The amount of inflation generated by HBD interest is very small compared to other sources of inflation in Hive. There's a couple of reasons for that: 1) HBD total supply is effectively limited to 10% of Hive marketcap and 2) most of that HBD is held on exchanges and in the DHF (i.e. not in savings account where it can receive interest payments).
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Do you think its is important, just for optics to new investors, to have the % of interest with the savings wallet of HBD to hold steady at a consistent % at least annually to not confuse new investors. If that makes sense. Just wanted your input as I'm ignorant on a lot of financial matters
It's a judgement call. There's value to consistency. There's also value in flexibility. If the USD starts to inflate heavily, it will be better to be able adjust more regularly.
Thanks for your input!
Do you think its is important, just for optics to new investors, to have the % of interest with the savings wallet of HBD to hold steady at a consistent % at least annually to not confuse new investors. If that makes sense. Just wanted your input as I'm ignorant on a lot of financial matters @blocktrades
How is the market cap limited to 10% of Hive? Is that because hbd is only created by 50% of the rewards and there is no other way for it to be created? I thought in HF25 we can now exchange hive for hbd, is there a mechanism in the exchange process to limit supply?
The blockchain stops producing HBD if the value of it reaches 10% of that of Hive.
It will pay out in liquid Hive until the percentage drops below 10%.
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Makes sense, by the sound of it, everything has been thought through quite thoroughly, which is great, gives me confidence
There are a lot of reasons to be confident about Hive in general and HBD in particular.
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