It comes from inflation that is being applied to HBD.
why not 30 % or 40% ?
That is what the consensus on the Witnesses came in at. They could have set it higher (still can) if the all agree.
For now, I believe the idea is to put it at the upper range of the stablecoin ROI market. We have the increase in haircut with the next hard fork which might help also.
I hope the next increase is tied to some time locked vault system. Maybe 1 year for 25% or 30% return.
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I didn't phrase it properly. I meant how did the witnesses reach that consensus because some could have said they prefer 19% or 21%. Anyway I understand the main gist of it :)
My guess is because that was what UST was paying through Anchor. I have no hard facts to cite but my view is they looked to match that, which subsequently dropped.
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