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RE: HBD stabilizer proposal

in #hbd3 years ago

Based on some conversations around HBD, my understanding is that, its primarily used by people who are seeking funding for projects and would accept HBD. HBD being stable will guarantee that, they get a stable funding. How is it going to benefit the hive investors ?

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Well, the benefit is quite obvious - there will be no additional inflation.

Look at it this way.

Hive is worth $10 usd - as author you earn 100 hbd.
At that time, you can buy 10 Hive with 100HBD - via conversion. If you decide to wait a bit longer and the price of hive sharply falls down to let's say $1 usd, now with the same amount of hbd you can convert it to 100 Hive tokens - 1000% newly tokens are being minted, thus increasing the inflation above predetermined rate.

HBD is good tool during uptrends and has been designed on a premise that crypto in general will rise in price - long term.

Good explanation - thank you - he should have included a link to the proposal here.