Yep. Say I make an average of $10 per post (after curation) at these prices. The blockchain would give me 5 HBD and $5 worth of Hive. Already, this thinking is backwards. The blockchain doesn't pay out in dollars; it pays out in Hive.
Starting over
Say I make an average of 10 Hive per post (after curation). The blockchain would give me 5 Hive (powered up) plus 5 more Hive worth of HBD. If one Hive happened to be worth $10 or something crazy like that, the blockchain would award me 50 HBD. At these prices (25 cents) I'd only get 1.25 HBD.
So yeah, higher Hive price def translates to more HBD being printed. The interesting thing here is that the blockchain doesn't actually know how much Hive is worth, so we have to trust the witness feed. They act as trusted oracles for the blockchain and tell it how much Hive is worth. If they all decided to lie and say Hive was worth $10 a coin we'd start printing a ton of HBD out of thin air.
HBD is a very undervalued asset because the peg isn't stable enough.
IMO we really need to let people create HBD just like you can create DAI using Ethereum and MakerDAO smart-contracts.
Basically you'd just be able to create HBD out of thin air if you had collateral in your bank account, but then you wouldn't be able to withdraw that collateral until you pay back the loan you took out.
This would increase the peg of HBD by a huge factor.
It would also lock up a bunch of liquid coins in DeFi contracts and theoretically increase the price of Hive.
My thought was to set up an account that let you send it hive and it return hbd, or vice versa, but they say there is an attack that the small market cap allows to be too cheap to do that without somebody being tempted to attack it.
Same reason conversion is only one way.
Now that stinc isn't running anything, I guess we can do whatever the consensus says.
Bring on the experiments.
No one... but if someone prototypes the functionality and shows how well it works the witnesses have a way higher chance of merging the code into Hive.
Yep. Say I make an average of $10 per post (after curation) at these prices. The blockchain would give me 5 HBD and $5 worth of Hive. Already, this thinking is backwards. The blockchain doesn't pay out in dollars; it pays out in Hive.
Starting over
Say I make an average of 10 Hive per post (after curation). The blockchain would give me 5 Hive (powered up) plus 5 more Hive worth of HBD. If one Hive happened to be worth $10 or something crazy like that, the blockchain would award me 50 HBD. At these prices (25 cents) I'd only get 1.25 HBD.
So yeah, higher Hive price def translates to more HBD being printed. The interesting thing here is that the blockchain doesn't actually know how much Hive is worth, so we have to trust the witness feed. They act as trusted oracles for the blockchain and tell it how much Hive is worth. If they all decided to lie and say Hive was worth $10 a coin we'd start printing a ton of HBD out of thin air.
Hmmm, if we were trying to get enough hbd out there to actually attract trade in it, that might not be a bad hack.
The trouble I see with hbd is nobody is holding it as a dollar and using it to buy stuff.
I mean, I do, but not all of us, for sure.
HBD is a very undervalued asset because the peg isn't stable enough.
IMO we really need to let people create HBD just like you can create DAI using Ethereum and MakerDAO smart-contracts.
Basically you'd just be able to create HBD out of thin air if you had collateral in your bank account, but then you wouldn't be able to withdraw that collateral until you pay back the loan you took out.
This would increase the peg of HBD by a huge factor.
It would also lock up a bunch of liquid coins in DeFi contracts and theoretically increase the price of Hive.
My thought was to set up an account that let you send it hive and it return hbd, or vice versa, but they say there is an attack that the small market cap allows to be too cheap to do that without somebody being tempted to attack it.
Same reason conversion is only one way.
Now that stinc isn't running anything, I guess we can do whatever the consensus says.
Bring on the experiments.
We can probably test out a centralized token that does the same thing pretty easy. Wouldn't have to ask permission to implement it.
Who wants a centralized token?
No one... but if someone prototypes the functionality and shows how well it works the witnesses have a way higher chance of merging the code into Hive.