This makes sense and honestly I couldn't even understand why it's been at 20% for as long as it has been. It undervalues hive itself since you only make a 7%-11% APR while do working (aka curation) the negative of that however is the risk that hive changes in price and does so rather rapidly.
Now HBD does a pretty good job at holding it's value at $1 but there's legit no work to be done to get that 20% APR.
I'm honestly all for slow reduction down of APR on HBD to something more around the 5% - 7% level.
The reason for that is HBD requires pretty much zero work so 5%-7% a little lower APR with lower risk seems reasonable compared to a riskier HIVE APR that puts out around 7% - 11% (I get this percent from general powered up APR and maxing out your curation on average)
20% for nothing?
you mean for the "nothing" of putting your MONEY into this platform into SAVINGS
factually bringing money flow into this ecosystem
it should also attract investors
who do not directly be involved with Hive Power/ curatin/ government/ the platform
just provide some liquidity and get some reward for it (you also do not let others use ur money/ liquidity for free, do you?)
Please explain how a bunch of HBD locked up in savings brings money into hive and provides value and earns 20% of which most likely is constantly cashed out. Thus a sink with a drain that doesn't bring value or produce revenue for the Hive token. If it where up to me there would be no DHF and no HBD it would just be hive.
so they just imagined the HBD into their savings?
have not bought them? with BTC->Hive->HBD ?
so where exactly is your questions how that brings money into hive (the ecosystem) and provides value [literally bringing in money/ value] (liquidity to build the platform further) ?
even if constantly cashed out, that sink and drain would only be a little part of the inflow
to profit
and also very dumb
because of compounding..
yeah, I am also sceptical about DHF and especially the ninja mined stake in it..
and who controls it..
still - I like HBD and still see its potential very unused
the 20% APR pretty much countered our modern fiat inflation and was a VERY unique and special thing
(show me something else that is as constantly stable as HBD in our current world)
the platform and community should use the HBD situation to onboard Bitcoin swing traders
and normal savings people..
great competition with a decentralized stable coin and the APR to exchanged and banks.. but needs better ramps, bridges, pairs.. attention..
Good point I wasn't thinking about the inflow from other assets into HBD. However that means all that value is being locked up into HBD where it doesn't really benefit the system. In fact I almost see it as a new risk if someone had a wealthy amount of HBD that could take that 20% APR and keep buying up hive at a very lower price and have a massive value of powered up hive to vote witnesses. Would it not present a passive risk factor over time?
Also I'm sure little to no fees that would contribute back into the value of Hive where captured in those transactions. Being that it's a feeless blockchain hive was converted to HBD with zero fee or profit to the value of hive. Perhaps a conversion fee is in order and being that we are paying out 20% APR then paying a 0.25% fee or lower shouldn't be an issue at all and would provide value to the hive token if done correctly.
It always comes down however to the root issue. You can talk about all of this stuff but when it comes down to it hive is looked at as an exit flow of money. You interact and do things on hive to get paid and cash out is the mindset of many and it makes sense the way it's structured and promoted as an article marketing site you get paid to post content on. But there's NOTHING to bring that value or sustain that exit flow of money which is why hive always falls back down in value. Fix that mindset or address that constant exit of value and you fix the issue of hive always being worth so little.
You pay a 5% fee to convert HIVE to HBD. (If you are not buying it from the market.)
HBD doesn't contribute much to Hive's inflation it is only around 2-3% while other sources create an 8% inflation for Hive.
The biggest issue I am seeing is that a ton of hive is getting powered down and those powered down hive is leaving the platform. (They are not getting powered down to get into HBD. At least most of it isn't.)
Last 3 months seen at least -1m stake every month. (Source: Arcange's HIVE Financial Stats)
And one important metric would be who is selling HBD and HIVE. Is it people who are putting HBD into savings, or people who are getting paid in HBD through proposals and writing content.
It is important to determine where this money outflow in the platform is coming from.
It comes from accounts voting rewards to accounts that dump.
This is the only source of hive that isn't first bought.
yeah, it is a big complex structure
we need to work more out and involve game-theory
self-reinforcing circles
(but not circle jerks^^)
I've also often addressed the value out -> Hive value down and people voting out-cashers issue..
while it's been quite hard for myself to reach/ earn my stake..
and also only having cashed out once (I already have been dolphin once) when I became homeless and still had big cramps additional to my permanent pain
about the attack vector/ risk you mentioned, I am unsure..
I think the ecosystem is big enough already to level out/ self-regulate
and we also want outsiders to gain influence
(or is Hive already rigged? and those in power just try to keep it?)
government can and will change
(not always the programmers are the best managers..)
And let's not forget sacrificing the security of the chain itself, for profit. HP does a lot more than offer a return. 5-7% seems legit.
It's been at 20% to draw some attention... Can we tell that it was a success? Well, to some extent - maybe.
And yes, you are absolutely right when it comes to reasoning.
We will see how the markets react on that. Well, I'm not even sure if at that small scale we would be able to tell much looking at the data.
Will HBD saving holders move their assets to HP? Or stay even at 0-5% APR range? Or move away?
Time will tell.
well I am moving my HBD to HP
but also only cuz Ive planned that anyway, before I recognized the upcoming HBD change
already wanted more HP the last time it dumped ^^
(also my personal situation may force me to pay out again to survive and that is easier with Hive than HBD too, still at the moment, sadly)
I think HBD and the 20% is a great combination which only lacks one:
better BTC/HBD pairs/ exchange interface/ bridges/ liquidity
and maybe some marketing towards Bitcoiners wanting to swing trade BTC/USD but without direct USD (KYC, BANK)
building it right, many ecosystems can profit from each other
they by having some decentralized stable coin option for realizing trades
and we some additional liquidity for building the platform while they wait for their BTC to fall ^^
etc
I think many will leave - and that's bad!