THE BACKGROUND
Over the past few days, the Hive Twitter Community experienced an uproar when Andrew Quinn made a remark against the 20% APR on HBD savings calling it a Scam.
Tagging the 20% APR on HBD as a Scam, in some way, indirectly portrays the HBD as a Scam, and an extreme understanding of this will be that Hive is somewhat a Scam, since the HBD is tied to it. Little wonder the Hive Community came out enmasse to defend precious Hive and clarify the damaging statement, just as Bees to defend the “Queen” Bee.
ANDREW QUINN’S WISDOM
As a self-proclaimed Web3 evangelist who relies on web2 products like Medium to preach his “gospel of web3” and trying to be influential on Twitter, it is pertinent that such statements be recalled so that he doesn’t spread damaging words about Hive and its products; or give out negative vibes about the Community and what it stands for.
A closer look at his statement portrays a rash judgment on his part prior to making his own research, and this he also admits.
But that sounds like medicine after death, you know right?
However, I appreciate the fact that, in the long run, he was willing to go deeper to understand the mechanics involved, as well as to have engaging conversations with some Key players on Hive. This, I believe to a large extent, was fruitful in making him see the errors in his damaging statements, and making us understand the mechanics surrounding HBD better.
But, is he willing to get off his high horse to apologize for his unsound judgment?
Well, he says he owes no one an apology because... “a reply under my thread... 20%.... anonymous account... I just glanced through it... privacy... crypto scam...” blah blah blah!
You can listen to the audio if you’re interested in what he said.
However, no matter how much excuse he’d give, that is simply a “Fallacy of Hasty Generalization.” It is an error in reasoning, and he can continue keeping up with it.
Yea, I pointed that out. It wasn’t a sound judgment on his part, and this he isn’t willing to own up to it.
THE CONVERSATION WITH THEYCALLMEDAN
Just like I said earlier, I appreciate the fact that he was open to having a fruitful conversation with some key figures on Hive. Out of the three Twitter conversations he organized, I attended two of them: the first one which he had with Eric (anomadsoul) together with BrianofLondon who also gave wonderful insight, and the second one he had with Theycallmedan.
Both conversations were insightful, enriching and educative. I also believe that the fruits of the conversation were evident in Quinn’s assertion that Hive has a lot to offer because of its products and varied use cases. Although, he still has his reservations on the tokenomics of HBD.
For the sake of sharing those wonderful, insightful, enriching and educative input from Dan, I’d highlight four key points from Dan’s Conversation, which I term as “Wisdom from Dan.” From another perspective, this can also be seen as the Wisdom from the Hive Community, because Dan tries as much as possible to break down this wisdom established by the Hive Community.
SOME IMPORTANT CONCEPTS TO TAKE NOTE OF
- Hive Backed Dollar (HBD): It is a stable coin that resides on the base layer of Hive blockchain, and it is worth $1 of Hive. Each HBD created is a debt for Hive blockchain, and it is redeemable for $1 worth of HIVE converted via the 3.5 day window. There is also a HBD Stablizer to ensure that it maintains its peg of $1 worth of Hive.
- Annual Percentage Rate: It is the interest generated which is charged yearly on an amount loaned.
- Haircut Rule: This is a rule set in place to automatically stop the printing of HBD when the supply is too high. It is based on the market capitalization of HBD and Hive, and the ratio between them.
WISDOM FROM THEYCALLMEDAN
Here are some points to consider from Dan’s input:
THE POWER OF HIVE COMMUNITY
The beauty of HBD, the increase and decrease of the interest rate, the haircut rule, and other mechanics surrounding HBD point to the greatness of the Hive Community. Put differently, the decision to set the interest rate or hair cut rule was not carried out by a single entity or a centralized body, and imposed on the Community.
No! The decision was carried out by the Community through the top witnesses. Yes, the top witnesses become top witnesses because they are supported by the community; hence, the decision they take is for the community. If the community is against them or their position as top witnesses, they can be recalled.
The power that the Hive Community wields as a community has been proven to be greater than centralized body, as this is evident in the birth or “fork” of Hive, as well as its continuous maintenance and sustenance.
20% APR AND 30% HAIRCUT CAN BE CHANGED
At the present moment, the Annual Percentage Rate of Hive Backed Dollar (HBD) is 20%. Huge, right? Yeah, that’s why Andrew Quinn made such statement in utter disbelief...
Yet, it isn’t the case that the 20% APR will last for eternity. No! If the community deems it wise to reduce it to 15% or back to 12%, as it was in former times, it will be changed. The 20% isn’t set on stone.
Likewise, the 30% haircut rule can also be reduced to 25% or 20% if the Community deems it wise.
The community has the power to take certain decisions if they discover any harm.
HIVE KEEPS LEARNING AND GROWING
The Hive community has survived various hardships and challenges together, from the Hostile takeover by Justin Sun which resulted to the Birth or Fork of Hive, to the present day when we struggle with Marketing Hive. In all these moments, the Community has learnt to work on her mistakes, tighten all loose ends and come out stronger and better. The community keeps growing, and building various dApps because the Community is so confident that it has all it takes to give the world all it needs.
TRUSTING THE HIVE COMMUNITY
This was one of the best statements I heard from Dan today. Andrew Quinn gave his usual extreme case scenario to downplay Hive and HBD. But he forgot that Hive isn’t just a place where investors gamble or take risks with their money. No! You cannot speak about the worst-case scenarios and downplay all the great Hive Community, the dApps that are being built, all the amazing use cases of Hive. They are intertwined!
Quinn’s worst case scenario would come to play if Hive community is only made up of investors who are investing their money for APR and other perks. Then, they’ll be forced to flee without looking back when Hive and HBD are wrapped in that scenario.
But in our case, Hive is a Data Availability layer. It offers censorship resistance, decentralization and privacy/ownership of account. It also incentivizes holders to distribute the governance coin. Lots of decentralized applications, games, and social media platform, among others, are present on it, and many others are being developed. So yes, Hive has lots of use cases.
So, yes! Trust the Hive Community!
Hive is not only building dApps and Smart Contracts on the Blockchain, but Hive is also saving lives in physical communities! Hive is making great impact in the lives of school Children; the lives of Communities that lack water; helping families scale through financial difficulties, and much more.
So, yes! Trust Hive!
Let’s spread the word that Hive saves lives!
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I AM KSAM
I may not be your favourite author, but you can journey with me to help me develop my writing skills. I am always open to criticism, correction and learning 🥰.
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Well put, I didn’t get to listen to the audio yet but I’ll give it a look tomorrow if I can!
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That's fine
You can always listen to it anytime you're available for it.
Thank you for your comment
An excellent rundown of the situation around Mr. Quinn ... thank you!
Thanks for the rundown of events! I was curious on what would happen but haven't been able to actively follow up on recent events. Sucks they weren't willing to properly apologize but at least they are willing to learn!
This is an awesome post. And because it is such an awesome post and mentions Web3, I gave it a 100 percent upvote. To claim rewards for other posts like this, follow my curation trail on https://hive.vote.
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