As was clearly pointed out, it also makes profit for all Hive holders. And it is a great advertisement for the profit that the profits being made by the hdbstablizer proposals (which are paying for >25% of the Hive development and marketing proposals right now.
I LIKE seeing these on trending, because they are great advertisements for the economic-minded investor. And this helps everyone, including content producers, because increasing the price of Hive not only helps out Hive holders, it also increases the rewards pool payouts.
At what rate? $25 per $100 per post? I know the populace of Hive is small, but it's not that small.
And the old Burn post and Potato didn't manage the desired effect?
Investors are not gonna magically help stabilize the peg. The peg would require a way to counter the activities on Upbit. Unless, that's no longer the goal here. In which case, post away.
It's becoming obvious to me that many people don't really understand the percentage profits made by the stabilizer posts and the stabilizer proposals, or I guess there wouldn't be complaints. Here's the math as I calculate it: Investment of 10K that returns 30% in a day. Even ignoring compounding, that is an APR of 10680% (30% * 356 days). And all that profit is being redirected into buying Hive, which drives the price of Hive, which in turn drives more profit for content creators and curators. This is not a zero-sum game.
Every time I see someone comment that this won't stabilize HBD, I just think to myself, that would really be cool for Hive holders, if it was true, because it would be an incredible money making machine.
But in my opinion, eventually at the current growth rates, the ever-growing selling pressure created by these efforts will inevitably push HBD down. And everyone that profits from Hive (stakeholders and content creators) will benefit from the incredible returns it generates while the process lasts.
Okay. So, let's put that in context with the numbers shown on exchanges.
How much is that daily 30% compared to the numbers shown there?
It will blow them away with the compounding.
Unfortunately, because the daily DHF budget limiting wasn't designed exactly to my original specification, it divides new money added to the budget by 100, instead of just existing money, so the compounding is not nearly as fast as it could be (at that rate, any price action on any coin, even BTC, would be rapidly crushed). But it's still a pretty fast growth rate.
Btw, if you want to see what kind of compounding we would have had if we didn't have the 100 day divider on new money as well as old money in the DHF (ie. my original spec for the DHF), go to this page, plug in 30% daily interest and select daily compounding. It's somewhat eye-opening...
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
30% daily (or 10950% annually) would literally cause the calculator to overflow. Are you sure about that?
Even at simple interest, you are still looking at almost 110x of your initial investment.
Yes, I'm sure. You can do it with a spreadsheet too.
The only issue, as I mentioned in other comments, is that the final implementation for DHF imposes the 100 divider on the new money (the profit) as well as the old money already in the DHF budget. So the real compounding rate doesn't match the daily compounded rate as it would have, it's a more complicated formula with a lower compounding rate that the page can't calculate (but you can do it with a spreadsheet and it's still quite huge).
Could we implement the hbdstabilizer AMM logic directly into hived so a part of the DHF inflation (without brakes) could be directed towards that "trustless" account?
By the way, just for amusement value, do a web search, plug in a daily interest rate of 30% and a daily compounding rate and look at the crazy APR that would generate for Hive holders if HBD could resist this kind of pressure for a year.
You may want to double check your math on that.
Read my other comments. If they are not clear, feel free to comment and I'll explain further.
Same mechanic in a pool with hive to HBD converting would be a Hive defi solution that brings HBD forever to 1$ with high returns at the start :)
I think by now it is clear there is a lot of community members that dont like to see these posts on trending.
Hope yoy show some sense about that. Afterall community is where the value is...
I wrote this last night: https://gitlab.syncad.com/hive/hivemind/-/issues/155
But I still doubt it's the issue.
Well thanks for trying things out.
Where's the spreadsheet showing the numbers proving the concept? I've not once seen a post contributing a price increase to this proposal and if it could be proven, then we should be seeing them.
I think it's a scam and probably only benefits developers with approved proposals. It needs to stop.
Support users not windfilled proposals. This Oligarchy is a joke!
If you just want to see the transfers of profits to the DHF, you can see them here (see the transfers of Hive to hive.fund):
https://hiveblocks.com/@hbdstabilizer
No, I want to see proof this has increased the value of hive directly through the markets.
There's no way to prove that in a quantifiable way, IMO, because there are many possible drivers for price appreciation. Now, it's generally accepted in the field of economics that additional demand in the face of unchanging supply leads to higher prices in unregulated capital markets, but its hard to characterize exactly how much additional demand is created by the hdbstabilizer on a relative basis (mainly because it's fairly clear that a lot of reported volume on some centralized exchanges is not real).
But what is quite provable is that the DHF, which funds a lot of development for the Hive ecosystem, is profiting substantially from the stabilizer (which in turn means the cost to the blockchain of all that development is lower). From my point of view as a Hive holder, that's good enough.
So, the devs benefit and not necessarily the user. That's what I said I'm the beginning. You guys are already making plenty.
From my point of view, almost nothing you have said above is correct. Hive devs are not making a lot of money, relative to what they do. And every Hive holder definitely benefits from the work they are doing. Hive literally wouldn't exist without them.
Are you referring to profits by devs that also invest in Hive as a cryptocurrency (which not all them do, of course)? And if so, don't you understand they could make similar profits just by investing in another cryptocurrency and doing nothing at all?
If I were vying for a piece of the pie I'd do the same thing, speculate,exagerate and make assumptions in the positive. The fact is, there's more development here than most anywhere else and much of it unnecessary for success.
That being said, you are basically the one top account that can make or break most other projects, even your own. That model is exactly the same as the American Congress and is hardly decentralized.