Well it looks like the HBD interest rate is on the move. I look at the wallet today and see it is now 15%, which is a significant drop from the 20% it has been paying out for a while now.
Not going into any of the politics around this, people need to make their own opinions and choose their witness votes accordingly. for the record, LBI's policy for now will be to not get involved in witness or proposal voting, and we are looking after the funds of multiple investors.
Plans for HBD interest.
Initially, my plan was to pull an amount out of savings each week to go to the dividend pot equivalent to half of the interest. So, when interest was 20%, I would calculate using the following maths:
- HBD savings * 0.10 /52 = withdrawal.
It's not ideal, but given HBD interest is payed monthly, but we are planning to pay weekly dividends, it was the easiest way to go. This would have meant our HBD balance would still grow at 10%, and we would have a good chunk of funds to go to the weekly dividend.
However, as we can see, the interest can change, and it now has - for now anyway.
So, what I think we should do is drop how much we take out down to 5% for dividends.
On our current balance of just over $5K, that would mean we pull out 5 HBD per week, and 10 would stay in to compound. This would halve in the short run how much will go to the income distribution, but mean we are still growing the HBD balance through compounding a decent proportion of the yield.
Not going to say I am thrilled about this, as in the short term, this HBD interest was going to be the single biggest contributor to the dividends. But the focus of this LBI revamp is long term, and while dividends are nice, asset growth is built in to almost everything we do and HBD is no exception.
The good part is that this has happened before we resumed dividends, so its not like anyone's yield has been cut - just the potential yield.
While we are talking about income...
You may be wondering what our current income looks like. Well, so far this week, I have been tracking and will do the full update in the weekly update post. But here is a sneak peak of the week so far:
As you can see, HBD was the biggest chunk, and this will halve from next week in line with the above changes. EDS and DAB wallets are starting out tiny, but will become significant contributors in time. BXT and INCOME will be steady, and grow basically when I buy more of the tokens. LEO is a strange one. This does not include the leo.voter delegation rewards. It is only liquid payouts from posting and curation. And as you can see, we have only received one payout all week. I'm assuming that there is an issue somewhere with Hive Engine, as these are usually paid automatically each day.
Anyway, that shows you a sneak preview of how income will be tracked and divided up. LBI will be a growth token, that pays out a small weekly dividend, not an income token as such. Asset growth tis the main focus, but growing income over time is the secondary focus.
Thanks for reading, let me know your thoughts on the witnesses move to drop the HBD interest rate. Would love to hear both sides of the argument.
Cheers,
JK
@jk6276
If you enjoyed this post, and would like to read some more from LBI, check these out:
Why did LBI buy so much RUG? - just on this one, check out tomorrows update to see how this is going.
Posted Using InLeo Alpha
I appreciate you putting out this article, because this is the only way I was able to find out that the interest has been dropped -- against community input on this earlier in the year, without prior notice. Thank you for doing what others SHOULD HAVE DONE in informing the people. I will let the Spanish and German-speaking communities know, and that will also bring more attention to what you are doing.
@omarcitorojas -- Amigo mío, te digo esto para hacer correr la voz a la comunidad de habla hispana: sin previo aviso, y en contra de los deseos de muchos en la comunidad de Hive, los poderes fácticos han reducido el interés de HBD del 20 al 15 por ciento. Como esto afecta directamente a los proyectos que está realizando tu comunidad, te sugiero que se lo hagas saber a las personas que te rodean y hables con los Hivers poderosos que apoyan tus iniciativas al respecto. Además, recuerde que cada cuenta de Hive tiene 30 votos de testigos, y los 20 testigos principales determinan las tasas de interés de HBD y también de Hive Power. Podemos votar por quienes queremos como nuestros testigos, y así determinar quién está en ese top 20 que toma las decisiones.
@der-prophet -- Mein Freund, ich erzähle Ihnen dies, um es der deutschsprachigen Gemeinschaft mitzuteilen – ohne vorherige Ankündigung und gegen den Willen vieler in der Hive-Community haben die Verantwortlichen den HBD-Anteil von 20 auf 15 Prozent gesenkt. Da sich dies direkt auf Projekte auswirkt, die Ihre Gemeinde durchführt, schlage ich vor, dass Sie die Menschen um Sie herum darüber informieren, und diejenigen in Ihrer Gemeinde, die Initiativen auf Basis von HBD haben, möchten möglicherweise mit den mächtigen Hivers sprechen, die diese Initiativen unterstützen. Denken Sie auch daran, dass jedes Hive-Konto 30 Zeugenstimmen hat und die 20 besten Zeugen die Zinssätze für HBD und Hive Power bestimmen. Wir können dafür stimmen, wen wir als unsere Zeugen haben wollen, und so bestimmen, wer zu den Top 20 gehört, die die Entscheidungen treffen.
I had a bit of a look around before putting this post out, and couldn't find much recent talk about it - not that I really know where to go for HIVE politics these days.
I'm glad you found this post and can let your communities know what is happening.
It is a bit of a challenge to find out what is going on... I was actually looking for news stories for my newsletter collection on Fridays, and Hive News has been slow ... only to find that you had the news story of the week! If I were a news editor again at a newspaper, I'd put you up for a bonus!
If I hadn't just taken over running this project, I would not have know this was happening at all. It was only that I am keeping a close eye on the wallets and was checking our funds HBD position that I saw the change.
Hey. Do you use Peakd?
I do.
Okay. Have a look at the wallet. There, highlighted in green, is the number you're looking for. HBD savings portion will always indicate current APR.
Now look at the witnesses page. There you can see all the "signals" for each witness. Top 20, find the median, and there's our APR. Since the system is decentralized and designed to be flexible, one could almost predict change on the horizon. Some have been signaling lower rates for years. Whatever the rate is, any time someone is talking about that, it should always come with the words "subject to change." Always. Always. Always. Can't stress that enough. Noticed plenty leaving that out over the years.
Peakd will provide this information, accurately, and near real time.
If one witness makes a move, it's not that individual deciding for everyone. It takes everyone. So even those signaling 20% are contributing to the current rate of 15%.
Now, I know it's difficult to find information beyond that. Sometimes I stumble into the most random things that turn out to be somehow important, like this post, and especially the top comment:
https://peakd.com/hive-133987/@dalz/hive-inflation-for-july-2024-or-running-hot-for-a-second-months-in-a-row
Then lower down in the comments, you can see me recommending someone get the popcorn ready. You don't have to agree with my opinions and just know I mean well. Sometimes I forget my filter at home lol.
But pay special attention to that top comment and the responses.
Often, since there's so much backlash, at times, I personally believe it's best to make the move first, and answer later. Otherwise, making decisions become difficult, to the point of being paralyzed. If we can prevent a downward spiral, inaction would lead to much disapproval as well. Would you agree?
P.S. I found your comment via acidyo's post.
I do use PeakD, and I check my witnesses and the interest number fairly often ... but at my bank they send me a notice if they are going to just drop my interest five percent, so no, I'm not spot checking it every day. I will now, at least every week. I'll probably spot check my witnesses every week now, too. As a crypto investor across the market, that's harder than I need to work for everything else, and that's harder than I need to work with my USD even with the Federal Reserve jiggering with inflation as well. As a a best-selling author who dedicated a whole chapter to introduce readers to Hive, that also gives me great pause, because investors like STABILITY, and ADVANCED NOTICE.
In looking at your comment, and the comments overall, there is a little something being overlooked ... altcoin bear markets tend to run 2-2.5 years, because they lag Bitcoin, and Bitcoin bear markets run about 1.5-2 years. Hive is no exception to the rule. Hive didn't have an ETF come in early, but it does tend to track Bitcoin's downs even harder than its ups, and the cycle uppity-ups are not predicted to start until OCTOBER. I wish that the people making decisions about the chain understood just that. It would save a lot of trouble. Most altcoins are not going to outperform Bitcoin, and Bitcoin is ranging in a bound. Hive is probably going to be range-bound where it is until Bitcoin breaks out, too, if the last cycle was any indication.
Here's something else that would save a lot of trouble: Hive started in a world crisis and was a lifeline for MANY. That is the legacy of how Hive formed its community, and it would be wonderful if the people in those positions stopped being cast as the enemy of all good. Instead of coming to people and saying, in at least Hive's top three languages, "This is what is going on, and we would like you to change this behavior so we can stabilize X," stuff gets changed and the rest of us have to play catch up. I go into Chain News every week. I will subscribe to Hive Statistics just to be able to keep up better, but that still means that everyone who doesn't know to do that can readily get a sense of what and why. That does not engender trust, at all.
Furthermore, I gather from you putting "The Hive Community" in quotes that you don't think of it as a real thing. Well, a lot of us were sold that it was a community different from where we come from, where oligarchs do their thing and we like it or lump it. If we are a self-governing community, then we need the information to govern ourselves. If we're not, then what are we? Everyone is going to come up with their own answer if the idea from the top is "We're going to do what we think is best, we don't think you're even intelligent enough to understand so we're not giving you any input or a chance to help us right things before we act, and you're going to just stay quiet and not find out most of the time, and when you do find out, you're not supposed to take action toward some accountability on our part to you."
I love popcorn, @nonameslefttouse. I like it with cayenne and black pepper, butter and salt ... and I am generous with the pepper when put to it. Now I would rather NOT be in the position of being the first to share big news in Hive's three languages and advising them on how governance works because we have nothing else to work with when coming from behind. I would love for Chain News to have the news, and I truly appreciate the witnesses who make it their business to keep everybody up on what they are doing, who actually act like this is a WE thing, not an "us who know and have the power and information versus them."
But hey -- if we gotta have popcorn because this is how we are going to do things, I'll be here with the pepper as long as I think Hive, and all its peoples, are worth it. There are many, many people, across dozens of countries, that I know and love here. For some of them, Hive is literally LIFE. I have personally helped save people's lives through this platform. That matters to me, and anything that changes that matters to me. Now, if we are all actually trying to do the same thing, but it is miscommunication, great: that can be fixed. The powers that be can stop having us play catch up, any time they want. We should not have to randomly be bumping into changes that affect everyone if we all intend to do the best by everyone and respect Hivers' right to informed self-governance.
Thank you for this tip @deenanndmathews
Personally, I think it's right that the interest rate is finally going down. At 20%, it is far too high. In my opinion, it is still far too high.
I may share my thoughts on this on my blog tomorrow or Sunday.
Although I'm not involved in any way with LBI, I like to read your content and keep up to date, I often learn things by observing how you, ray or silver run the different projects. So for my part, don't think you write to nothing, at least I do, I read you haha.
EDIT: Fuck it, @empo.voter is now following lbi-token posts. Expect a upvote from time to time.
Have a nice day JK. Best of luck.
I appreciate you dropping in to let me know your seeing these posts. I'm as guilty as anyone of reading something, and not dropping any comments. Working to fix that and engage better now I'm running LBI.
PWR is at the top of my list for HIVE projects I want to put LBI funds into. Feels like the best way these days would be funds in the LP?
IMHO the best is to delegate some HIVE power and DCA into the pool. If u go directly into the pool you have to buy the PWR first (well both ways have pros and cons), delegating is safe while buying directly is faster
Cool - I'll work on a plan to get LBI into it. Really like what you are doing with PWR and it is good for there to be more ways to build into investments on HIVE.
Well since a good chunk of lbi is in eds, spi etc. why not eds dollars? Don't they supposedly give a better apr or something?
Yes.
We got a whole seperate wallet for the EDS stuff - @lbi-eds
I support your decision. The fact that you have tagged me recently makes me feel like I am one of the only ones that still even cares about LBI. I definitely do and I am really excited about the positive changes you have been making.
I think most of the rich list may not even know yet that this relaunch has happened. It feels like a lot of the LBI token holders are either inactive, or totally disengaged. Had a comment from @preparedwombat the other day along those lines.
I'm glad to have you around @bozz, so it does not feel like I'm talking to myself. At the end of the day, LBI has just over $20K USD worth of assets to play with, and that can be turned into a nice little earner with time, effort and patience.
I'm just happy to see it is moving forward. Too many projects are dying during this bear.
Why wouldn't someone just keep the funds themselves?
Which funds are you referring to?
I noticed that my accrued interest was 10 and dropped to 8 yesterday. So the change in the month impacts also the passed days. A bank would not do that in her software but it is only 2 HBD that is see missing ;)