Curious what price of STEEM we need for SBDs to start printing again? Be curious no longer!

in steem •  2 years ago  (edited)

STEEM needs to get to $.2672 for SBDs to start printing again

The steemit.com platform hasn't paid SBDs (steem backed dollars) out in several months.

The reason for this is because the SBD market cap to STEEM total market cap has climbed above the 10% debt limit ratio.

Meaning, the total market cap of SBDs is worth more than 10% of the total market cap of STEEM.

Which means...

We need the market cap of SBDs to drop below 10% of the market cap of STEEM...

All the data we need can be found here on steemworld.org:

image.png

(Source: https://steemworld.org/@jondoe)

Based on those current numbers posted above...

418,204,259 (supply of steem) X .2672 (projected steem price needed) = $111,744,178 (total market cap)

$111,744,178 / $11,712,290 (total market cap of SBDs) = 9.54%

So... based on the calculations above we can see that we need a STEEM price of roughly $.2672 in order for SBDs to start paying out again.

*Note: As more steem gets created every 3 seconds, the price needed to print SBDs drops slightly because the market cap of STEEM grows slightly (if the price of STEEM stays constant).

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Is something happening to Steemit? Some accounts seem to be missing.

image.png

I believe it should probably be based on the virtual supply, not the current supply. According to a script I slapped together some months ago, it would start printing SBDs at 0.252 and it would print only SBDs at 0.28.

Price: $ 0.234
STEEM supply: 464704989
SBD supply (cap): 11713142
STEEM Market Cap (calculated): 108740967
SBD supply (cap) / STEEM CAP: 0.1077
SBD print rate: 0 (calculated), 0 (queried)

Lower threshold: 0.252055
Upper threshold: 0.280062

I have been under the impression it is based on the total STEEM supply for years now. Do you a link to the info that says it's virtual supply?

I don't have a document, but the comments to this post have a reply from @moecki with a link to the relevant code in the github repo.

Interesting. Well hopefully that is correct as it would then take a lower steem price for SBDs to start printing again. :)

I watched it pretty closely the last time it went above and below the thresholds, and it lined up pretty well with the numbers from that script.

Were you watching the 3.5 day average price of STEEM because that's the price it uses for print rates, correct?

From here, I think it uses the median price from the feed history, so that's what I was watching (and what is displayed as "Price" in the sample output I posted above).

Curiously, it seems like the block explorers and the get_current_median_history_price API call stop tracking the actual median once it drops below the 10% threshold, so I think that the reported median from Steem World might actually be the threshold where SBDs will start printing again.

image.png

According to my calculations the current median is actually, $0.234, and the 10% threshold is 0.252057 (which rounds to 0.25206), so I don't completely know how to explain the value that Steem World is reporting for the median price - even though it matches what the API call says. Maybe @steemchiller can clarify.

test

nice calculations!

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Upvoted! Thank you for supporting witness @jswit.

It's been so long, I forgot SBD's were a thing.

It's been so long, I forgot SBD's were a thing.

Certainly has been a long time since I last saw SBD. With the current uptrend, perhaps it will not be so long before they appear again.

This post has been featured in the latest edition of Steem News...

Thanks for that update @jondoe

I was never really sure if STEEM need to reach some price level in relation to usd or in relation to BTC ?

The reason for this is because the SBD market cap to STEEM total market cap has climbed above the 10% debt limit ratio.

Debt limit ratio.
I'm not sure if I understand that part. Any chance you could ellaborate on it and explain like I'm someone with basic knowledge ?

The code is written as such that anytime the total market cap of all SBDs in existence is greater than 10% of the market cap of STEEM, then SBDs do not print. They only print when total SBDs market cap is under 10% of STEEM's market cap. This 10% is known as the debt limit, and it's a ratio of the total market cap of STEEM.

And now we're near to mentioned 10%,, right?