As it’s said in the title, it should be 1 DIGG = 1 BTC (approx.) right? How does this rebasing process run? How long does it take to reach equilibrium (if ever)?
I understand that whenever the DIGG price is outside the 5% (plus or minus) interval of the price of BTC, it would rebase to try to level the price. But it does not seem to do so and I’m a little confused about this.
Can someone elaborate on this a bit?
I suggest you checkout this guide, the supply will continue to contract through rebases every 24hrs whilst below the peg, you can see the count down for the rebasing here, as well as the current bDIGG to DIGG ratio (a gauge of how much the original supply has expanded).
Additional measures are being implemented with dynamic emissions to encourage better DIGG price stability as well as a new stability vault. All of these mechanisms once live should help DIGG stay just above the peg for longer durations, so the supply would in theory would continue to grow slowly over time.
Thanks for the reply, I was remembering some “10 days period” but was not sure what it was. And I was not aware of the price change was a parameter. It is now more clear to me.
One more question, if there was a way to learn these adaptation parameters in a more sophisticated way, would it be considered for implementation?
The 10 days comes in because the rebase is limited to 1/10 of the target price change, to reduce the volatility of the rebases. So it takes 10 rebases to be exposed to the full supply adjustment, that is targeting the bitcoin price.
One more question, if there was a way to learn these adaptation parameters in a more sophisticated way, would it be considered for implementation?
As in how it functions exactly? If you want to go into precise detail you could look at the code base, but you will need an understanding of solidity (the smart contracting language that is readable by the Ethereum VM) to read the code.
There are plenty of materials online to learn solidity or vyper if you are interested btw.
I’m a kind of a data scientist, I have worked with dynamic systems (predicting the current/future system state and taking some action against it, etc.), and doing a Ph.D. thesis (not in a crypto-related field), and at first sight, this seems like an interesting problem.
I will look for the materials that you’ve recommended. Thanks.