There is a major unused resource that the STEEM community could potentially put to very good use...

For those that do not know, a portion of the newly created inflation every day is distributed out to the DAO.

The DAO stands for Decentralized Autonomous Organization.

IE, it's automated and not controlled by a single entity.

This inflation to the DAO is in the form of SBDs (steem backed dollars), and as you have likely noticed, SBDs haven't been paying out on the steemit.com platform for some time now (6 months or more).

The original idea was that the DAO could be used to fund development/projects built on steem, but in reality when it was in use we have seen the vast majority of projects take in way more value than they ever deliver to the ecosystem. In fact, I think they all have. Ideally, only something that gives more value to everyone in the ecosystem than it takes in is funded.

The interesting thing about SBDs is that they have continuously been trading for more than a dollar on external exchanges for several years now...

The astute observer might see that we have "overpriced" SBDs continuously going to a fund that historically hasn't been capable of funding beneficial development and think to one's self, perhaps there is something else that can be done...?!

Something else can be done for sure!!!

My proposal...

I think we should take the newly created SBDs each day and funnel them instead to a service that buys and burns STEEM.

IE, the service would collect the SBDs on a daily basis, use the Internal Market to buy STEEM, and then ship that STEEM to the null address.

This would eventually start to pull more and more STEEM off the external exchanges and start to raise the price, plus it would help slow down the supply increase, or possibly even reduce it, depending on the amount of STEEM that could be bought and burned on a daily basis...

This is interesting to me because it would benefit the entire community equally. Everyone who participates in STEEM would benefit from this proposal which is unique in itself in terms of proposals tending to only benefit portions of the community.

Now the hard part...

There are some details that would need to be worked out.

Who would run the account that is suddenly credited with all the new SBDs meant for the DAO each day, and/or who would create the automated service that would execute this, and finally, what checks and balances would be put in place to make sure this service is not abused by those running it?

If we can figure out answers to the above questions, I think this would be a great use of the DAO funds.

It would likely raise the price of STEEM over time which is positive for everyone involved in the ecosystem and it would be done using a resource we already have, just aren't taking advantage of currently.

Lets make it happen!

What do you say?

Image Source: https://www.investinblockchain.com/steem-steemit/