How would it be sustainable? Would not everybody just dump there HBD?
Sorry im not 100% into the economics of hive and hbd. But like tera they needed a lot of money to topping up there treasury.
If you have some good links and infos for HBD, i would appreciate it.
Terra is a bit different because they have a fixed treasury that came from a premine. Hive is inflationary by design.
Arbitrarily high interest paid on arbitrarily high savings would not be sustainable, but this isn't that.
And terra is kind of abusive from top holders. They start buy other cryptos in billions.
I would not wonder if they bust luna with it.
It's a little sketchy but supposedly a foundation that will benefit the chain. We will see.
I like the decentralized model better in most cases. For example, we could also buy other assets to serve as secondary backing/stabilizing, but it would have to be a proposal approved through DHF, with suitable safeguards (multisig, limited budget, etc.). A foundation basically run by one guy, eh, could work, but...
I agree. But that's more theory.
If the chain itself could control wallets, yes that would be good. But I don't know any way this could work. And if billions are controlled by a group of people, I mean, we are in crypto and know it better.
I think Luna Itself will blow up to an unstable tether version. So if big enough, it could start hammering things to zero ( not zero, but damage the market).
If peg from TUSD should not hold, we see panic.
If peg holds and bear market happens, Luna dies because of inflation.
I mean we know it better from hive.
We could know all agree nobody sells up hive hits 100$.
creating a bazillion HBD ( + 20% hype).
creating protocols/pools for trading HBD to other stable coins, supporting the peg with DAO fund.
At some point, funds are not enough to support the peg and it breaks.
I think this happens to terra this cycle.
Btw, do you know a way to short it without risking the collateral? :D
That may be the goal. After all, Tether has been very successful.
sure I think so too.
The problem I see is the unstable part. USDT has now a MC of 16,7B. If this shit starts winning like wave stablecoin, I'm really sure we see panic.
And the bigger it becomes, the bigger becomes the risk.
if some % comes into xxx- Millions of Dollar, we see the ponzi will break :D
I mean its the best magic trick ever.
Boost your coin, make a algo stable coin on it and start pushing the price with your printed dollars.
print more dollars and exit scam into other cryptos :D
It is an additional inflation to the normal Hive inflation. In theory they could dump their HBD much like they can now. Also in theory, many may buy it to take advantage of it.
If it doesn't work out, it can easily be scaled back. It is a witness parameter and requires no changes to the blockchain, witnesses just change their parameters.
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