The Steem blockchain has an interesting feature when SBD debt is too high. If the SBD debt exceeds 2% of Steem market cap, author rewards split starts deviating from 50% SP + 50% SBD, producing some Steem instead of SBD. At 3.5%, it is 50% SP + 25% SBD + 25% Steem. At SBD debt hitting and exceeding 5%, all SBD production stops, and author rewards are given out at 50% SP + 50% Steem.
So why not have the reverse? If traders are going to pump SBD ignorantly, we should fully exploit the opportunity. Let's say if SBD hits $2, SP rewards start diminishing, replaced by SBD. At $3.5, if it is 25% SP + 75% SBD. At $5, it can be 100% SBD rewards.
Of course, this is far more complicated than the SBD debt balancing feature, as it would need witnesses to signal SBD price, and a rewrite of the code to decrease SP production. If feasible, this could even extend to witness and curation rewards.
This will have several benefits -
- Authors will earn more, fully leveraging the opportunity of highly priced SBDs. It should also attract more people to join Steem.
- Steem production will reduce significantly, thus reducing the expected rate of inflation (supply increase). If the high SBD price is sustained, it's going to start putting buying pressure on Steem due to a lower-than-expected supply. In short, higher Steem price.
- On a related note, I see a lot of authors sell SBDs and buy Steem. This would also be accelerated two folds, again leading to a higher Steem price.
- A way to try and achieve a better SBD peg. Of course, this won't be very successful as even if doubled SBD production is too slow to retain the peg. It will happen eventually, but not fast enough to call SBD a stable coin.
It'll basically be a win-win situation for everyone. Well, except those ignorant crypto traders who were buying the SBD highs.