Steem Dollars
Crypto Overview
Understanding the Intended Utility
Steem Dollars (SBD) is a stablecoin created on the Steem blockchain, designed to maintain a soft peg to the US Dollar. It serves as a medium of exchange within the Steem ecosystem, particularly for content creators and curators on the Steem social media platform. The token was created to provide a stable payment option for content creators who earn rewards through the platform.
Business Model & Actual Utility
SBD operates as part of the Steem ecosystem's reward mechanism. Content creators can earn SBD through upvotes on their content, and the tokens can be traded on various exchanges or converted to STEEM tokens. The stability mechanism relies on market forces and the Steem blockchain's internal market maker.
Real World Adoption
SBD has seen limited adoption outside the Steem ecosystem, with its primary use case remaining within the platform for content creator payments and trading. The token's usage has declined significantly since its peak, correlating with decreased activity on the Steem platform following various community splits and the creation of Hive as a fork.
Platform Development
The development activity on the Steem platform has slowed considerably since the controversial Tron Foundation acquisition and subsequent community fork to Hive. While the basic functionality remains, major new developments are limited.
Token Distribution & Founder Involvement
The token's distribution is primarily market-driven, with new SBD being created through the platform's reward pool. There are no concerning patterns of founder enrichment, as the token generation is algorithmic and based on platform activity.
Revenue Model Analysis
The token's stability mechanism does not rely on interest-bearing instruments or riba. Instead, it uses market forces and algorithmic adjustments to maintain its peg. The platform's revenue model is based on content creation and curation, which aligns with halal principles.
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.