RE: HBD: The "Safe" Stablecoin?
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I still don’t know if HBD paid in interest comes out of thin air, or if it is subtracted from the reward pool and paid out to savers.
It is just created and is separate from the rest of the issuance schedule. It has been there from almost the beginning of Steem, initially 10% APR, but it was largely ignored after witnesses set the interest to 0 because SBD was overpriced, and then never bothered to increase it again when it went below.
Even being outside of the normal inflation schedule, it is an extremely small source of inflation, there is no reason to expect it to become a large source of inflation, and the rate can be managed downwards again if it ever looks like it was somehow a problem.
If it becomes a lot more, than it means we have a major success on our hands. There would have to be a ton of HBD created and entered into savings.
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