Witness Update: HBD APR

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The 'guiltyparties' witness set its HBD APR to 20% earlier today. Why? This is a key decision and it should have an explanation. Some reasoning from a D2B (decentralized to business) outreach and partnership perspective, which is a key focus for myself, is in order:

Hive is unique among crypto-based platforms. There's no pump and dump, no core company that gets a fat paycheck, no goal to startup and sell. No matter who thinks what about Hive, it's unlike most others in the same space. But it shares that space nonetheless and while it doesn't play by the same rules, it is expected to play by the same rules. What I mean by that is everyone else in the space has expectations of what they want to see at the point of connection, not to mention investment.

Before I get into this, let's get one thing straight: Hive is a pioneer and a leader. We don't need to follow others' scam patterns and we frankly couldn't do it even if someone was so determined; Hive is decentralized and there is a balance of power and a balance of influence. No one individual or group can destroy Hive for personal greed or interests. And no one individual or group can claim ownership or undue influence on Hive. It's everyone's project that's united by a greater vision. No one works this hard for 'easy money'; we do for our combined goals and our community.

Just like many elements that shaped Hive and led to its existence, this unselfish approach to supporting true decentralization and greater vision is novel. When prospective dapps or defi ventures that want to link to Hive reach out, many can't understand how it is that there is no CEO and no Director of Bullshit Innovation. When I introduce myself it's by the role I'm undertaking at the time, not by title. Hard to process for most. Who asked me to do this? No one. No one has to ask anyone to do anything in a decentralized project. All contributions are based on our own initiative and ability to support Hive. This is how Hive grows and moves forward.

So let's circle back to our topic here, 20% APR. Put yourself in the shoes of a project that wants to partner with Hive. Normally you'd be able to ask for whatever finances or integration budget, various types of bounties, in order to partner and bridge with another ecosystem. Centralized platforms have that because what they've done is print themselves a large budget. We don't have that and that's just one of the facts of decentralization; there is no one pile of money to draw from and buy our way to the top. We have to work our way to the top. That being said, prospective partners don't understand that. This is new to them and while it's explained, it's unusual in our current tech environment. The answers have to be clear. And the question is: what are the ways and benefits of staking on Hive?

Our main draw for our community members aside from the community itself is posting, which is content creation, and curation, which is content consumption. People love sharing what makes them tick and supporting others. Curation allows those voting to get their share of profits that a post generates. This is great for those who want to immerse themselves in the Hive ecosystem. It is less than ideal for those who wish to invest but are just taking their first steps towards understanding Hive. We have various Level 2 solutions like Hive Engine and its tokens, Dlux, now the SPK network, of course the games, but these all take time to get into and learn more about. People are willing but they also want a quick answer. Something that can be done with almost no specialized knowledge.

(Back in the early days of pre-Hive the go-to was to offer reward pool extraction or similar solutions which are very much driven by centralization of decision and lack of consideration for the greater community. Those days are far behind us. There is no D2B discussion that has ever or will ever include recommendations which can be seen as abusive and disrespectful to our fellow Hive community members. Decentralization is the natural enemy of centralized corruption.)

This is where the HBD APR % comes in. Everyone knows what an annual percentage rate is. It is a common concept, there is no 13 weeks and voting and RCs to consider. It's clear and it's attractive. @Smooth's HBD Stabilizer keeps HBD pegged and stable and it has been successful by all measures, anyone can see that it's as pegged to USD as it can be. I can invest let's say $1000 in HBD as a new investor and I can be confident that a year later I will have at least that. But, as an investor, of course I want to have more than what I started with. This is what determines whether I invest and this is where the APR is critical. An APR that makes investment worth it is necessary.

But ... If we had let's say 200% APR then we'd be looking at another question and that's the question of legitimacy. To be trusted, stability is necessary. There are a lot of projects that offer a crazy APR. Half the time they're rug-pulls, the other half we don't know what they are. We just invest and hope that we get the hell out before the rug-pull stage hits the roadmap. Stability is needed here. And Hive is a long-term, relatively stable ecosystem. Even if we take into account the hostile takeover, it is still stable. We recovered from the privatization and destruction of a public blockchain. Some people didn't even notice the change. So stability is important. Stability of the project, of its ecosystem, of the currency, of investment in general. We take that stability of Hive in general and we place it on the scales against the returns of the staking mechanism.

Investing through HBD is the simplest and most straight-forward method of staking anything on Hive. And this is exactly what we can highlight to our partners and explain:

  • HBD is stable and pegged to the USD
  • It's a native coin and not a token
  • There is a simple Savings Account feature
  • It takes 3 days to unstake (which is a security feature)
  • There is an APR % which is stable and reasonable
  • APR is determined by the community
  • Everything is transparent

There is nothing that can be misunderstood here and it's all clear and supports Hive as a good investment. Hive provides the business value that is expected of any partner by delivering just that: opportunity and stability. The opportunity, if it's not evident, comes from the APR. When we're at the current 12% that's attractive but not very much so. But 20% is far more attractive. However, if we went higher, to let's say 100%, we'd have diminishing returns because then we'd be giving up stability. We'd tip the balance on our scales against stability.

Sacrificing stability (even if its the perception of stability and in this post I won't argue on this topic) will ultimately reduce the faith that our current community members have in Hive and the faith that exchanges and our partners place in us. When someone selects at their discretion the best chain to build their dapp on, they look at stability. No one wants to put their heart into something that will disappear or become unsuccessful. If we jump to 100% for our APR now, straight from 12%, everyone will look at it and ask how did this happen. Is there manipulation? It's a major red flag. From a D2B teamwork discussion initiation perspective, everyone who deals with partnerships is always looking for red flags. No one wants to make a connection and it ends up harming their existing user-base (unless it's a scam project in the first place).

Hive doesn't pay for listings or any opportunities. We talk, we explain, we gain trust, and we collaborate. We find synergies and reach a mutual understanding. We deliberate to identify opportunities which would be beneficial for Hive community members and for the partners' supporters, clients, users, whatever it is they call them. Every opportunity is different and without the element of payment, it is ultimately based on honesty and the desire to work together. Coincidentally, this is what powers Hive: people working together to build a strong community. But the value of connecting with Hive is you can count on Hive, you can have faith in it, you can use it without major barriers and surprises, you can build and it's generally your own domain. When we introduce Hive to others, whether informally or through D2B more formalized initiatives, we transfer that confidence and grow together.

If it's unclear by what I already covered above, the 20% APR on HBD greatly helps with that. It's reasonable, it's beneficial to all stakeholders and investors, it encourages new investment, and it speaks to stability. This is purely from the D2B or marketing/outreach type perspective and provides due justification for our witness parameters.

Support what we're doing? Consider voting 'guiltyparties' as one of your 30 witnesses.

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There were a lot of debates about @smooth's HBD Stabilizer, the comment sections were filled with all types of comments. I kept reading them for hours and hours and in the end, I supported smooth in those times. As much as I remember, he was maybe the first witnesses I ever supported or read his work. My comments are visible on his posts from my early days of hive (maybe month 3). Today I am proud of my selection for him as my witnesses vote. There will be people who will be against HBD stabilizer or 20% APY, same like I have my freedom of expression I will respect there thoughts, ideologies and individual identities. :)

Thank you for the words of support.

This is an excellent Idea. So glad you are putting the APR at 20%. Genius!


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Excellent perspective and not something that many (myself included) think about enough.

Good write-up for spreading news regarding the percentage rise for HBD savings accounts from 12% to 20% ... and also, a comprehensible explanation as to the soundness of the HBD stabilization effort for increased attractiveness with regard to D2B.

Stabilization of HBD (pegged) improves 'Use Case' success between providers of goods or services and consumers. With the addition of a 20% bonus, companies can make comfortable gains to their Capital Accounts by keeping it on deposit at Hive, rather than a little or no interest bearing Commercial Bank account.

What some members see as a "negative" for the Chain, is actually a "positive" from a certain business perspective IMO... Adds to growth potential on all fronts.

Pretty much. We have to look at how attractive and competitive we are from the outside. You're right, regular bank savings accounts don't offer anything close and with the Stabilizer any business can have confidence that's supported by a proven track record.

I may actually refer to this blog to it when explaining Hive/HBD to others.

When discussing with (almost 100% non-crypto) scientists from my institute, no one wanted to trust the 12% APR (mostly considering the full chain as a pyramid scheme). I may thus reuse some of the arguments written in there (sometimes a good written text is better than words).

By all means. There's probably some opportunity to actually model the balance of the scales but would require quantitative data. The pyramid scheme question comes up at times and it's fairly easy to counter as there are no referrals on the platform. Even if we refer a person, that person has full control of their wallet and account and can halt any beneficiary or otherwise connection between the referrer and themselves. Nothing else on the network even comes close in relation. Hive just isn't meant to be a pyramid scheme but of course anything can be mistaken for one.

. Hive just isn't meant to be a pyramid scheme but of course anything can be mistaken for one.

This is precisely the point. I will use it, but my colleagues are generally very suspicious. I have so far never managed to convince anyone, and in fact not even those already versed in cryptos back in the STEEM days (although for them it was clear what Hive was).

The more suspicious the better. Even without specifically prepared data we have time-supported metrics. And it can all be independently verified by anyone simply by looking at block explorers.

I should probably insist more on "check it out by yourself with a block explorer". Clever people may find out. I will try and see. :)

I totally agree, and you already are one of mine!
🙋🏻‍♀️🙋🏻‍♀️👍🏼

Thanks for you support. I always appreciate it and good to hear from you again.

Never thought it would go past 10, but I'm pretty sure that is a highly attractive return. Looks like it still needs a few more from the top 20 (8 that I see so far) so let's hope this kicks in.

We have enough for now to get to 15%.

People take their time to deliberate. If all the witnesses decided without thinking then we'd have a real problem.

Muy buena información @guiltyparties para mí una manera de apoyar está gran iniciativa de Hive es dando a conocer esta gran plataforma a más y más personas para que de unan y también aporten a hive mientras que ellos mismos deciden también se van a beneficiar ......

Tu iniciativa de usar HBD en tu taller es un muy buen ejemplo de la utilidad de esta moneda y de Hive.

Gracias amigo @guiltyparties y pues la idea darle el valor que el HBD se merece y que las personas lleguen a conocerlo

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Sounds very reasonable and trust is always essential.

So thats 20% / 12? Very attractive and primising. Looks like i will be bringing in a lot of people to the party..

Yes. Easy to calculate as well which really helps.

Just voted for you.
Seems that already 10 out of the 20 Top witnesses have already 20%, and on spot 21-23 are also 2 with 20%. So we will get this soon, right?

Edit: We got is already! That was really quick!

There has been a good amount of discussions since the idea first emerged. So yes, it progressed quickly. Our witness (@steempress) will make the update shortly.

Yeah there's been a lot of discussion. This isn't something that's happening overnight.

It's the few days when witnesses are looking for the most part to finalize the deliberation process and make their decisions. Witnesses take a long time to consider any changes normally (not just brainstorming together but personally).

I really hope the 20% goes thru.. I saw it on Marky's page too. Damn I picked good witnesses

His post was excellent, which is why I wanted to offer a different perspective.

Its adaptability is one of the primary characteristics that contribute to the hive ecosystem's success. As a result of this, we have a lot to offer to folks looking for fantastic investment possibilities. You have truly elaborated much, and everything is so crystal plain to me. Thank you for providing this information, sir @guiltyparties

Thank you. It goes a long way. Your well project really showcases it too; a promotional initiative can require a set amount and confidently receive it without any surprise fluctuations which can affect budget and record-keeping.

That's great. And thanks for the response and guidance sir.

Right now I'm checking if you're part of the witnesses I voted for (almost not knowing why I should) to reconsider and start doing it properly. Although I do not understand much about these issues, I have found interesting the percentage of APR that exists and where I have placed my first investments.

I hope this posts helps. If you have any questions feel free to find me on Discord, I answer questions all the time.

I will, my friend.
It is very nice to find friendly witnesses who are truly willing to make Hive the best platform and grow their members within it.
Again thank you very much.

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This is interesting. I agree many that offer crazy APR are rugpulls. I just a small fish so bigger APR don't make too much of a difference. Of course I take it, but I rather have stability and take 12%, HBD is stable, pegged to the USD. And everything is transparent is way more important !

Yeah and unfortunately those scams often look for the small investor to target so they can take them for all they're worth.

No one works this hard for 'easy money'; we do for our combined goals and our community.

This really sums it up.

A concept that appears foreign to a great deal of the crypto world.

Feel free to re-use any of the points here, although they can probably be worded better.

Quite the perspective here, I love to believe is building a very different type of economy, of course, mostly built on trust via community involvement.

The 20% is quite attractive, an empowering tool to the exact.

Now we're seeing this economy transfer over to physical businesses and projects. That's so far the theme of the year.

personas que trabajan juntas para construir una comunidad sólida. Pero el valor de conectarse con Hive es que puede contar con Hive, puede tener fe en él, puede usarlo sin mayores barreras ni sorpresas, puede construir y, en general, es su propio dominio. Cuando presentamos Hive a otros

Esto es esencial, es lo que hace de Hive, el mejor lugar, en cualquier lugar.

Me encanta debido a todo el programa de seguridad y a su vez, de protección de usuario.

¿Cómo lo han logrado? Me preguntan algunos, y es que, algunos programas que han sido creado y ofrecen dinero, crecen de forma drástica, pero caen de la misma manera. Hace poco investigué sobre un juego, donde un inversor depositó un poco mas de 500.000$ al mismo, lo que hizo que el valor del tokens aumentara rápidamente, pero ese mismo inversor, al ver la cantidad de dinero, decidió retirar su apuesta, mas 4.000.000$, lo que hizo que quienes había invertido, perdieran todo, absolutamente todo...

Con Hive, es poco probable, ya que no hay un CEO , como bien dice usted, que sea dueño del presupuesto, además, el hecho que no hay una centralización, hace imposible, como en muchos otros casos, que puedan robar los bienes que cada uno ha invertido.

Y por otro lado, y a diferencia de otros, los que tienen un gran poder dentro de la plataforma, se ven con la oportunidad de apoyar a los demás con sus votos, y ganando con su apoyo. Realmente eso no es probable en otras cadenas o sitios, donde los grandes son los único que se benefician.

Señor @guiltyparties, muchas gracias por hacer del Hive, Hive, el mejor lugar, en cualquier lugar.

Gracias, amigo. Lo que dijiste es como es. Muchos proyectos están llenos de manipulación en aras de las ganancias fáciles por parte de los principales actores y son los pequeños inversores los que sufren una pérdida. Incluso si alguien intentara esto en Hive, hay tantos controles que se detectarían de inmediato y se podrían tomar medidas. Es posible que tengamos más medidas de seguridad en relación con las transacciones en cadena y la gobernanza que nadie. Y como dijiste, Hive brinda la oportunidad a aquellos con cualquier cantidad de riqueza de transferir una parte de su influencia en apoyo de otros en beneficio mutuo.

An excellent articulation of the actual, real, practical promise, and real value, that blockchain technology represents. Thank you.

Hive is truly unique, in exactly the way you say:

this unselfish approach to supporting true decentralization and greater vision is novel

Cheers!
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Thanks, and yeah it is. Never seen anything else like it and probably never will.

Yes, the quicker we get realistic, as relates to the potential, amounts of hbd out there the better, imo.
A couple 2 for 1 splits would ramp up interests, iyam.
But, that isn't why I'm here, today.

You have better contacts in the coding community than I do, perhaps you will consider placing a bounty and funding proposal for a ui that maintains a url that allows account creation, deposits/withdraws, and a connection to one or more swap exchanges with low fees, <.5%?

The idea is to allow anyone to access a url that gives them an owner key, explains the active key, allows deposits into savings, hp, or liquid hive/hbd from the coins they have, and little else.
If they want other features they can use one of the other ui's.

This is to facilitate joining to deposit to the bonds, once allowed.
Sign up fees and swap fees should be low.
Maybe just enough to self fund hosting and some maintenance costs?
Deposit and withdraw fees should simply cover exchange fees, and not be a 'source of profit'.

By allowing for this 'light account', similar to wallet.hive.blog, to skip the drama and frustrations of dipping their toes into the rewards pool, sitting by the side of the pool becomes more attractive.

This ui will serve as a gateway for passive investors.
With 20% interest on savings it is more economically advantageous to passively invest than to stake and get ~11% at the cost of finding 10 non-crap posts to vote 100% votes on per day.
With one url to send our friends to, the 'kiss' principle is maintained.

Maybe a referral system is to be considered, maybe not.

I'm not sure it should be open source as imposters could spring up.

While I have your attention, can you tell me who pays the hosting costs associated with hive.blog and its wallet?

Can you message me on Discord sometime when you have a moment about this idea? I think I understand what you're getting at, which is essentially a UX project to streamline onboarding of investors. I actually believe the framework for this can exist as whitelabeled as it's not uncommon among non-crypto projects. But I could have misunderstood. (Hosting costs of this are minimal by the way, it's only a matter of development and design.)

@Blocktrades does and for the image hosting infrastructure.

It's human nature to have a lot of misunderstanding and debates since everyone's is looking at things from their own point of view. But then at the end of the day every person always knows what's right and decides to go with it or remain in worthless doubt.

I wouldn't try to act like I understood everything you just explained above @guiltyparties but I've been on hive for a few months and I agree with you on that one. Hive is long term, there's no big rush to out do ourselves and get unnecessary attention. Slow growths yield very big results at the end, community participation and development is a big thing here, trust is also what keeps us going. I can choose to invest my money on something that I can trust and the more trust is gain the more stable the project or community.

Hive is growing and I like the fact that even if there's no centralized government they're people ready to come together to make decisions that'll grow the Blockchain..this is the best part.

The 20% APR increase in HBD Savings is just what we need, it surely is a tempting offer..for a coin backed to the USD there has to be stability and convincing more people to invest and HODL HBD is the way to go.. with time the coin would grow in volatility..
That would surely be great..

Glad you took the time to explain it all ❤️❤️❤️✅

You said it pretty well yourself. I appreciate you taking the time to read. The finances here are a big focus but not everything there is to Hive.

This is really incredible I have been up with the HBD APR increase in saving which it's like a shocker to me, but if it's true then hive will be so stable cause many investors will be pumping

But my issue is in the decentralization

Coincidentally, this is what powers Hive: people working together to build a strong community. But the value of connecting with Hive is you can count on Hive, you can have faith in it, you can use it without major barriers and surprises, you can build and it's generally your own domain. When we introduce Hive to others, whether informally or through D2B more formalized initiatives, we transfer that confidence and grow together.

As you clearly stated above, we grow individually, but this side won't be clear to investors who just want to come reap the benefits and zoom off, without understanding how the system works

But does this mean hive will gradually fall off decentralization mode to been centralized? Because it will now turn to be A GAME of the highest bidder

With a community that's decentralized it's not possible to centralize it gradually or abruptly as you would lose the community in the process. And with Hive, if you lose the community, you will lose all value. This is what was attempted by Steemit and it was a complete failure because the community was already only suitable for decentralization. Investors who are smart and who have been in the game for a while know what to look for and they're more interested in results rather than operations. Centralization is easier to explain at first meeting but once the numbers come out and we can show stability, people understand.

With a community that's decentralized it's not possible to centralize it gradually or abruptly as you would lose the community in the process. And with Hive, if you lose the community, you will lose all value.....

Yea you just made it clearer ....I hope it grows this way ...Thanks for the light

Makes sense to me. 20% is a no brainer for any investor right now with rising inflation globally.

This is a great explanation of this unique community.
We really are something special. 😊👍

You've got my witness vote.

I'm sharing this post with a good friend of mines who I've been talking about Hive and the opportunities it has long ago without any success, let's see what happens.

Thanks so much for this concise and clear explanation on your view and perspective, I appreciate it too much.

I will come back in case I'm succeed.

Hugs

No problem and thanks. There are also other similar initiatives like this one that support Hive while benefiting local communities from the ground up.

Indeed but I think this "neutral" calmed and clear language may do the trick.

I cannot be sure how are we seen from aside since I'm here almost from the begining so maybe I'm not able to make others that aren't confident about the blockchain come and see the investment opportunity in the hope that afterwards they are able to see what's far beyond that.

I thought you replied to the other comment so that's why mine seems off. In regards to the APR all you need to do is go over to @arcange's profile and pull up the latest financial stats report, you'll see a major upwards trend in HBD savings since the change. It's got 2 years of stability due to the stabilizer bots so people trust that the price will stay pegged. The history of this peg is now sufficient for confidence in investment (no one invests on speculation alone unless they're an idiot, everyone invests where some predictability in results is possible even without advanced modeling).