The return of @burnpost

in burnpost •  3 years ago  (edited)

After a long period of SBD being undervalued or fairly valued, as well as undercollateralized, you may have noticed that SBD has now gone back above $1.

This presents stakeholders with the opportunity to vote a portion of rewards to use the overvalued SBD to buy back and burn STEEM, channeling the SBD overvaluation back into helping support (and ideally increasing) the STEEM price.

This is what @burnpost does, and I will once again begin a series of daily @burnpost post and comments which will use their rewards to buy back STEEM. By voting for these posts and comments you can express your opinion (which I share) that supporting the value of STEEM with overvalued SBD is one of the best uses for the reward pool.

Detailed rules for @burnpost are described in my previous blog posts on the topic and easily accessible as my blog history is pretty small.

Rewards from this post will be donated to @burnpost

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@smooth, why does @burnpost still delegate to @mackbot-jr, it hasn't been active for 43 days!

Nobody told me. I'll remove it now.

I just out of interest looked it up on steemd and saw that so thought I'd tell you so that it can be put to good use. 😁👍

Thank you

@smooth very important I need to get your attention to a very important matter:

What do you think? Plz comment there on the blog if you have any comment. Make sure you read the comments. This is very dystopian if correct.

I hope you can find a flaw in my reasoning. Do you know of any prior art?

i'm extremely sorry, i just don't known about the matter before, now i'm very clear about it. Thanks for your information.

The crowd isn't buying into the vote me so I can burn it camp.
Is there something we are missing?

Sell sbd, sbd goes back down to $1, steem goes up.
Burn steem, value of steem goes up again.
Smooth wouldn't gain anything of significance from not doing so.

Posted using Partiko Android

Hey, @smooth - do you still use I sent you a message a few weeks ago.

I use Discord, if you’re easier to reach there.

The SBD price would help Steem, got some nice profits from SBD this morning and was able to get a nice bag of Steem...

It may be better to encourage folks to trade on the internal exchange, their SBD for Steem and express the SBD price as traded on exchanges, with time and hodling, SBD would pull up the Steem price...

I still have a different opinion with regard to the use of SBD as I more see it as collateralized tool to take the selling pressure off of Steem, and still maintain returning the ratio back 3-5%. Having a collateral that's ratio is pegged to underlying asset supply would help maintain a far steady price of both asset if both are enjoying good trading volume.

Let see how this phase play out, but I think its more prudent to encourage folks to use the internal exchange to soak up the Steem supply and encourage hodling of the assets and with time we should see both assets especially Steem enjoy a far better valuation...

  ·  3 years ago (edited)

Not to disagree with anything you are saying but I would mention for added clarity that @burnpost uses the internal exchange exclusively.

This post has been included in the latest edition of SoS Daily News - a digest of all the latest news on the Steem blockchain.

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Great to hear this but actually i am still yet 100% to understand mucj abput this burnpost

Proof of donation

Transfer 54.680 SBD to burnpost txid 2f911db363a307b3386108fb603d17de0fee90bd

this is just test comment

this is just test comment from kevinms

I'm sorry, but I'm slightly confused. I thought the rewards from the burnposts were literally being burned/declined. If they're being used to buy back Steem for an account, is that just simply earning rewards as if it were a regular post for gain here? I'm sure I'm misunderstanding something obvious here, but figured I'd ask.

  ·  3 years ago (edited)

The STEEM/SP portion of rewards are just plainly burned (after being powered up for a period potentially to be delegated for anti-spam initiatives, but ultimately burned). The SBD portion is traded for STEEM (which adds selling pressure to SBD and buying pressure to STEEM) and then the resulting STEEM either burned or powered up and burned later, but again ultimately burned one way or another.

No one is earning rewards from this.

Thanks for connecting the dots. Is the decision to complete the final burn at your discretion, or is there a group that decides/has decided a timeline? The theory makes perfect sense, but if the Steem held under burnpost becomes a million USD (value-wise and powerful for anti-spam), it may be hard to just burn that away unless some commitments are on the chain to see that through.

  ·  3 years ago (edited)

It's somewhat at my discretion, but not really by intent. There are some rules about powering down and then burning 25% at a time as fast as possible, but when I wrote those I didn't realize that powering down requires adjusting the delegations first, and I wanted to coordinate that with the people running the anti-spam projects getting the delegations so it got complicated and somewhat delayed, but ultimately I'm still committed to never remove coins from the account except by burning (as well as it not being used to upvote, which would be a back door way to extract value from the account if allowed), which I feel satisfies the intent.

As far as commitments on the chain, they are there in the rules posts. Still, it's depending on trusting that i don't run off with it. If the amount got too large it would probably be a good idea to put it under a multisig with several respected community members having joint control. Eventually (far off) we might have actual on-chain smart contracts and be able to do it that way. For now, I think the current approach is okay.

Much appreciated. Got the full picture now. Thanks for taking the time to explain and address my inquiries in such detail.

Congratulations @smooth!
You raised your level and are now a Whale!

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Hey! Smooth, budy, I understood. I was wrong! My appologies! Let`s be friends! No need to proceed please... Thank you!