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Steem Dollars
About Steem Dollars
Steem Dollars (SBD) is a cryptocurrency within the Steem blockchain, a decentralised social media platform launched in 2016 by Steemit Inc., founded by Ned Scott and Dan Larimer. SBD was designed as a stable-value token pegged to the US dollar, aiming to provide predictable rewards for content creators and curators on the platform. The Steem ecosystem includes three tokens: STEEM (the core liquid token), Steem Power (SP) for influence and governance, and SBD for stability. SBD can be earned as a reward, used as a medium of exchange, or converted into STEEM. Despite its intent as a stablecoin, SBD has struggled to maintain its peg due to design flaws, including debt-to-ownership ratio limits, an imperfect conversion mechanism, and speculative trading. These factors have led to significant price volatility, deviating from its intended value of $1.00.
The Steem blockchain is a decentralised social media and content sharing platform that incentivises user participation through a reward system powered by its native cryptocurrencies. Launched in 2016 by Steemit Inc., the platform was designed to merge blockchain technology with content creation, enabling users to earn rewards for posting, curating, and engaging with content.
The Steem ecosystem includes two primary tokens and a staked asset representation:
- Steem (STEEM): The core liquid token used for trading and transactions.
- Steem Power (SP): Represents influence on the platform, which cannot be easily liquidated and grants more voting power for content curation and governance participation.
- Steem Dollars (SBD): A token designed to provide price stability, aiming to maintain a value pegged to the US dollar.
Steem uses a Delegated Proof of Stake (DPoS) consensus mechanism where elected witnesses validate transactions and secure the network. The platform rewards users from a fixed pool of newly minted tokens distributed based on content popularity and community engagement.
Steem Dollars (SBD) is a cryptocurrency token native to the Steem blockchain, introduced as a stable-value asset aimed at maintaining parity with the US dollar. It was designed to mitigate the volatility commonly associated with cryptocurrencies by providing a predictable store of value for platform users.
SBD was created through a mechanism similar to a convertible note, which allows holders to convert their tokens into the underlying asset (STEEM) at the current market rate. The supply of SBD is regulated by a price feed submitted by Steem witnesses, with additional measures in place to prevent price manipulation.