Burnpost update for SBD at 1 USD and accompanying rule improvements
Since SBD has now reached 1 USD in value, @burnpost will potentially be going into "burn mode" where the rewards will be burned rather than powered up. In addition, the account will begin to power down, with the power down payments treated as incoming STEEM (rewards, donation, etc.)
However, due to the account having engaged in delegations to anti-spam initiatives, it is impossible to immediately power down (power down is incompatible with delegation; the delegation must be removed first). In addition, there has been feedback from the community that immediately destroying the value of the account is not desirable, since it removes quickly support from anti-spam initiatives (in fact, in order to power down, the delegation would need to be completely removed immediately even while the power down is ongoing) and it also removes the ability to support the SBD peg should such support be needed in the future.
For for these reason (to continue support for the anti-spam delegations, to optimize the return to Steem stakeholders, and to maintain burning/@null as the ultimate sink of all value received by the account), we will modify the rules as follows:
- If SBD is trading at or below 1 USD, power down will be initiated at 25% of the SP (this requires reducing delegation first, which has a one-week delay). Upon completion of the 13-week power down cycle, if SBD is trading at or below 1 USD, it will be reset to 25% of the new SP. In effect, this applies a somewhat slower 1/52 per week power down rate instead of the maximum 1/13 per week.
- The remainder of the SP balance will delegated (or, if there are no worthy delegation targets identified, unused)
- Power down payments (STEEM) will treated as incoming STEEM payments (see #5 below)
- Incoming SBD will be converted to STEEM using the blockchain function if SBD is trading at or below 1 USD. SBD will be sold on the internal market (buying STEEM) if SBD is trading for more than 1 USD. In either case, the resulting STEEM will be treated as incoming STEEM (see #5 below)
- Incoming STEEM will be powered up if SBD is trading above 1 USD and burned (sent to @null) if SBD is trading at or below 1 USD.
The primary rule (social contract) governing the account remains this:
In no case will any coins from the account ever be sold, transferred, or powered down except to @null. Any value in the account can be considered as irrevocably allocated for burning either immediately or a some time in the future.
All rewards from this post will be sent to @burnpost as a donation which will then be traded from SBD to STEEM, powered up, and/or burned in accordance with the usual @burnpost rules. That includes SP which will be immediately sent in the form of STEEM from my own account