Assalamualaikum everyone! Welcome to the post. Hopefully, all of you will be doing well and enjoying the time with the grace and blessings of Almighty Allah. Today, I'm here to share very important and interesting topic which is all about **The Return of SBD**. So, let's start the fun without any wastage of time. ![1000044226.png](https://cdn.steemitimages.com/DQmRH82XPBv6xJexKrXm17uLJQZQMFnN2CsdRjgu6a2PuCm/1000044226.png) _{Thumbnail Created By [Canva](canva.com)} ___ ####

SBDs are Back

___ SBD actually stands for Steem Backed Dollar which is a reward token of the Steemit platform and we all know that we were not receiving the SBD rewards for the past one and half year. But now, the good news is that the SBD rewards are back again. This means that we will also receive SBD now along with the staked rewards called Steem Power (SP). - **What's the Reason?** Most of the Steemians are nit aware about the reason behind the return of SBD or even most of them are not aware about the mechanism which controls the printing and rewarding of SBD. It is actually controlled by a ratio which is called as SBD Debt Ratio which controls the whole process of printing or not printing of the SBD tokens. - **What is Debt Ratio and How it controls SBD printing?** Debt Ratio is actually a ratio between the market capitalization of the STEEM token and the market capitalization of the SBD token. So, the formula for calculating the Debt Ratio is, >Debt Ratio = STEEM Market Cap / SBD Market Capitalization Now, most of the readers were thinking about the market caps of STEEM and SBD, and how to calculate it. So, there are some general formulas for the calculations of these market caps. > ° STEEM Market Cap = Virtual STEEM Supply * STEEM Current Price And, > ° SBD Market Cap = Total SBD Supply * 1$ We can easily get the Virtual STEEM Supply and the Total SBD Supply from the steemdb.io platform. ![1000044221.png](https://cdn.steemitimages.com/DQmctZ1DH2CkWKNFJdGbuWb7Spe8s4BBFtpVVS8GfHkxonD/1000044221.png) _{Screenshot from Steemdb.io} - **What's the Current Debt Ratio?** By putting the data in the above equations, we can easily get the current debt ratio. As, Debt Ratio = Virtual STEEM Supply * STEEM Current Price / SBD Market Cap = Total SBD Supply * 1$ Putting the values, Debt Ratio = (491515835) * (0.26) / (12566938) * (1) **Debt Ratio = 8.8%** ___ ####

How Debt Ratio Effects SBD Printing

___ As I have already said that the Debt Ratio is actually the main thing which determines whether the SBD will be given to the authors or not. So, here we will talk about the three different values of Debt Ratio and their effect on the SBD Printing. Debt Ratio | Author Rewards ---|--- Above 10%| STEEM, SP Between 9% - 10%|STEEM, SBD, SP Below 9%|SBD, SP As we have already calculated above that the current debt ratio is 8.8 percent which is below 9% that's why we are getting SBD rewards now. SBD Printing rate varies with the change of the debt ratio and it can be calculated from the below formula, > SBD Printing Rate = 100% * (10 - Debt Ratio) If we will talk about the current SBD printing rate then it would be **100%** because the debt ratio is below 9%. With the increase in the debt ratio from 9 - 10 percent, the SBD printing rate decreases and vice versa. And, once the debt ratio increase above 10% then the SBD printing rate would be 0%. ___ **So, this is a complete explanation of the Debt Ratio and their it's effect on the SBD printing rate. Currently Debt Ratio is below 9% that's why we will get all the liquid author rewards in the form of SBDs while the staked rewards (SP) will remain the same.** ___

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