After the recent dump, the Hive Debt is now above 10% for the first time in a while. This is a major milestone, becouse it used to be the limit when the HBD deppeg happens.
After the lasf Hardfork it is lifted to 30%.
Looking back I'm wondering was this a proper deccission, having in mind the amount of HBD we are printing from the DHF.
Can you write a more detailed post on this, please?
Start with the assumption that your reader don't even know what HBD is, and therefore has no idea about Hive debt and its impact.
I wrote this a while ago ... maybe it is what you looking for?
https://peakd.com/hive-167922/@dalz/everything-you-need-to-know-about-the-hbd-haircut-rule-and-the-latest-updates-or-the-biggest-risk-for-the-hbd-price
thank you
This is something really worrying for HBD
This can lead to even more Hive inflation, downside of algorithmic stablecoin. Good when price is high, bad when price is low.
This will be fixed in HF28 coming in a few months
What does the debt really mean when so much HBD is just going to sit in the Hive Fund? It's not going to get allocated to proposals or anything.
HBD in the DHF doesn't actually count towards the debt ratio, since it's locked away until payouts happen only then does the paid out HBD get counted.
Oh, that's interesting to know.
For the DHF, is it the Return Proposal or the HBD Stabilizer that sets the threshold for what gets funded?
The return
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