Steem Dollars
Crypto Overview
Overview and Intended Utility
Steem Dollars (SBD) is a stablecoin created on the Steem blockchain, designed to maintain a relatively stable value of approximately one US dollar. It was created as part of the Steem ecosystem to facilitate content creation and social media engagement rewards.
Business Model Analysis
The token operates within the Steem ecosystem as a rewards mechanism for content creators. When users create content that receives upvotes, they can earn SBD tokens. The stability mechanism relies on market forces and the Steem blockchain's internal systems rather than traditional interest-bearing collateralization.
Actual Utility Assessment
Current data shows significantly reduced usage of SBD compared to its peak. The token has largely failed to maintain its dollar peg, with substantial price volatility. Trading volumes have decreased dramatically since 2020, indicating limited real-world adoption. The Steem blockchain fork to Hive in 2020 has further impacted SBD's utility and adoption.
Token Distribution and Governance
The token distribution is tied to the Steem blockchain's reward pool. There are no direct founder allocations for SBD, as tokens are created through the platform's reward mechanism. However, the centralization of the Steem blockchain following the Tron acquisition has raised concerns about governance.
Technology and Revenue Model
The stability mechanism involves market participants and blockchain algorithms rather than interest-bearing instruments. However, the system includes 'savings' accounts that offer returns, which may raise concerns from an Islamic finance perspective.
Crypto Impact
To assign a comfort level investing in Steem Dollars from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Steem Dollars.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.