I have some disagreement with the change in monetary policy under the current market value of HBD. It should be self evident that any measure that increases the buying pressure of hive dollars when it is overvalued doesn't help bring the price down to the target of 1 USD.
However it might help bring it down closer to the peg for one counterintuitive reason: The main receipients of the benefit of having interest paid for holding HBD are the exchanges since they hold the majority of the supply (I think). They might decide to cash in on the interest paid on a regular basis.
Although the increase in supply that comes with having a positive interest rate is minuscule so I doubt that it makes any diference especially with such a low APR.
If by "current market value" you mean this instant, then yes it is a bit overvalued, but mostly it just isn't that stable. On several occasions in the past week and even in the past 24 hours, the price has dropped to $1 and the stabilizer has stopped selling (and has even done a tiny bit of buying).
Realistically we can't make changes like the interest rate on an instantaneous basis and need to make a longer term assessment.
Also, when HBD is overvalued I don't believe the interest rate serves as much of an incentive to hold it (of course it does somewhat) for the simple reason that anyone buying or holding at more than a 5-10% premium is clearly speculating, and stands to make or lose a lot more than the interest. In that case, paying it is probably a little wasteful but likely not all that effective or harmful in terms of price action. It's more effective as an incentive to hold when the price is at or near $1 (interest serves as upside and downside is limited).
That is why I said that I have "some disagreement". Overall I don't think that it makes much of a difference in terms of price action. I would even go as far as to say that having a much higher APR (10% to 20%) is not a bad idea in the long term. Well...maybe 20% is too high (or maybe not).
Agree on all points
Wait, I thought your HBD would have to be in your savings account to receive interest?
Savings is just a security feature, about allowing you to have time to deal with your account if it gets hacked. SBD/HBD has had an interest rate since launch, before the savings feature was created. Witnesses set it to 0 after SBD became overvalued, and most of them never touched it again after.
For now tm... things might change ;)
Nope, you just have to hold it. The idea of using the savings account in order to accrue interest is just that...an idea that has been suggested by several people.