Steem Dollars (SBD) is a cryptocurrency within the Steem blockchain, a decentralised social media platform launched in 2016 by Steemit Inc., founded by Ned Scott and Dan Larimer. SBD was designed as a stable-value token pegged to the US dollar, aiming to provide predictable rewards for content creators and curators on the platform. The Steem ecosystem includes three tokens: STEEM (the core liquid token), Steem Power (SP) for influence and governance, and SBD for stability. SBD can be earned as a reward, used as a medium of exchange, or converted into STEEM. Despite its intent as a stablecoin, SBD has struggled to maintain its peg due to design flaws, including debt-to-ownership ratio limits, an imperfect conversion mechanism, and speculative trading. These factors have led to significant price volatility, deviating from its intended value of $1.00.
