The Project's Vision
Many bid-bots have been created already, but most of them have only one goal: to make money. Fortunately enough there are some bid-bots already created that have a growth
project for the Steem Blockchain, @jerrybanfield, @smartsteem and @appreciator are example of this types of bots and benefit the community in an indirect way by funding
new projects that are being developed to improve the Steem ecosystem. However there is one type of bid-bot that hadn't being created until today (26/03/2018), a Burning Bid-Bot.
What does the @lrd Burning Bid-Bot plans on achieving?
This bid-bot will enable Steem users to increase the Steem price directly while promoting their posts for extra visibility and even having the chance to not only get their
money back but to earn profits too!.
How does it work?
How does a bid-bot work?
Bid-bots have bidding rounds of 2.4 hours after which they divide a 100% Voting Strength upvote at 100% Voting Power among the bidders.
Bob sends 0.1 SBD and Alice sends 0.9 SBD to the Bid-bot, after the bidding round ends the bot automatically detects the vote percentage each bidder shall receive, in this
case Bob would receive 10% of the bid-bot vote and Alice would receive a 90% vote.
Now that you understand how a bid-bot works you know need to know how the bids sent are distributed:
50% of profits goes to delegators
This is to incentivize delegators to support the Burning Bid-Bot, if you don't care about helping Steem in the long-term then a bid-bot that gives out 90% of the profits will
suit you best.
40% of profits are burnt (Sent to @null)
This is how the price of Steem and Steem Backed Dollars increases.
10% of profits are used for Bot hosting, mainteinance, weekly informative updates...
This percentage will be changed accordingly to the bid-bot growth, the more Steem Power it has the least percentage it will be taken and the more it will be burnt.
How is the Steem and Steem Backed Dollar price increased? (Burning process explained)
The price of a currency (in this case STEEM and SBD) is determined by the market cap and the supply, in order to price to increase marketcap has to increase or supply has to
decrease, due to the fact we can't nor shouldn't control what happens in the markets we can't control the market cap, this means the only way in which we can directly increase
the price is by reducing the supply, this is done by a simple process called burning, whenever a coin is burned the Steem price increases, 40% of all profits from the bid-bot
bidding rounds are sent directly to @null meaning that by simply using this bid-bot you are increasing the Steem price.
Choosing what currency to bid with, STEEM or SBDs
The simple question you should ask yourself is: which one do I want the price to increase?
Remember, you can use the internal market to exchange SBDs to STEEM, using this market you have the freedom to decide which one of the two currencies you wanna boost.
How much does burning 1 STEEM increases the price?
It is true you won't be changing the price of STEEM in one day, that is why this is a long-term project, but it quickly adds up if more and more people start using it.
Let's do some simple maths:
For this example we will take the data from yesterday (25/03/2018),
Market Cap: 524,064,006$
Circulating supply: 254,602,696 STEEM
Price per coin: 2.0583600026$
After burning 1 STEEM each coin would be worth 2.05836001068, meaning you increased each coin's price by 0.00000001042$ it might not seem like much but think about it,
just by sending 2,5 STEEM to promote your post you increased the value each STEEM coin has, if you add things up it will leave some more beautiful numbers:
Supposing 10 bidding rounds in one day of 100 STEEM in bids per round it will mean burning 400 STEEM a day, an increase in the price of 0.00000416901$ which when thinking about
the STEEM supply can mean a lot.
Reasons to delegate to @lrd Burning Bid-Bot
1- You earn 50% of the profits, it is less than what other bid-bots offer but here you are contributing to the entire community.
2- You indirectly are burning STEEM and SBD which increases the price of everyone's holdings including yours.
3- Giving back to the Steem Community.
Reasons to use @lrd Burning Bid-Bot to promote your posts
1- It does not cost you more money to use this bid-bot than others.
2- You are burning STEEM and SBD.
3- You are directly helping the entire community.
Delegate now to the Burning Bid-Bot
10 SP 50 SP 100 SP 250 SP 500 SP 1000 SP 5000 SP 10000 SP
Rules of using @lrd Burning Bid-Bot
1- Min bid is 0.01 SBD or STEEM (make sure to check the minimum bid in the @lrd's description due to the fact it depends on the amount of Steem Power the account has).
2- Bidding rounds every 2.4 hours (100% VS, 100% VP).
3- Posts under 30 minutes and over 3.5 days won't be accepted.
4- Do not promote spam content with it.
Current @lrd Burning Bid-Bot stats
Currently the account holds a voting weight of 1,046 Steem Power.
Logo Contest (10 SBD prize)
The idea is to create a logo for the @lrd Burning Bid-Bot, this are the rules:
1- Use the #burningcontest tag.
2- In the post include: "This is an entry for the #burningcontest"
3- By entering the contest you allow all the images to be used by @lrd.
4- Add the tag #burn if you want the prize to be burnt or add the tag #greed in case you want to keep it (in case you win).
There will be a prize pool of 10 SBD, the winner will have to specify whether he/she wants to burn it or keep it (rule 4), payout will be made after the winner is announced.
Feel free to leave in the comments your thoughts about the project and/or possible tweaks to improve it.
Happy burning time!!