RE: HBD: The "Safe" Stablecoin?

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The amount of inflation generated by HBD interest is very small compared to other sources of inflation in Hive. There's a couple of reasons for that: 1) HBD total supply is effectively limited to 10% of Hive marketcap and 2) most of that HBD is held on exchanges and in the DHF (i.e. not in savings account where it can receive interest payments).



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Do you think its is important, just for optics to new investors, to have the % of interest with the savings wallet of HBD to hold steady at a consistent % at least annually to not confuse new investors. If that makes sense. Just wanted your input as I'm ignorant on a lot of financial matters

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Do you think its is important, just for optics to new investors, to have the % of interest with the savings wallet of HBD to hold steady at a consistent % at least annually to not confuse new investors. If that makes sense. Just wanted your input as I'm ignorant on a lot of financial matters @blocktrades

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It's a judgement call. There's value to consistency. There's also value in flexibility. If the USD starts to inflate heavily, it will be better to be able adjust more regularly.

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How is the market cap limited to 10% of Hive? Is that because hbd is only created by 50% of the rewards and there is no other way for it to be created? I thought in HF25 we can now exchange hive for hbd, is there a mechanism in the exchange process to limit supply?

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The blockchain stops producing HBD if the value of it reaches 10% of that of Hive.

It will pay out in liquid Hive until the percentage drops below 10%.

Posted Using LeoFinance Beta

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Makes sense, by the sound of it, everything has been thought through quite thoroughly, which is great, gives me confidence

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