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RE: HIVE inflation reduction: thoughts on the next hard fork

in #witness5 years ago (edited)

The HBD algorithmic peg is also a big problem, during a bear market, STEEM/HIVE had an effective inflation rate of over 20% p.a. due to how the peg is implemented, which is insane and unsustainable. It's even still not possible to convert HIVE to HBD, when HBD is greater than $1. The HBD peg implementation allows a debt ratio of 10%, which is way too high in my opinion.

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The witnesses could take action to mitigate the effects of HBD conversions by modifying the interest paid on holding hive dollars or by changing the bias factor that impacts the conversions directly (under certain market conditions). As stakeholders of hive we are in part to blame for not holding them accountable for their hands-off aproach.