I think this is in principle a good idea, but there is another risk. At the moment HBD is not a major source of Hive inflation because HBD savings are a very small part of the overall supply. If these bonds got very popular, they could quickly become a major part of the supply, and substantially increase Hive inflation.
As such, yes I think it's good as long as -
- Witnesses can adjust APR.
- Witnesses can disable creation of new bonds
- Witnesses actively pay attention to these things and make adjustments when necessary.
That is true. However, the risk is minimized because a portion of the HBD will be locked up and hence not able to be converted.
And the haircut rule is still in effect.
Posted Using LeoFinance Beta
It's not locked up forever. After a year, if HBD bonds proved highly popular, you could end up with substantially faster growing virtual hive supply (which could become realized into real hive supply over time).