The most important issue is not to allow an oversupply of HBD which can be terrible in a bear market.
I think we should find a way of lowering the haircut ratio in a bull market to limit HBD printing, and then elevate the ratio in a bear market to prevent the death spiral.
5% going down to 1% if hive goes above $10 this year for the haircut ratio.
30% haircut ratio when the price is low and consolidating in the bear market.
At $10 HIVE the marketcap would be around 4 Billion USD. That means a 1% haircut ratio will limit printing when the supply of HBD reaches 40 million HBD. This feels like a lot if we get another big crash.
If there is a way to limit HBD printing without using the haircut ratio that is fine too.
I like this idea but it may be complex enough that it would take a fair bit of time to implement.
I think it would be good if witnesses managed the haircut ratio in a way similar to other median-based feed values. However - I don't think witnesses taking an active role can be relied upon (SBD/HBD interest sat at 0 for far longer than it had any right to, due to disinterest).
The haircut ratio isn't really about limiting printing currently. Printing is actually limited before that point. The haircut ratio is really about trying to avoid a deathspiral. It's almost certainly set too conservatively at 10%, but I just don't want to mess with it in this HF.
I see. How do we limit printing then. Is it using the witness price feed?
If it is, I believe witnesses should consider what is the max supply of HBD we want to reach by estimating what will be the hive low in the next bear market. Obviously it's impossible to guess, but it's easy to take a guess being extremely conservative.
Then using that low, caluclate the hive marketcap, which should be able to support the HBD supply. Doesn't have to be 10 times larger, as you said.