That's likely not as simple as it sounds, destroys an enormous amount of value, and may cause an enormous amount of inflation. If it's done without compensating HBD holders, there would still be those prior risks, but the main damage would be to the integrity of the system (it would be like Bitcoin miners forking to neutralize a huge amount of bitcoin).
Aside from the inherent value of having a stablecoin, the mechanics of HBD work to remove Hive from supply, creating price pressure on Hive (removing over 8 million hive in the last few months alone). That will no longer exist if we remove HBD entirely.
Aside from the inherent value of having a stablecoin, the mechanics of HBD work to remove Hive from supply
Can you elaborate on this a bit for me? Is it actually removing from supply or just issuing a note that will resupply those tokens in the future if the holder seeks to redeem their HBD?
I intended to write a longer reply, which is why I haven't written one yet, but I've been away on holiday and have not had the chance.
A very simplified answer is that there is a bit of both - Hive is redeemable in the future though removed from the market but also some is destroyed entirely.
That's likely not as simple as it sounds, destroys an enormous amount of value, and may cause an enormous amount of inflation. If it's done without compensating HBD holders, there would still be those prior risks, but the main damage would be to the integrity of the system (it would be like Bitcoin miners forking to neutralize a huge amount of bitcoin).
Aside from the inherent value of having a stablecoin, the mechanics of HBD work to remove Hive from supply, creating price pressure on Hive (removing over 8 million hive in the last few months alone). That will no longer exist if we remove HBD entirely.
Can you elaborate on this a bit for me? Is it actually removing from supply or just issuing a note that will resupply those tokens in the future if the holder seeks to redeem their HBD?
I intended to write a longer reply, which is why I haven't written one yet, but I've been away on holiday and have not had the chance.
A very simplified answer is that there is a bit of both - Hive is redeemable in the future though removed from the market but also some is destroyed entirely.
Losing potential upsides of having stablecoin within the ecosystem?
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