I do understand healthy skepticism, and that a 20% apr is not long term sustainable. That fact does not make HBD a scam.
Crypto in general and hive in specific are emerging market places and economies that in my opinion CAN support higher rates of expansion and inflation than are traditionally seen in established financial markets.
Our interest rates WILL need to be adjusted, but again that does not make hbd a scam... A difference between hive/hbd and other failed attempts at an algo stablecoin is that we do have tools at our disposal to adjust this in various ways.
The mechanics are solid, and HBD is at a low % of the HIVE market cap. There is no negative that I can see to the current interest rates as it helps to get HBD into the markets, incentivizes holding the token, and helps to attract external users that want access to that apr on a more stable asset.
Currently my votes support a majority of witnesses that are targeting 20%, but you can be sure i will be adjusting as hbd gets closer to the haircut rule.
Why are you opposed to the current rate and what would you prefer?
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As for why I don't support it. It's subjective, but I feel that a 20% APR is going to surpass the haircut rule relatively quickly & it'll drive the price of Hive or HBD down.
I also have my reservations about interest in general, but that's too subjective to matter.
Posted via D.Buzz
Yeah, I totally believe it's not a scam, and I totally believe if the 20% APR started to cause problems in the future, it'll get toned down to a lower more manageable APR.
I'm saying, normally if you don't know how it works, you'll think that number is absurd, won't you?
Posted via D.Buzz
Yes, I am generally skeptical of a high apr and immediately look for the risk factors if it is something I am considering parking funds in.
If it isn't something I want to explore though I just keep my distance and try not to make assumptions!
If we don't see a sudden substantial increase in adoption of hive I think we have a couple of years runway at 20% before we approach the haircut again... but that is just my opinion.
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Posted via D.Buzz
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