So if the HBD price is high I do effectively earn more if I sell the HBD to Hive?
I thought that payouts are adjusted based on market prices....
So they are not or how does this process work exactly?
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Assuming the price of HBD will eventually drop back down to $1 (which it will) then yes.
The value of Hive is determined through oracles via the witness price feed. The average price of Hive over 3 days is the official price of Hive. This price of Hive is then used to determine how much HBD get printed. The higher in value witnesses oracles claim the price of Hive is, the more HBD we print to match half of author rewards to HBD.
The network assumes HBD is $1, so when HBD trades higher than $1 that's just free money and you should dump it. Conversely, when HBD is under $1 you may want to wait for value to pop back up.
Ah okay, now I understand, thank you very much for your help!
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