As Hive dips lower, I don’t see how it makes any sense for HBD APR to remain so high. Just my opinion, if HBD rate stats around 20% while Hive keeps going lower it’s not gonna end well. Market rates need to adjust. Otherwise the pressure on Hive just gets ridiculous and other problems will appear.
Well, the haircut is for that very purpose, and the HBD rate was only ~1/3 of where it triggered the haircut. Cutting the rate now is going to cause some folks to dump HBD for better returns elsewhere, and some folks won't park their stake in HBD for the return and instead financialize curation, which I have never yet found a beneficial effect on curation, since it substitutes pecuniary interest in a post for anything to do with the content of the post. Farming curation rewards is not promoting good content, because reward farmers have several metrics that they attend to, such as when they vote, and how much they vote, and they base what they vote for on maximizing curation rewards, which generally favors posts that are already highly rewarded by ppl pandering to whales.
It is because curation rewards so derange curation that I am so in favor of good interest on HBD, because that outcompetes curation rewards for ROI and that improves the quality of content on Hive.
It needed to be done.
Why?
As Hive dips lower, I don’t see how it makes any sense for HBD APR to remain so high. Just my opinion, if HBD rate stats around 20% while Hive keeps going lower it’s not gonna end well. Market rates need to adjust. Otherwise the pressure on Hive just gets ridiculous and other problems will appear.
Well, the haircut is for that very purpose, and the HBD rate was only ~1/3 of where it triggered the haircut. Cutting the rate now is going to cause some folks to dump HBD for better returns elsewhere, and some folks won't park their stake in HBD for the return and instead financialize curation, which I have never yet found a beneficial effect on curation, since it substitutes pecuniary interest in a post for anything to do with the content of the post. Farming curation rewards is not promoting good content, because reward farmers have several metrics that they attend to, such as when they vote, and how much they vote, and they base what they vote for on maximizing curation rewards, which generally favors posts that are already highly rewarded by ppl pandering to whales.
It is because curation rewards so derange curation that I am so in favor of good interest on HBD, because that outcompetes curation rewards for ROI and that improves the quality of content on Hive.