The DHF (which is STILL included in the hive inflation basis) is now a significant contributor to the Hive inflation basis, and we are now in death spiral territory unless the DHF (which is now HUGE compared to Hive) is removed from the inflation basis of the chain.
Also the spending of 5 mil per year was insane a few days ago at 4x bigger than the curation rewards (the diminishing inflation over time was one of the main investment thesis into Steem and Hive - a clearly predictable, diminishing inflation attracts investors). Without reducing the daily spending cap on the DHF (which we can easily do as witnesses by the way) to bring DHF spending to a fraction of the inflation planned, predictable, diminishing curation / author rewards we are in serious trouble at these Hive prices.
Essentially, DHF is not a predictable addition to the inflation basis, like the rest of the inflation is, and its not diminishing at these low Hive prices, like the rest of inflation is. This means that at these low prices, there is an involuntary value transfer from the pockets of investors to the pockets of people funded in the DHF. There is no sound basis for investors with this situation, and so, something needs to change ASAP. Then we can talk about HODLing
Im not selling, as the only thing left holding hive up at the moment is the fact that DAps can't sell their hive if they want to continue to run their dapps. but at these prices, thats all that is left holding the hive price up and we are in SERIOUS inflationary death spiral territory based on factors that no matter what we do, we cant really control at this point without witnesses reducing the insane daily spending from the DHF and also forking to get the DHF out of the inflation basis of the chain. Id say that an URGENT fork is needed at this point, particularly to get the DHF out of the inflation basis of the chain
One of these DHF numbers needs to come down to about 2,500 to bring us back into a credible inflation basis
If there is nothing we can do, then blockchain is no better than the regular economy. But even in the regular economy there is a huge difference we can make, and I think even more so in the blockchain economy. Hopefully more people will engage, let's see what we all can think of. Sometimes a big negative turns into a positive.
Inflationary death spiral.. sounds serious. Explain it like I'm 6