Steem Dollars

SBD Price

About Steem Dollars (SBD)

Steem Dollars is a stablecoin cryptocurrency token built on the Steem blockchain, designed to maintain a 1:1 peg to the US Dollar.

• The token serves as a liquid debt instrument within the Steem ecosystem, created primarily to reward content creators and curators for their contributions.
• It utilizes a decentralized conversion mechanism that allows users to redeem SBD for an equivalent value of the native STEEM token.
• The asset is backed by the Steem blockchain's internal equity and a median price feed maintained by elected network witnesses.

What Is Steem Dollars

Steem Dollars provides a stable unit of account for users of the Steem social media platform, shielding them from the high volatility typically associated with the broader cryptocurrency market. It is designed to function similarly to a "convertible note" in the startup world, representing a debt that can be converted into the network's underlying ownership asset (STEEM) at a future market price.

Value enters the SBD system through the Steem rewards pool, where approximately 50% of author payouts are typically distributed in Steem Dollars. This distribution provides immediate liquidity to contributors while maintaining the network's overall stability. Users can trade SBD for STEEM, transfer it to other accounts for commerce, or hold it as a stable store of value. Unlike the native STEEM token, SBD is intended to be spent or used in exchange rather than being "powered up" to gain network influence. As the ecosystem grows and more social applications are built on its infrastructure, SBD scales by providing a reliable medium for cross-application commerce and micro-earning without requiring users to navigate complex exchange slippage.

What Makes Steem Dollars Unique

• Algorithmic Peg Mechanism: SBD maintains its value through a unique conversion process where the blockchain samples the median price of STEEM over a 3.5-day window to ensure fair value during redemptions.
• Social Reward Integration: It is one of the few stablecoins natively integrated into a SocialFi platform, automatically generated as a reward for subjective contributions like blogging and commenting.
• Debt-to-Equity Safeguards: The protocol includes a hard-coded 10% debt-to-ownership ratio cap; if SBD debt exceeds 10% of the STEEM market cap, the system automatically adjusts conversion rates to protect the network's solvency.
• Fee-Free Transactions: Transactions involving SBD are essentially free for users, as the underlying Steem blockchain utilizes a bandwidth-based resource model instead of traditional transaction fees.

What Can You Use Steem Dollars for?

Steem Dollars is pegged to the US Dollar.

1. Value retention: The asset allows users to hold a digital, on-chain representation of the US Dollar, reducing exposure to the volatility inherent in the native STEEM token and the wider crypto market.
2. Yield generation: The source does not specify native yield options for SBD, though users may utilize the token for liquidity provisioning on external decentralized exchanges.
3. Cross-border settlement / value transfer: SBD enables international remittances and peer-to-peer value transfer with 3-second block times and no transaction fees, facilitating frictionless global commerce.
4. Collateralization: The token can be used as backing for social commerce transactions through an integrated escrow system, where trust is established via community-vetted third-party agents.

How Does Steem Dollars Work?

SBD operates on the Steem blockchain's Delegated Proof of Stake consensus. Its peg is maintained by "witnesses" — 21 elected nodes that provide regular price feeds of the STEEM/USD pair. The blockchain calculates a median of these feeds to determine the conversion rate. Users can initiate a conversion of SBD to STEEM at any time. To prevent market manipulation and timing attacks, the conversion is delayed for 3.5 days, ensuring the price used is a fair reflection of the market average.

The network utilizes an intelligent bandwidth allocation model instead of protocol service fees, allowing users to perform transactions for free as long as they maintain a minimum account balance or have delegated resources.

Team Info and Investors

The Steem blockchain was founded in 2016 by Ned Scott and Dan Larimer, the latter of whom also developed BitShares and EOS. The project was initially supported and developed by Steemit, Inc., a private entity that launched the first social application on the network. While the source does not detail current private investors, the network's governance is entirely decentralized, managed by the community through the election of witnesses.

Where can you buy Steem Dollars?

SBD tokens can be traded on centralized crypto exchanges. The most popular exchange to buy and trade Steem Dollars is HTX, where the most active trading pair SBD/USDT has a trading volume of $808.29 in the last 24 hours.

What is the daily trading volume of Steem Dollars (SBD)?

The trading volume of Steem Dollars (SBD) is $808.29 in the last 24 hours, representing a -99.90% decrease from one day ago and signalling a recent fall in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Steem Dollars (SBD)?

Steem Dollars (SBD) reached an all-time high of $19.02 and an all-time low of $0.2339. It’s now trading -97.80% below that peak and 81.20% above its lowest price.

What is the market cap of Steem Dollars (SBD)?

Market capitalization of Steem Dollars (SBD) is $4,154,990 and is ranked #1674 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of SBD tokens (9.8 Million tokens are tradable on the market today).

What is the fully diluted valuation of Steem Dollars (SBD)?

The fully diluted valuation (FDV) of Steem Dollars (SBD) is $4,154,990. This is a statistical representation of the maximum market cap, assuming total number of 9.8 Million ETH tokens are in circulation today.

How does the price performance of Steem Dollars compare against its peers?

With a price increase of 6.80% in the last 7 days, Steem Dollars (SBD) is outperforming the global cryptocurrency market which is down -5.30%, while outperforming when compared to similar SocialFi cryptocurrencies which are down -1.80%.