I struggle to understand the rationale for changing HBD interest rates. Especially as I can't see any arguments published when witnesses change their rates. Nor have I been able to find any analysis of the effects of rate changes. All of which might be from me looking in the wrong place. But it makes it difficult for me to suggest what the rate should be.
So for the lack of anything that makes me want it to change, I suggest we keep the rate as it is.
!BBH
!PEPE
!WRD
Posted via HiveSuite
Bascially, the interests on HBD are coming in addition to the natural inflation of hive. The problem is that with low hive prices, these interests represent a lot of hive tokens that are minted out of thin air.
Let's say there are 1'000'000 HBD in savings. This means that 100'000 are minted per year. Which is the equivalent of about 2 million Hive at 0.05 cents if my calculation is correct. By reducing the interest rate, the number of minted hive is reduced accordingly. On the other hand, having low interest rates, encourages people who hold hbd to swap them for hive and thereby really creating the inflation. As long as the HBD is in HBD, it doesn't affect hive inflation but once it's converted it does. So high interest rates means, potential higher future inflation. So there is no perfect solution.