By now you are likely familiar with the @sbdpotato project, if not please check out the intro post. In summary, the @sbdpotato project name was inspired by this image where a potato brings balance to a stack of coins.
The essence of the project is to create a sustainable cycle of purchasing SBD on the internal market using post rewards and then placing the SBD into the conversion process, converting it back to STEEM over a 3.5 day period and then repeating the process to continually remove SBD from the market and lower the debt ratio to below 10% so the rest of the community can start helping to convert without fear of loss due to the haircut rule being in effect.
Currently, there has been positive support for the project and there are regular supporters of the daily post, yielding over $90 per day towards the conversion cycle. There is circa 1,500 SBD in conversion and 7,200 SBD converted since inception.
While these figures are encouraging; they are not enough to make a dent in the debt ratio; at the time of writing BTC has dropped below 7000 USD and SBD is sitting at 0.59 USD while the STEEM price has dropped to 0.12 USD according to https://coinmarketcap.com. The current @sbdpotato funding model is going to take some time to accumulate enough funds to make a meaningful impact which is why I am proposing this proposal gets funded.
The Proposal
Daily rate: 250 SBD per day
Period: 100 days
Total: 25 000 SBD
Recipient: @sbdpotato
Purpose of Funds: To be used to support the SBD peg via a cyclical market-buy-conversion process as detailed above and in the @sbdpotato posts.
Funds Return Mandate: Once the funds are no longer required to stabilise the SBD peg to 1:1 to the USD, the funds will be returned in full to @steem.dao which makes it a "No-brainer" vote as it will, in the end, be like a return proposal.
The DAO will also benefit from the spin-off effects of a stronger SBD which means less SBD is required to fund proposals with USD costs that need to be settled.
Further Compartmentalised Funding
Should the this proposal funding be insufficient to correct the peg in a reasonable timeframe, it is recommended that additional trusted parties, witnesses, whales, project owners etc also submit proposals for a similar value and run the open source code on a personal Heroku instance.
For example, 250K SBD in custody of a single person is significant counterparty risk; however, 25K SBD across 10 different custodians achieves the same economic effect with decentralised risk.
(Credit to @smooth for the discussion that led to the formulation of the above.)
Conclusion
It is my sincere hope this proposal will be funded and thereafter, others might make similar proposals to catalyse the repair of the SBD peg through the power of unifed community.
Sincerely,
@thecryptodrive [Witness]
Proposal Voting platforms:
https://steemitwallet.com/proposals
https://steempeak.com/proposals
https://steemproposals.com/proposal/66