days. This means that neither the traders nor the blockchain has any information advantage regarding the price at the time the conversion is executed.
RE: Simplify Steem blockchain rewards by distributing only STEEM and SP but not SBD