The proposal has already taken out of circulation more than 150k hive from the market in just a few days. All the funds are immediately returned back to the DAO so the cost to the stakeholders is zero.
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The proposal has already taken out of circulation more than 150k hive from the market in just a few days. All the funds are immediately returned back to the DAO so the cost to the stakeholders is zero.
That is 150K not in circulation that will be needed. You need the HBD there to allow for people to be able to use it as a currency. That's why it has a peg, Pointless trying to make HIVE a currency.
Removing HBD to prop up the value is a joke. For that same 150K, we could be returning up to 2K per month for infinity to the DHF
I don't think you understand how this proposal works or the economics of maintaining the peg. In it's current form there is only one incentive to maintain the peg...when HBD goes below one dollar traders can profit by converting them to hive. To do this they need to buy HBD (which helps bring it back up to it's intended value) and then sell the hive obtained (which puts downward presure on the price of hive).
However, when HBD is trading above one dollar there is no economic incentive to bring the price back down. This proposal gives an economic incentive for traders to buy hive on external markets and sell it to the DAO in exchange for HBD. They then can sell it on the open market and profit from the trade which helps bring the price down.
Right now the proposal is removing Hive (not HBD) from circulation. Your comment is either a typo or you have no idea what is going on (or you are trolling).
All algorithmic stablecoins have similar structures that incentivize increasing or removing coins from circulation.
You mentioned that you could do this for less. Instead of just giving negative comments why don't you submit a proposal to the DAO explaining how you would do it.
Working on the proposal. Some issues around governance of accounts seems to be the hold back. solutions needed there
If your solution is good enough I will support it.