Does anyone know whether we use the total steem supply or the total virtual steem supply when calculating the price SBDs start printing?
As it stands SBDs only start printing when the market cap of SBDs is 10% or less than the total market cap of steem.
However, there are two supplies of steem, there is the total supply of steem and there is the virtual supply of steem which includes the steem that would exist if all the SBDs currently in existence were converted into STEEM.
My question is whether we use the total supply or the virtual supply when trying to find the total market cap of STEEM which is then divided by the supply of SBDs.
Depending on whether we use the total or virtual supply is a difference between SBDs printing at roughly $.265 or roughly $.25.
As you can see, using the virtual supply would mean we are pretty close to printing SBDs again, though I am not sure which one we use....
Anyone know?
I'm pretty sure that they would start printing again at $0.252 based on the current supply. I figured it out a while ago, and watched the transition in real time last time we crossed the threshold from below to above. If my script is right, here are the values:
Lower threshold: 0.252085 <- SBDs start printing here
Upper threshold: 0.280095 <- STEEM rewards stop here
Here are the formulas (using virtual supply):
echo ${STEEM_SUPPLY} ${SBD_STOP_PERCENT} ${SBD_SUPPLY} | awk '{print "Lower threshold: " 10000 * $3 / ($1 * $2) }' echo ${STEEM_SUPPLY} ${SBD_START_PERCENT} ${SBD_SUPPLY} | awk '{print "Upper threshold: " 10000 * $3 / ($1 * $2) }'And we also find that $0.252 number on steemworld (rounded up to 0.25209):
For whatever reason, it seems like that median price value stops updating when SBDs stop printing. Clearly, the current median price isn't really $0.252.
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These numbers look right to me... and it also looks like it takes into account the virtual supply as opposed to just the total supply?
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Yeah, based on my observations last time it crossed the threshold, I think it does.
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As far as I know, when the SBD price is above $3, it will start printing.
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That's not quite how the system works... It works by printing SBDs when the debt ratio of SBDs to the market cap of STEEM falls under 10%. So, in order to figure out what price that is for STEEM we need to figure out whether we use the total steem supply or the total virtual steem supply... of that I am not sure
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Upvoted! Thank you for supporting witness @jswit.
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we use the total virtual Steem supply when calculating the price SBDs (Steem Backed Dollars) start printing. This is because SBDs are designed to be a stablecoin, meaning that they should maintain a value of $1 USD. In order to achieve this stability, the Steemit platform uses a system called the SBD debt ratio to determine when SBDs should be printed or burned.
The SBD debt ratio is calculated by dividing the total virtual Steem supply by the total amount of SBD in circulation. When the SBD debt ratio is above 10%, new SBDs are printed and distributed to users as rewards. When the ratio is below 10%, SBDs are burned, reducing the amount of SBD in circulation and maintaining the stability of the coin.
It's important to note that the total virtual Steem supply is different from the total Steem supply, as it takes into account Steem that is locked up in Steem Power (SP) and cannot be traded on the open market. This means that the total virtual Steem supply is a more accurate measure of the available supply of Steem that can be used to support the SBD price.
In summary, when calculating the price at which SBDs start printing, the Steemit platform uses the total virtual Steem supply.
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@jrcornel it will start printing again at 0.275$ now you can calculate according.
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