I don't really agree this is significant. If you're paying 1.20 or 1.50 to buy 1 HBD, you're betting 20-50 cents (at risk if it goes back to 1.00) that it will go higher even. This usually happens in days, weeks or perhaps months. 3% per year is hardly much of a factor in that calculus.
I was in favor of the 3% (and I posted about it). The idea is not to try to turn on a dime. Yes it is above $1 now but there have been plenty of times (including a few weeks ago) when it was $1 or lower. Paying 3% at least gives people some reason to hold it when it is $1, which mostly doesn't exist otherwise. Keeping the interest set even when it isn't strictly needed helps create awareness that it even exists (case in point: you just noticed).
I do agree that if it were to stay above $1 consistently for an extended period of time then the interest should not be paid as it is just a (small) waste of money, but for relatively short term market fluctuations I don't think it needs to be constantly changed.
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It is paying 3% apr
Yeah, but why?
Because they decided it is not much and is a reward for the risk of puting the money on Hive. It is a small form of retribution.
Thats a stupid reason. Interests should only be paid when HBD is under 1,00 to incentivize buying and hold.
Paying when over 1 USD only creates inflation and push the price down.
To put the price down is one of the reasons too. The idea is to let it pegged to the dollar as much as possible.
No. If you pay interest you are incentivizing the buy, pushing price up. it will unpeg even more.
Depends on how much is the interest. In the crypto world 3% is nothing. It only serves to increase supply.
I don't really agree this is significant. If you're paying 1.20 or 1.50 to buy 1 HBD, you're betting 20-50 cents (at risk if it goes back to 1.00) that it will go higher even. This usually happens in days, weeks or perhaps months. 3% per year is hardly much of a factor in that calculus.
I was in favor of the 3% (and I posted about it). The idea is not to try to turn on a dime. Yes it is above $1 now but there have been plenty of times (including a few weeks ago) when it was $1 or lower. Paying 3% at least gives people some reason to hold it when it is $1, which mostly doesn't exist otherwise. Keeping the interest set even when it isn't strictly needed helps create awareness that it even exists (case in point: you just noticed).
I do agree that if it were to stay above $1 consistently for an extended period of time then the interest should not be paid as it is just a (small) waste of money, but for relatively short term market fluctuations I don't think it needs to be constantly changed.
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