SBD interest: Where does it come from?steemCreated with Sketch.

in steem •  7 years ago 

Recently we have been seeing a tiny APR for our beloved SBDs. One of the things I would like to understand is where this APR is coming from. Does the blockchain simply hand the APR to the SBD holders, and thus create the money out of thin air or does the APR come out of the block reward that would otherwise go somewhere else?

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It is essentially created out of thin air as you put it. The additional SBD is not taken out of any of the other funds that are set at the blockchain level (author/curator rewards, SP interest, and witness payments).

Cool. I like this.

So this is actually creating a little bit of inflation somehow then. Interesting. I have to think about how this will affect the economy. I still think that SBD is about the best pegged crypto out there, although its market cap is too small to really be useful.

I still would love your original idea of allowing to create SBD for a premium so the supply could be increased if there is demand. Together with an interest rate this could actually solve the stable currency demand of the space.

interesting topic . i resteem it
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Now that was something i was trying to find out and looks like i got the answer in comment section thank for this post :)

I was wondering this to glad you got the answer. Also thanks for upvoting my post!

You can find a comprehensive description of the steem/SDB eco system in the steemit whitepaper which can be found for download on in the hamburger menue in the right corner of your steemit desktop.
However, I did not read and understand the entire information about it all.
In the right column of the steemd.com you can find the current number of existing SBD, which amounts 3,549,392.220 SBD at the moment.
I think this number can vary into both directions.
Good luck!
By the way: Thanks for questioning this.

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Good question
I also wait for answer
Thanks for sharing
Thanks also for your great support
Wish you a great and sunny day

Maybe from some sort of Steemit alchemy that it comes out of thin air.

I didn't even notice this. Thanks for pointing it out.

This is a very insight full question
I was trying to do a little research on the topic a while ago but I was left with even more questions at the end of the day
https://steemit.com/steemdollars/@tojukaka/steem-backed-dollars-sbd

Very good question. Would like to know the answer too.

I suppose it may come from transfer fee or maybe inflation on market, no idea really, would be interesting to hear a professional opinion.

Good question, would be curious to know that as well. Would assume it comes from the reward pool...

@knircky Thank you for obtaining this out. Followed.

grat post..i like this post..thanks for sharing...

I have always had the same question mate! Thanks for asking it and i'm so glad that we got an answer from @timcliff! Now i understand!

yea man. And i even get paid for asking a question and i can reward tim with an upvote!

This is what make Steemit a great place to be! The best place indeed! You ask questions you get paid as well as giving the answers!
Steem On!

I would prefer that it is made out of thin air instead of SP annual fees.

I honestly do not bother to understand, I write the best I can do. You are really a person who looks at things very deeply, I'm really grateful for knowing you. Thank you from all my heart.

Thanks @knircky for your thoughts friend! I hope the situation will improve! Have a nice weekend!

Hi @knircky. . . I have followed you and follow next post 👍

@knircky dear its always the mystery for network as blockchain etc. People never search such things, they only want to earn money and they even are ready to accept earning from money laundering, ponzy sites and other unfair means.
I am also not pretty sure exact about the source of money. This is good topic you are discussing and I will also take some research and if I get some exact figure, then I will also discussed with you and other steemans.

             I have upvoted and started following you to keep in touch with you in future.

Thanks

Actually in the case of steem its quite simple. There are block rewards and interest. That is what is causing some inflation