Upvote this post to fund @hbdstabilizer

in #hbd2 months ago

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The rewards for this post are set to 100% beneficiary going to the @hbdstabilizer account.

Benefits of @hbdstabilizer

  • The @hbdstabilizer account buys HIVE on the open market with HBD when HBD is above $1.00 USD.
    • This puts sell pressure on HBD (when HBD is above $1.00), which helps stabilize the price of HBD.
    • This puts buy pressure on HIVE, which helps the price of HIVE go up.
  • With the current proposal amounts from the DAO and HDB estimated at $1.50, the @hbdstabilizer account has been buying over $30,000/day worth of HIVE by selling over $30,000/day worth of HBD.
  • When HBD is above $1.00, the @hbdstabilizer is actually returning a profit back to the DAO on top of returning 100% of the funds that are paid to it. In an example scenario where HBD is trading at $1.50, @hbdstabilizer would be sending over $9,000 USD profit per day back into the DAO fund.

FAQ

  • How often will these posts be created?
    • 10 posts/comments are being created per day. This is allow stakeholders to choose how much or how little of their voting power to direct towards the @hbdstabilizer effort.
    • A majority of the posts will be created as comments instead of root level posts to reduce the amount of noise on the trending page.
  • Why can't this be funded entirely from the DAO?
    • The existing proposals have maxed out the amount that can be received from the DAO without taking away funds from other proposals. The funds from these daily posts will add to the funds that are provided by the DAO proposals.
  • What happens to the HP that is sent to the the @hbdstabilizer account?
    • It is powered down and sent to the DAO.
  • Will the amount generated by these posts even make a difference?
    • Every amount added to the @hbdstabilizer fund will generate additional buy pressure for HIVE and sell pressure for HBD (when the price of HBD is > $1.00).
  • Aren't these posts taking rewards away from content creators?
    • The rewards pool is a community governed fund, and it is up to stakeholders to collectively decide how to allocate those funds by voting on the posts that they feel add the most value to the platform. If the stakeholders choose to vote for funding @hbdstabilizer with some of the rewards pool, it is entirely within their right to do so.
    • If the price of HIVE goes up, the amount of rewards in the rewards pool increases. That would mean more rewards to pay to content creators!
  • Why do we need to see these posts on trending?
    • The @hbdstabilizer fund is adding value to the Hive platform. Existing and potentially new stakeholders who are interested in the platform may find value in seeing it there.

Other posts about @hbdstabilizer

Account Ownership

Witness Voting

I strongly encourage all HP holders to participate in Hive's Proof-of-Stake governance model. This means either taking an active role in voting for the witnesses you think are doing the best job or delegating your witness voting power to someone you trust by setting them as your voting proxy.

You can vote on witnesses here:

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This a very nice plan.
You gave me a very good explanation so the plan and this is something that would help to facilitate the growth of the hive.

Well Done

This means holding HBD right now tho is a bad idea, because you are trying to suppress the price of HBD to $1.00, so shouldn't we be selling our HBD for HIVE as well?

We are being transparent in terms of the goals of our efforts and the way we are doing things. We cannot make predictions on the future price of either coin though.

Understood, thanks.

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Nice advice, i follow it & i like it.👍

Wery good nice ;

Very very good HBD coin

magnifico me guusto la explicacion

I upvote for funding!

this is an encouraging place! thanks for your continued efforts

nice and thanks

IMO it's imperative that the stabilizer start to convert HBD at low prices. Someone will profit from HBD conversion - it's better that the profit goes to the DHF which is inherently a long term holder.

If the market price of HBD is over $1.00 USD, then anyone converting instead of selling would be loosing money.

Yes, but when price is below $1, it leads to high inflation. As we have seen in the past if the price of Hive also goes low, inflation can go way above the rate described by the scheduled rate.

Posted via D.Buzz

Inflation is unaffected by the price of HBD other than the fact that people convert when SBD is <= $1.00 and they don't when it is above.

other than the fact that people convert when SBD is <= $1.00 and they don't when it is above.

I don't know why you are being so flippant, that "other than" is a major source of inflation in Hive and Steem historically. When the price of HBD is below $1 AND the price of Hive is below the average rate at which the HBD was created - the virtual supply expands at the same time that conversions happen. This has been the cause of Steem and Hive inflation being in the range of 15-20% per year instead of as it is supposed to be below 9%.

Inflation has been a major problem in Steem and Hive. Right now times are good and inflation is low/reversed, but after created all this extra HBD to create selling pressure, witnesses and the ecosystem should be prepared to mitigate the inflation that will arise in a bear market as we have seen repeatedly in Steem/Hive history.

I am not trying to be flippant. I just don't 100% agree with your viewpoint.

Yes, if the price of HBD stays above $1.00 USD forever there will never be any (smart) HBD->HIVE conversions. But that is not now the system was designed to function. I don't agree if your premise is that we should try to keep HBD above $1.00 for as long as possible to prevent any conversions.

It will likely go below $1.00 at some point on it's own and then we will be in the same situation. More likely in the scenario when it happens on it's own though, it will be during a bear market and then the problem you are worried about will be worse than if we "cause" it to happen while a bull market is taking place.

We are also not trying to force HBD below $1.00. Just bring it down to where it is at $1.00, which is it's intended purpose.

Also, if you look at the actual data for what has been happening under this effort, HIVE has actually been being deflated as a result of the mechanics of the hbdstabilizer. We are actually trying to help fix the problem that you are concerned about, we are just going about it in a different way.

When the price goes below $1, the stabilizer will not be buying Hive, and Hive will be inflationary again (as normal). From there, there are two possibilities.

1). As it goes sufficiently below $1 enough to justify the risk of converting, private traders will start converting HBD for profit. All the profit goes to those private investors, and all the virtual Hive behind that HBD goes to the market as inflation.

2). As it goes sufficiently below $1, private traders and also the DHF start converting HBD for profit. In this case, some proportion of the profit still go to private traders, but a not insubstantial (and potentially the lion's share) of the profit goes to the DHF. A lot of the virtual Hive is still released as inflation, but a substantial portion is captured by the DHF, mitigating the inflation.

What is the reason we should choose option 1 over option 2?

Yeah, that makes sense. I would prefer 2 as well. Someone would need to setup a proposal to fund it though, as well as do the work to handle the conversions. IMO, it is outside the scope of the current proposals that are funding @hbdstabilizer. Stakeholders voted on the hbdstabilizer proposals assuming it would work a certain way. To change how the funds are used after the proposals have been approved does not seem like a good idea.

I don't run @hbdstabilizer. My only involvement with it is to create these @hbd.funder posts which send additional funds to the account. @smooth is the one who actually runs the stabilizer. You may want to reach out to him and see what his thoughts are on handling the conversions to add support on the other side of the peg.

A reason to prefer (1 ) over (2) is that (2) puts DHF funds at risk, rather than people putting their own funds at risk.

Conversion is not a guaranteed profit. There is a judgement call to be made how much of a discount is needed to be worthwhile, and beyond that, the risk of theft exists too, which increases when the funds are locked up for 3.5 days instead of being returned promptly. None of these issues apply (at a systemic level) when people risk their own money.

I'm not saying we shouldn't do (2). It is included in the stabilizer proposals and can be implemented at any time, and I may well implement it. My actual hope (though certainly not a guarantee) is that we won't need it much because we can attract enough demand for HBD with an attractive but reasonable yield that it rarely (not saying never) goes below $1.