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WHY ARE STEEM REWARDS PAYING OUT LIQUID STEEM?

196 views · Published 23 March 2018 · 7:51 · Indexed 26 September 2026

Channel: ChampagneCrypto · 2018 · News & Politics

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Earlier this week we noticed STEEM author rewards are now paying out Liquid STEEM in addition to STEEM Power and SBDs. In this video we do our best to explain why.

We've learn that SBDs are worth at least $1 because they're backed by a certain ratio of STEEM and since the price of STEEM has decreased it now requires more STEEM to back up existing SBDs. This is why the STEEM blockchain has now stopped producing SBDs and instead produces more STEEM in order to back up those SBDs. Furthermore, we've learned this is written into STEEM's code and occurs automatically.

One could believe that it's a good thing to have this written into the STEEM code while others may argue this creates inflation and reduces the value of STEEM by increasing the circulating supply.

Why do you think about Liquid STEEM payouts in addition to STEEM Power and SBDs? How do you think this feature written in the code could affect the value of STEEM in the long term? Please share your thoughts below in the comment section. 

Related links:

Liquid Steem Rewards are Here - Math Time!
https://steemit.com/steemit/@geekorner/liquid-steem-rewards-are-here-math-time

STEEM Rewards News Flash
https://steemit.com/steem/@eonwarped/steem-rewards-news-flash

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