BBD Coin - Why it doesn't behave like a traditional stable coin

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BBD's are a bit experimental and complex. They don't work like traditional stable coins that peg to fiat currencies. So how is it that they are stable? Well bbd's work this way. They are backed and stable through their redemption function. As to say a bbd can only be issued if there is enough btcmyk in our possession to issue one.

So for example let's say it takes 500 btcmyk at market value to equal the current rate of a bbd token. You can redeem your bbd's for that many btcmyk. Now whereas we are priced in us dollar as to how we know the value of the coin. The buying power is estimated by the network value itself.

So how would we know the value of our network? Well we use the same structure as how they value most social media sites through accounts and the value of the account over its lifetime. So in theory if you have a growing social media site . traffic people joining then each account represents a certain dollar value.

So BBD's are tied to the network growth in their usd value. As to say if its value x and you can google info on how social media site accounts gain and have value. That will give you an idea what a large social network can be worth or a growing one. So if that network were to increase for example by 30%. .as to say it grew by 30%. Then that would suggest that network is potentially that more valuable. So that then is reflected in the BBD price if that makes sense. it means then we can issue bbd's at a higher rate and not the same rate. So its not so much it goes up by some market condition of buyers and sellers. BBD's can't be manipulated in price the margins are closely tied together so its almost impossible to trade it in a traditional way.

So rough example BBD's started at $1 but the network itself value wise grew by 40% so then that shows up in the bbd price. Once the value goes in. It doesn't go out anymore than if you put the value in a piccasso or a home. So bbd's like fiat currencies are artificially controlled markets but are highly liquid markets meaning insolvency is possible but not likely. It's not ever likely because bbd's are backed by btcmyk and btcmyk will always be valuable as long as people continue to join our networks which they probably will because its a ubi freemium service model but the value increases with them joining because the traffic and attention is worth value and revenue etc.,

So what happens to the value in the BBD? Does it all just stay in there once the value is established and it's able to be swapped out for btcmyk native token that's deflationary and will continue to become more rare. Well right now about 80% on average stays in the bbd coin to create maximum liquidity, however that rate can go all the way down to 10%. BBDs base trading pair is traded against others like hive in this example. So we take the hive and we put it back in btcmyk at a rate of about 20%. Again those numbers can chagne for any reason as the bbd token is not backed by hive it's backed by the network growth. Which means if you don't believe a large social network can be valued at zero then its unlikely you'll believe the btcmyk native token can be.

So in conclusion the reason it can go so high is because the network itself can reach millions of accounts and go high. As long as it continues to do that the bbd price will go up. Interesting enough what would cause it to behave like a traditional stable coin pegged to the usd. Well the network would have to just stagnate. As to say if the btcmyk network doesn't grow then the price just always remains stable at that dollar value. So bbd's can't go down in value once the money goes in. As to say if its at $1.40 today and the network doesn't grow any further. it will remain stable and highly liquid but it won't move beyond or below $1.40 so in that case it will function exactly like traditional stable coins. We should also keep in mind fiat currencies do move but in relation to other fiat currencies so its not so much they are truly stable in that sense. It's more they are backed by the faith and credit of the issuing municipality. In our case we redeem the bbd's for another tradable market at anytime thats been established. If bbd's themselves become insolvent and it's similar to how we could redeem usd for gold decades ago. That's how the bbd token is backed and works. So yes it can behave just like your standard stable coin which they go up alot too in some cases. I've seen tether go up to like $1.20 lol. We've seen other stable coins like sbd go all the way to $20... and hbd's have went particularyl high as well. They never go below the purchase price or issuance price unless the peg goes from a huge market spike or something like that. In which case you need to check our rates of inflation or network growth to know the true value . it would be like buying a sbd at $20. and it goes back to around $1.. Now the good news is we don't go down from our inflation rate which we telll you what it is. The true price of a bbd is about $1.40 now. so it will never be sold below $1.40 ever again. We will never sell below that price. It's possible that someone else could in the case of an unlikely insolvency which i'd still imagine would be corrected.

So bbd's are a bit complex in the monetary policy. So you certainly need to do some research on them before a person jumps in to them. They don't go down ever from their rate of inflation so you can check the site or check our social media to find out what the inflation rate is and it never goes below that again they will never go below $1.40 again we will always issue them at that price for now on although they started at $1. So the people buying at $1 never have to worry about that again. Even if bbd's were to become insolvent we'd then issue the dollar market value to bbd recipients in the form of btcmyk. So btcmyk is always set aside to issue bbd's in case that happens. So we ask people don't jump in unless they understand bbd's. We think its one of the safest and most opportunistic projects in crypto but we still prefer people take the time and be educated about our projects so they can obtain its full benefit.

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