Some of you may have noticed that you're getting less Steem Dollars and more Steem from your post payouts recently.
Heres an example payout for my Steemit.com update post yesterday:
Total post payout value: $278.01
Author reward value: $216.33
Curator reward value: $61.66
Curators got paid out in Steem Power , and my author rewards arrived as:
31.137 Steem Dollars
251.919 Steem (!)
385.974 Steem Power
A much larger proportion of your reward is being paid out in liquid Steem than in Steem Dollars right now.
This split is decided by a variable called sbd_print_rate , and as of right now it's set to 29.00%.
This means if you select to "Default 50% / 50%" payout option, the liquid 50% of your author reward will be paid out in 29% Steem Dollars and the remaining 71% in Steem.
You can easily check this variable live via the steemviz statistics screen :
Screenshot from steemviz about an hour ago
I also have a gif I made 2 weeks ago, that shows both how to access the statistics screen and that the rate was 79.33% back then.
So, why is this happening ?
@dantheman has a post that explains the mechanic best - "Steem Dollar Stability Enhancements , please read it if you want to know the full details.
The most relevant quote from that post for the current situation:
As the Steem Dollar supply grows from 3% to 5% the percent of author rewards paid in Steem Dollars will go from 50% to 0% and the percent paid as liquid STEEM will go from 0% to 50%. In this way authors are still awarded with liquid assets, but the network gradually slows down the printing presses on Steem Dollars.
If my math is correct (probably not) then the Steem Dollar supply current represents approximately 4% of the market cap.
At current levels, this measure wouldn’t take effect unless the market cap fell to $70M and would completely stop issuing new Steem Dollars when the market cap fell to about $40M.
SteemCap.com and Coinmarketcap say the current total market cap of steem is **$46**,137,166 .
Screenshot taken by me today of coinmarketcap
What happens next ?
The future is anyone's guess. I still have faith that the steem price will recover, and I powered up all my liquid steem from that large recent payout to show that.
I don't want to scare anyone, but this is the next stage of the protocol if the ratio outstanding steem dollar supply (debt) to steem market cap continues to rise. These measures are still a long way from being activated, if ever - but its good to understand the possibilities.
Again referring to @danthemans post :
Any time the Steem Dollar supply reaches 20% of the market cap, 1% of everyone’s Steem Dollars will be converted to Steem Power at the price feed. This action can be viewed as a partial “bail-in” where everyone is treated equally. This will immediately reduce the Steem Dollar percent of total market cap while preventing immediate dumping of the STEEM which could accelerate the collapse in a positive feedback loop.
Steem Dollar holders that wish to avoid this forced redemption should convert to STEEM and sell on the market. If done via the 7 day conversion process, then the supply should decrease naturally and all Steem Dollar holders can be spared the “bail in”.
What can we do to help ?
There are a few things users can do to help relieve the pressure on the market and SBD debt ratio.
- Make sure you use the 7 day conversion option to redeem your SBD as this actually removes the SBD from circulation
- Take advantage of the 100% SP payout option
- Power up your liquid steem rewards for the long term, I am.
- Don't market Steem as a "get rich quick" scheme.
- Focus on creating good content, networking and building our community
We need to remember this is still the early days of a beta project, and crazy price fluctuations are normal in cryptocurrencies.
100% SP Posthelp wanted ~ steemviz ~ steemcap ~ ifttt recipes ~ steemtrail curator ~ steem charts
@steemleak ~ @krystle ~ @fabledwisdom
Intro post
