Steem Dollars are created by a mechanism similar to convertible notes, which are often used to fund startups. In the startup world, convertible notes are short-term debt instruments that can be converted to ownership at a rate determined in the future, typically during a future funding round. A blockchain based token can be viewed as ownership in the community whereas a convertible note can be viewed as a debt denominated in any other commodity or currency. The terms of the convertible note allow the holder to convert to the backing token with a minimum notice at the fair market price of the token. Creating token-convertible-dollars enables blockchains to grow their network effect while maximizing the return for token holders.
Steem Dollars are referred to with the symbol SBD, an acronym for Steem Blockchain Dollars. Creating SBD requires a combination of a reliable price feed, and rules to prevent abuse. Providing a reliable price feed involves three factors: minimizing the impact of an incorrect feed, maximizing the cost of producing an incorrect feed, and minimizing the importance of timing.
Steem dollar price usd candlestick chart.
[currencygraph currency1=sbd currency2="usd"]Steem dollar price btc candlestick chart.
[currencygraph currency1=sbd currency2="btc"]Here is the current Steem dollar price. You can check anytime how much exactly 1 SBD is worth in many currencies: USD, EUR, BTC, GBP, JPY, etc. Refresh the page to check the price again.