Note: This post isn't actually a proposal but more an answer to fix the HBD peg in a way that is proven to be not only effective but also results in the peg requiring no user or community input.
The HBD Pegging Mechanism is Trash, Lets FIX It!
With HF25 on the horizon and bringing with it the completion of the the ability to convert HBD <-> HIVE in both ways finally surfacing as a completed financial tool on HIVE. It begs the question to what extent are we actually willing to go in order to ensure a properly pegged HBD currency.
After a long bit of thought over the course of a few days it occurred to me that we as a network could use the "Tether" method and just print a metric shit ton of HBD to dump on the market to control price. Their method is effective to say the least although from a moral standpoint I'm not sure it's the "cool" way. As effectively generating a bunch of tokens to wrangle in a price is something that not all crypto users may agree with fully..
But would certainly be a far greater price control mechanism than we've ever had and fix it imo.
Stabilizer and the Current Peg Mechanism Aren't Enough
As the current method sits INCLUDING the "HBD Stabilizer" effect to amount to less than 1% of the required downwards pressure to actually have the price pegging effect it would require to be considered effective. While a cool try I think at this point we can safely say that the "HBD Stabilizer" experiment basically isn't serving much of the functionality it was sold to us to provide however is certainly helping to prop up HIVE price a bit and add some numbers to the DHF funding pile.
While not a complete or utter failure, as far as a mechanism to help peg HBD prices I would say it's not in the least bit effective at that. A rewording of it's name and intended functionality should probably be considered as trying to convince folks the actions it performs, totaling in far less than 1% of the actual required effect it's touted to provide, seems a bit silly. A better name or explanation of it's functionality would be "DHF Refueling Drive" or "Hive Price Life Raft" instead of calling it a "HBD Stabilizer" then it basically having no provable effect on prices.
What is the communities thoughts on the HIVE network having an automated "pegging" fund that could have the ability to skip the 3.5 day conversion (and obviously has no ability to be human controlled) and do the HBD <-> HIVE conversions both ways once implemented in the next hard fork in order to make up for the current inefficiency the inbuilt pegging and stabilizer pegging effects? I believe this is the least labour intensive way to provide a realistic and effective pegging mechanism on HIVE. What we're currently doing and what was done over the past 5 years or whatever isn't effective and to continue to repeat what is known to be ineffective over and over again is insanity.
Been thinking on how to approach the peg fix in a way that doesn't involve a massive refactor of code while at the same time leveraging existing or coming soon features.
Then looking on how other pegged assets control their peg and applying their method to what our network is or will soon be capable of. It all boils down to the top tier accounts seeing this and agreeing this course of action is going to be far more effective than simply introducing the completion of the HBD <-> HIVE conversion ability then hoping it's not somehow gamed by markets.
Edit: It looks like the Stabilizer is being dialed back in order to create room for developers to begin receiving support for their efforts once again as pointed out by @smooth to me in the comments below. Thanks for the correction captain! This is wonderful news honestly and I don't mind being set straight when I've misinterpreted things. Cheers!
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The HBD peg is intended to provide 1$ USD worth of HIVE value is it not?
Would another viable mechanism be to have large stakeholders take the HIVE price down by dumping their stake in order to make 1HBD = X Hive worth $1USD? I know it's outside of the box thinking and people would probably have a fit seeing people suggest that large stake holders dump to decrease price.. But wouldn't it serve to provide the intended effect of restoring the peg if used in combination with a tether like method or even the HF25 allowed method?
Would serve dual purpose in helping the peg become realistic again by using an effective price control method as well as serve to better distribute stake at the cost of temporarily lowering the HIVE price until it gets back to peg
I'm just brain storming here. I'd love to hear more interesting thought experiments on how the peg can be restored in an effective and timely manner if it's a network issue that must be immediately addressed as it seems to be.
Sounds genius to me. If we want the price to stay stable, then we need actual sell pressure. We need to be the federal reserve basically, have an interest rate, buy and sell HIVE bonds, and finally have an HBD printer that goes brrrrrrrrr. Yeah the funds the robot gets from selling HBD down can be used to prop it up again too, if and when the HBD price even gets under 1 dollar again. I don't think the powers at be really want it down, and are lying through their teeth, however to be sure let's just wait and see how many of them ever respond here, or if they just ignore this important post altogether. Your idea is simple, proven, to the point, and will work. You might even get an economist Nobel prize one day for making the greatest currency system in the world. Once again @klye to the HIVE rescue! I hope they put you in charge here soon so you can be the Elon Musk of HIVE! If we don't do something quick even DOGe gonna catch up to us, and being compared to a crap meme coin is not where we want to be. HIVE to the moon, HBD to the doom!
Yeah man. If we're going to "fix the peg" then we should actually fucking fix it instead of running half measures. As what is being doing currently to "stabilize" the peg amounts to what is effectively a drop of piss in a bucket compared to the required effect.
You might be correct that those in power aren't actually trying to stabilize HBD, but then again maybe they are honestly trying to do that but are too in love with their idea to see how blatantly ineffective it is.
I'm no economist.. But after I cool down from getting angered by something and start looking at things in a completely objective manner given the data provided it becomes obvious that other methods would be completely more effective rather than the fucking lame ass price effect the current efforts are having overall.
Not to mention "they" have been complaining about this since STEEM, and done nothing effective about it.
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A very informative post and comments section, well done sir
positive communication between groups is a good thing, like blingee gifs
Aye, regardless of how I loathe ending up being the asshole who has to be the one to play messenger boy.. If it's something that helps the community not tear apart then I'll do it if need be. Honestly I wish I could just draw dicks to make a living but alas coding and network politics seem to be where my need is. <_<
I like the things you say.
And you have a purdy mouf. ;)
The most telling thing for me would be do the devs who get paid in HBD right now and get about $2 instead of $1 are they keeping it? If so well why the F would they ever want to change it lol
Devs aren't being paid at all at the moment save the guys at peakd.com.. Then the lordbutterfly marketing one but he's not building anything.. Merely collecting funds to pay a marketing agency as far as I know.
All other developers aren't being paid at the moment.
you know the more I stick around here and dig my head into things the more I see the same issues of steem days and it's seriously making me question things now...
Yeah man... This is why I'm being so vocal and bringing things to the forefront in an effort to have those in power currently realize that the greater community isn't entirely under a spell of believing that all is well.
Honestly without being outspoken and offering solutions to issues that we as the community see with the actions of those who pull the strings around here nothing will change and those with the ability to do as they wish and padded by their own financial holdings will never even feel or see the greater effects their decision making ultimately brings to the experience of the community that gives this place any inkling of use case or value..
Give them time to hear us and respond as they wish, then as a community we get to decide what we want to do. The ball may be in their court, but the court is in our arena.
Do you know how the proposal system works and how to check what is funded, because this isn't close to accurate?
Are you still a witness @smooth ? I just got my steemit keys to explore Hive and make some posts.
I haven't changed my witness votes yet. I am still voting for you from stweemit. Trying to figure out who the active witnesses are these days.
I'm a backup witness around #25 or so.
See https://hiveblocks.com/witnesses
It was my understanding that the funding being pulled from the DHF pool was being returned to it somehow. If this is wrong then I'm an idiot who obviously needs re-explained how exactly this all is intended to function. However if I'm wrong on that then the only positive besides some weak force HIVE price upwards pressure has been removed from the equation leaving only the less than effective downwards HBD pressure effect remaining..
Which sort of goes without saying but completely brings into question why the thing is even being bothered with in the first place after it's been given enough time (in my opinion) to be proven ineffective. This isn't some subjective analysis of a pissed of developer either man.. All you have to do is look at buy and sell volumes to realize the entire DHF funding (hell, even if it was 2x or 10x what it is now) daily thrown into the markets as a correction attempt doesn't even begin to barely scratch the sort of force that would be needed to actually help fix the peg. :/
Edit: Also if you have the time to point out my inaccuracy (or link me to a place where I can learn myself) so I can adjust the post accordingly would be highly appreciated. I don't want to spin horse shit to further my own motives, but rather present info as accurate as I am able to and let the community decide for themselves via exposure to accurate situation analysis.
Several of the other proposal have been reapproved and are getting funded. Off the top of my head this includes howo core develpment, hivebuzz, keychain, interia development docs, ecency, and probably some others I'm forgetting. Most of them implemented some form of fix to reduce their cost and make them more attractive to vote back in.
Last I looked only Peakd.com and lordbutterflies marketing proposal were above your largest Stabilizer proposal. Meaning only those two were receiving funding. With all those below it, regardless of being beyond the proposal threshold receiving nothing as the stabilizer was taking precedence over them. That is where I based my statements off of.
If this isn't how DHF works then I've entirely misinterpreted what has been stated in the HBD chat in regards to how stabilizer proposals were being paid over other proposals simply due to their rank and the daily funding allowance being used up on them before it was able to pay to those below.
Everything above this line on peakd.com is funded. There are quite a few. Since the fund has grown so much there is enough daily budget to fund most (not all) of the stabilizer proposals and also many of the developer proposals.
That is exciting news though if that is the case and the developer community is once again being considered for DHF funding over the peg experiment. Incredible news actually!
https://peakd.com/proposals
Part of the reason the other proposals can be easily be funded is the increased DHF budget due to the profits from the stabilizer. The fund has grown (and is still growing at a very significant rate) from a little over a million to 2.4 million HDB in the past 1-2 months, while at the same time making Hive deflationary.
Yay! 🤗
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