I am trying to look up how SBD are issued
My understanding is that:
- sbd are issued at 50% reward for authors so long as the outstanding sbd are less than 2.5% of the market cap of steem (sbd are considered to be $1 even if exchange price is $10)
- between 2-5% of market cap the issuance percentage goes down gradually. Ie at 5% no more sbd are issued as rewards
- if there are more than 5% of sbd relative to market cap the the blockchain starts to pay less than $1 until 10% where it ceases to pay at all.
- when sbd are created the corresponding steem for rewards will simply be burned and the sbd printed
- when sbd are redeemed they are burned and steem printed
I wrote this all from rembering. But really im sure some of this is wrong and looking for some reference to look this up.
Any links are appreciated!
Update:
here some links from Dan (this one is old and does not answer my questions):
https://steemit.com/steem/@dantheman/steem-dollar-economics
This describes how sbd is limited and also safe.
https://steemit.com/steemit/@dantheman/steem-dollars-have-limits
