Steem-Backed Dollars (SBD)

Steem-Backed Dollars are denoted by the symbol SBD. The role of SBD is to provide to the Steem blockchain a financial instrument that has a stable value of at least $1 USD. It is important to note that historically, the SBD has failed to remain stable on the upside but has been successful are keeping a price floor of around $1.

Steem-Backed Dollars For Author Rewards

When an author publishes an article, he/she can choose to:

  • Be paid 100% in Steem Power
  • Be paid 50% in Steem Power and 50% in Steem-Backed Dollars
  • To Decline payout

It is important to note that posts or applications that have a beneficiary reward set will be paid in whatever above means the authors decide to be paid.

Steem-Backed Dollars As Debt

If STEEM is viewed as ownership in the whole supply of tokens, then a token-convertible dollar can be viewed as debt since it is a promised to return $1 worth of STEEM at a later debt. A rapid change in the value of STEEM can dramatically change the debt-to-ownership ratio. The blockchain prevents the debt-to-ownership ratio from getting too high by stopping to the printing of Steem-Backed Dollars when the debt level exceeds 10%.

Learn more: Steem Whitepaper

Last Updated: 10/9/2018, 11:42:32 AM