— SteemCN

o1eh (79) · 4 months ago

No, it is not needed. This opportunity is always available to witnesses. @remlaps wrote about this in detail in his post: Thinking out loud: When should the witnesses start paying interest on SBDs in savings?

$0.14

remlaps (74) · 4 months ago (edited)

I was misremembering the interest rules. It's possible to pay interest on SBDs without a hardfork, but as I understand it now, interest would probably go for all SBDs, not just the ones in savings. @danmaruschak brought this point to my attention, here.

It still might be worth considering, but it changes things up a bit. I guess SBDs on exchanges and SBDs in the SPS would also earn interest.

$0.20

jondoe (85) · 4 months ago

How would we pay interest without a hard fork? Wouldn't this adjust the inflation rate, or at least redirect it?

$0.05

1 vote

remlaps (74) · 4 months ago

AFAIK, it's managed by a witness parameter. I don't know the exact details, but I guess it's basically just an average of the value that's set by the 21 witnesses who validate blocks in each cycle. The blockchain was paying 10 or 15% interest on SBDs when I first got here.

To the best of my knowledge, the capability was never removed. It's just that the witnesses all set their parameters to 0 when prices went down.

$1.73

the-gorilla (75) · 4 months ago

It's just that the witnesses all set their parameters to 0 when prices went down.

Ah, this explains why my SBDs did nothing when I put them in Savings.

$0.05

2 votes

jondoe (85) · 4 months ago

Wow that is really interesting. I have been here since 2016 and I never remember SBDs paying an interest rate... Perhaps it was coded but never actually run? I feel like I would have remembered SBDs paying interest...

$0.00

remlaps (74) · 4 months ago (edited)

I created an infographic back in November, 2016. Here's what I posted at the time:

Obviously, I'm hazy on details, but maybe interest accumulated and paid out once per month? No time now, but maybe I'll check later to see if I can find any payment transactions from the time period.

Update: Found one

$1.17

moecki (71) · 4 months ago

maybe interest accumulated and paid out once per month

Right!

#define STEEM_SBD_INTEREST_COMPOUND_INTERVAL_SEC (60*60*24*30)

Once per 30 days and only if the SBD balance has to by modified.

$1.37

steemcurator03 (52) · 4 months ago

Upvoted by soulfuldreamer through sc03 account

$0.00

moecki (71) · 4 months ago

Yes, the interest rate is determined by us witnesses with the property sbd_interest_rate.
The interest rate contained in dynamic_global_properties.sbd_interest_rate is calculated as the median of the props of the 21 witnesses who validate the blocks in the respective round.
The SBD paid as interest are additionally produced. So even if no SBD are printed. This would of course be counterproductive (currently) .
The inflation rate would be increased by this measure (at least in the current situation), as the current SBD supply would increase and thus also the virtual supply.

$1.72

6 votes

remlaps (74) · 4 months ago

There may be "sweet spots" where printing SBDs causes STEEM prices to rise enough that the virtual supply goes down, even though sbd supply goes up. But, I have no idea how to predict where they are, if that's even possible.

$0.13

1 vote

moecki (71) · 4 months ago

Yes, if the price rises above the printing threshold, things can look very different. The mechanisms in this situation are not quite clear to me either... but who really understands the market :-)

$0.56

o1eh (79) · 4 months ago

Sorry to bother you again. I am not against your proposal, but since we are already exchanging ideas here, I wanted to say something. The economy is a very complex thing, which is influenced by many factors. Often, actions with even the best intentions can cause harm. As I already wrote, I am afraid that the sale of SBD followed by the purchase of STEEM will not be able to bring the expected benefit. With your bot building capabilities, I would consider another option.

From an economic point of view, the ideal would be for someone to buy STEEM on the market and burn it. But no one wants to burn their own money. Maybe you should think about starting a grid bot (or DCA bot):

I am sure you are well aware of the functionality of these tools. After receiving funding from the DAO in SBD, you could run a bot that would trade the SBD/USDT pair. The resulting income could be used to buy and burn STEEM.

The advantages of this method are obvious:

the bot buys back SBD at a lower price, preventing it from falling too much;
for the received income, the bot will be able to be irrevocably bought from the STEEM market and burned;
bot can work forever;
the presence of such a bot should be advertised and then investors will like the idea of investing in a coin that is constantly bought on the market and burned;
potentially we could get both STEEM and SBD price going up.

$0.10

jondoe (85) · 4 months ago

I am not following exactly what you are saying here... If a proposal was created for SBDs that were then sold for USDT (instead of sold for STEEM on the internal market), the end result would be the same as our proposal of sell pressure being put on SBDs no?!

$0.02