I floated this idea several years ago and it got some good traction, but just not quite enough to really get this idea off the ground and turn it into an official proposal funded by the DAO.
However, that may be all about to change.
Currently there has been some discussion among community members and top witnesses about the idea of using SBDs going into the SteemDAO to buy and burn steem. Many are in agreement that this is a worthwhile endeavor to take.
The reasons for this are several:
The first reason being that SBDs have been trading for well north of a dollar for years now. While that is great for content creators on the rare occasion we are actually earning SBDs, it makes the dollar pegged stable coin well, not really a dollar pegged stable coin. There isn't much of a point in having a dollar stable coin unless it can reliably trade around a dollar. This proposal will likely help push SBDs back down towards a dollar over time.
While pushing SBDs down may sound like a negative on first glance, the idea is that the excess value currently in SBDs gets transferred over to STEEM. The process of selling SBDs to buy and burn STEEM should likely put upward pressure on the price of STEEM over time. Also the proposal would be stopped if/when SBDs started trading at $1 again.
The massive amount of SBDs currently sitting in the DAO represent a liability to the STEEM ecosystem should they be hacked or fallen into the wrong hands somehow. This proposal would effectively reduce that liability over time while transferring that excess value back to STEEM where it benefits all users of this platform.
It is really quite simple and completely transparent which is great for all of us.
The idea is that a proposal would be created for 2,400 SBDs per day to flow into a designated account called steemdao.burn, from there SBDs could be shipped to steemdao.maker to be sold on the internal market. The reason for separating into two accounts here would be so that we can customize and test the amount of the 2,400 SBDs we want sent to steemdao.maker each day. For example, we could send 100 SBDs to steemdao.maker per day (initially for testing) and the remaining SBDs in the steemdao.burn account would be shipped back to the DAO.
Once the steemdao.maker account sells the SBDs on the internal market and receives STEEM, this STEEM would be sent to the @null account where it would be effectively burned and removed from the circulating supply of STEEM. This entire process would be automated with no interaction between people unless there is a problem and intervention is needed. The transactions would be onchain and visible to all which is great for transparency purposes. The development of the steemdao.burn and steemdao.maker accounts and accompanying bots would be created by the @roadofrich Blokfield team. They have a long history with STEEM and a great track record of integrity and doing great work.
*The only concern here is with the liquidity on the internal market, however the Blokfield team has created and been running a market making bot on the internal market for some time now and they have assured that liquidity definitely will not be a problem.
Overall this seems like a worthwhile proposal that will benefit everyone in the STEEM and Steemit ecosystem. Currently there are many large steem holders and witnesses that are onboard with this idea and think the benefits could greatly outweigh the risks.
Please let me know your comments, questions, concerns, and ideas in the comment section below. This proposal has the potential to raise the price of STEEM, restore SBDs closer to their intended peg value, and remove a large liability from the STEEM ecosystem.
The plan is to release a official proposal in the coming weeks once we get more input from the community and have all the details ironed out.
Happy STEEMing!
@rme @steemcurator01 @steemcurator02 @steemchiller @justyy @remlaps