Quote from: smooth on August 09, 2016, 01:43:15 PM

I think VESTS are only created or destroyed by power up, power down, or rewards (that pay in SP/VESTS), unless I'm forgetting something.

If you sell SD on an exchange, literally nothing changes in terms of supply, just the owner of the existing token. That seems kind of obvious, no?

Yes changes in the price of STEEM (as reported by the oracles i.e. witnesses) between the time SD is created and when it is destroyed will influence the money supply (virtual supply; converted to real supply if and when the SD->STEEM conversion takes place). If I'm not mistaken that is covered in the white paper.

There is no special tagging of VESTS nor the STEEM/SP in the vesting fund.

I think the confusion was I thought commentators were stating that no liquid STEEM were in the vesting fund and I thought only VESTS would go into a "vesting fund". So I was confused as to where the liquid STEEM were accounted.

Now I think I've been told the VESTS are not in the vesting fund, so therefor liquid STEEM are accounted for in it, and the SP are accounted for in the VESTS. Is this correct? If not please provide some complete definitions. This is getting ridiculous. How can anyone know WTF is going on if the damn terms and design isn't documented. I try to guess based on different statements which makes it look as though it is my error, but it is a failure of clear communication.

Quote from: smooth on August 10, 2016, 12:17:18 AM

Quote from: iamnotback on August 09, 2016, 02:25:38 PM

Can you tell me where in the white paper? I don't remember reading about the ability to retire/destroy SBD.

I don't see a particular sentence but the concept is woven throughout the SBD section, for example in describing SBD as analogous to convertible notes, mentioning that conversion can only be done in one direction, etc.

What I understand now is that when we "Convert" our SBD, it retires them and converts to liquid STEEM. Whereas, when we choose "Buy or Sell", then we exchange the SBD for liquid STEEM and the SBD is not destroyed.

Quote from: smooth on August 10, 2016, 12:17:18 AM

Quote from: iamnotback on August 09, 2016, 02:25:38 PM

Then how do we know which VESTS to transfer to the party who owns the SBD when a SBD is retired? Or what does it mean to destroy a SBD?

First of all converting SBD does not deliver VESTS, it delivers liquid STEEM (which can then be converted to VESTS via a power up). Second of all, VESTS are fungible so there is no such thing as "which VESTS".

Again it was the commentators in my blog who caused me to believe the vesting fund stored the VESTS, which caused me to wonder why the liquid STEEM in the vesting fund were backed by VESTS. I was just following what I thought people were saying.

I can't read people's minds. There needs to be clear documentation. The white paper afair doesn't explain all about VESTS and vesting fund terms (unless it is buried and I've forgotten?)