As you are probably aware, there is approximately 83 million Hive that is supposed to be released over time into the DHF for the purpose of blockchain development.
@howo recently created a post to start the discussion how we should proceed:
Debate: at which rate should the non-airdropped stake be converted to HBD ?
Here is a little math to illustrate the impact from his post:
Currently the fund receives more or less 1752 additional hbd per day from the inflation
83 370 205 hive needs to be converted which equals to roughly 20 258 000 USDI will assume that HBD = 1$ because it's easier
We convert on a per day basis, so every day a percentage of that money will be converted to HBD and made available.
For instance, if we were to convert all of it over a period of 5 years it would add
20258000/(365*5) = 11 100 HBD per day to the dao, which means 111 more per day that are available.
This means, if the conversion would take place over a period of 5 years, the DHF would have additional 111 HBD available per day, on top of 1'750 HBD from inflation. While it doesn't seem like a lot it can stack up quickly.
From the comment section:
@whatsup takes the view from a start-up perspective, where it can be prudent to spend rather liberally on many initiatives and see what sticks in order to accelerate development and growth.
@themarkymark proposes a variable approach, in that witnesses would be able to adjust the daily withdrawal limit from the DHF within a narrow band without having to wait for a hard fork. The conversion rate into the DHF remains stable.
My opinion:
While Whatsup's position sounds a little scary, DHF spending has been rather tight and deliberate. At least up until now there is no reason to believe that funds are going to be wasted recklessly.
I will counter, that many young companies with a surplus of cash, tend to splurge with little to show for and try to paper over cracks with money. Case in point: the company that tried to develop legacy Hive and never managed to achieve their intended goals, even though they had plenty of funds.
Marky's position is a happy medium that offers flexibility when an opportunity arises and the next hard fork is 6 months out.
My preference is to start out with a conversion period longer than 5 years and revisit it with the next hard fork.
We are not running into constraints yet and with the next fork we will have a better understanding of what it takes in infrastructure and basic development spending to keep the chain running and up to date.
So far we have:
- @anyx infrastructure at 15 HBD/day
- @blocktrades server cluster + development at 1'000 HBD/day
- @howo core blockchain development at 275 HBD/day
- @netuoso core blockchain development at 275 HBD/day
These cots add up to 1'565 HBD/day. This is an inflated rate because the proposal by Blocktrades, Image Server Cluster development and maintenance, includes much more than basic infrastructure. Blocktrades will issue a new proposal that breaks out infrastructure cost at a significantly lower rate per day.
If you want to share your opinion on this topic, go to: Debate: at which rate should the non-airdropped stake be converted to HBD ? and check out the post and comments.
Vote for my witness: @blue-witness
EDIT 1: clarified Marky's position. For reference see comments.
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Just to be clear, I wasn’t proposing a variable conversion rate, what I was suggesting is the daily limit (currently 1%) be a witness parameter.
The main reason is security. If we converted 100% today for example, 1% would be a large amount of money potentially at risk. This is the concern with the conversion as well, the faster we convert the more we have sitting at risk.
We want enough funds so we don’t suffocate progress but not enough we have a large risk to worry about.
The DHF will already have a large organic growth.
By allowing a variable witness parameter for how much of the DHF can be extracted daily, we can adjust our risk based on the balance of the DHF. If the balance is high, we can reduce the daily limit. If it goes low and funds are being throttled, we can make an educated decision to allow more funds to be used daily.
That's how I understood it and was hoping to express it that way:
The rate of conversion I assumed would be fixed. The DHF has no keys so the risk on the account is very low. The risk is how much funding can be extracted on a daily basis. This is where a variable daily limit (currently fixed at 1% of total DHF) would come in handy.
Ok, I missed that distinction. My focus was on the conversion into the DHF only. I will clarify that.
I think anything 5 years or longer is a safe bet. We can adjust the daily withdrawal limit to protect against allowing funds to be drained too quickly. Making this a witness parameter would allow us to adapt as things change in the future based on current proposals.
We are currently using 1565 HBD/day, but without the Steemit Inc sugar daddy, we will need more funding to create a healthy development ecosystem to encourage and support innovation.
The Steem DAO never had to support infrastructure, blockchain development, and marketing in the past. It was only used for relatively small projects. That will likely change as we make our own future now.
Why are they still getting 10% of the inflation, they have 80m hive for god's sake.
Released over 5 years, that 80 million comes down to an extra 111 HBD per day, versus the 1750 HBD per day coming from inflation.
I had issues with the DHF taking from the inflation pool during Stinc times. Now we need it to keep the lights on.
I agree that the lights need to stay on.
I agree that some continuing projects need to continue, but I question whether we need to bulk up something that we could get by without, right now.
We have a working platform.
It has a history of lying to us to profit the few.
Where, exactly, is this bus being driven that it needs >2000usd a day for the next, what, infinity?
We've ran off >1.5 million people by paying the few insiders and giving nothing to the real people that came here to share their attention with us.
Giving authors, and curators, that 10% will not fix things, but neither will the status quo.
Just come play poker Hubby Love 😁 ❤️
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