Me. I do see that many problems can arise, but am not competent to devise preferable strategies.
@edicted's bank account proposal looks like replacing the Fed to me.
I like it. If that is how the HBD is deployed from the DAO, I think that would only benefit Hive, both the token and the platform, through the beneficial economic activity that would result - but I admit I clearly do not grasp the potential consequences, and reckon I'm wrong.
Consider the fact that HBD is a debt instrument redeemable for exactly one USD worth of HIVE tokens in a process of conversion. If too many HBD are printed in a short time, that will very quickly crash the price of HIVE and as it does that also that of HBD because the convertibility of HBD ends when its market cap exceeds 20% that of all the coins put together. If the DAO releases HBD too quickly during a bull market, then it could totally crash the price.
I think the DAO should start issuing HIVE instead when the market cap of HBD approaches some ceiling as a percentage of the market cap of the virtual supply of HIVE.
I'll try to rub my two brain cells together against this information to generate the rude grasp of these facts I am capable of.
Thanks for the simple explanation.
I’m sorry if couldn’t explain it better. It is indeed a bit complicated.
It is the simplest explanation that is best suited to me. Since I feel I understood it, it was admirably simple. It is those that can distill a complex matter into a simple explanation that best understand it.