Following a drop in the daily SBD payouts, I thought it would be interesting to take a closer look at the SBD production and conversion dynamics since it started.
Our first two charts highlight the SBD production and conversions since the first SBD payout that was made on the 4th of July, We can see that the SBD issued for authors reward clearly follows the Steem price moving pattern, the payout was higher when Steem price reached its current ATH and then started dropping as the price started to correct to the downside.
The charts also show that conversion have been active since the early days, conversion is a good way to sell SBD for Steem without impacting the SBD market much, and it’s especially effective for large orders as it allows the seller to get $1 worth of Steem/SBD (based on 7 days median price), which is not possible now in the SBD/BTC market. Of course there is a risk of loss in the conversion if the price drops much in the last day or two before the payout is due, but it’s still the preferred method for many to sell SBD as we can see. We also can see that last week had record conversion orders made with almost 200k SBD conversion planned in the next 7 days as we will see in the last chart.
We can also see that the total issued SBD was about 3 322 509.077 of which 1 107 248.859 was converted to Steem which leaves us with a total of liquid SBD of 2 215 260.218 as of this report's date
*(conversions are accounted for upon conversion request and not upon filling since the request cannot be reverted)
Daily SBD production chart:
| SBD Type | Min | Max | Average |
|---|---|---|---|
| Author reward | 5 229.798 | 335 588.866 | 42 876.469 |
| Interest | 0.520 | 3 152.950 | 273.000 |
| Conversion | -119 398.213 | -630.889 | -14 379.855 |
| Liquid | -104 540.081 | 326 812.256 | 28 769.613 |
Daily SBD production chart (cumulated):
| SBD Type | Total |
|---|---|
| Author reward | 3 301 488.091 |
| Interest | 21 020.986 |
| Conversion | -1 107 248.859 |
| Liquid | 2 215 260.218 |
In our next chart we take a closer look at the SBD interests that were paid, as the previous charts do not show it clearly, we can see that many Steemians are collecting SBD interest which is indeed is one of the reasons that encourage holding SBD for the long term.
Daily SBD interest payout chart:
| Interest | |
|---|---|
| Min | 0.520 |
| Max | 3 152.950 |
| Average | 273.000 |
The following chart shows the evolution of the SBD/Steem ratio.
Daily SBD/Steem ratio:
| SBD/Steem | |
|---|---|
| Min | 0.280 |
| Max | 3.743 |
| Average | 1.602 |
Our last chart highlights the conversions set to be filled in the next 7 days, we can see that a record 197 948.995 SBD were requested to be converted, which is about 8% of the current liquid SBD (about 2.4 millions not accounting the unfilled conversion). It will definitely be interesting to see what impact such a huge conversion will have on the SBD and Steem markets, and also on the SP of the accounts.
Daily SBD next week's "to be filled" conversions:
| Next week conversions | |
|---|---|
| Min | 8 040.210 |
| Max | 119 398.213 |
| Average | 28 278.428 |
| Total | 197 948.995 |
In conclusion, we can see that SBD is a key component of the Steem ecosystem, as it impacts payouts, price and SP. It also has some unique features as its market cap that can increase or decrease depending on the emission and conversion. SBD definitely offers opportunities to make profit so use your SBD wisely.
This report covers SBD operations made between:
July 4, 2016, 12:00 am UTC and September 18, 2016, 11:59 pm UTC