Steem Dollars are denoted by the symbol SBD, an acronym for Steem Blockchain Dollars. Creating SBD requires a combination of a reliable price feed and rules to prevent abuse. Providing a reliable price feed involves three factors: minimizing the impact of an incorrect feed, maximizing the cost of producing an incorrect feed, and minimizing the importance of timing.
SBD is a convertible bond-type token of the Steem blockchain with a value stabilization mechanism, and is paid as a reward along with STEEM (SP) to users active in the Steem ecosystem.