Hive, possible 12% HBD APY?
I have update my witness node (although small, I am just trying to stay ahead) to 12% APY for HBD.
Today (or yesterday while I was sleeping) most witnesses updated their nodes and chose 10% as the APY for the HBD annual yield.
I had set my witness to 10% a few days before, just to stay ahead. And today I updated from 10% to 12% as other witness took the step I had taken before
It sounds a lot, but from 7% to 10% is an almost 50% increase, while 10% to 12% is an only 20% increase. Sounds dramatic, but it is less than the previous change.
My witness is so small it does not really matter, but I am trying to be proactive. I will follow Hive and HBD prices, hopefully the recent spike in the HBD yield does not affect Hive nor Hive Backed Dollars price negatively. Time will tell, and a bold decision needs active and swift management.
Such changes need the community to be aware and for discussions to happen. I bet there are people out there that understand much more about economics than me, so hope the word gets out.
For now, the increase seems to not have affected the price. Hopefully, by increasing the yield, it attracts DeFi investors and specially developers. 10% yearly is one of the highest yields in mostly any of the big DeFi protocol! So I think Hive is set on the right track to become more than just a social network that runs on the blockchain.
10% is good, but 12% is greed haha
May be, because HBD is backed by Hive it seems like an investment from all the community to attract investors, users and developers. My ceiling is 12% because there are a few witnesses on the top 20 that ser their nodes to 12%, but I am watching how the price reacts to judge myself.
The goal seems to be to attract Human Resources
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STOPTo support your work, I also upvoted your post!
Hard to know what the proper rate is. We will have to play with it.
Moving it up to 10% isnt going to make much difference overall with the amount of HBD that is out there. The same is likely true for 12%.
What we need to balance is the ability to generate a return for people who are hodling HBD in savings and the potential to get the velocity of money going. Right now, there is little to no commerce on #Hive so it also means nothing. Down the road, we want HBD to flow through the ecosystem, generating a strong economy.
For now we need to get as much HBD off exchanges as we can. That is likely the first step.
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thanks for this answer, I understand something more about HBD
https://twitter.com/taskmaster4450/status/1416805574768054280
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Here is list of top 20 witnesses and their APR. Interesting.
Seems that now it is more worth to hold HBD than HIVE in terms of percentages haha. Good, I like it.
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Not really, current Hive Power APR is ~3,3% but if you vote regularly, so should receive an additional >10% as curation rewards. But HBD is really interesting now, for sure.
I support this move!! 12% is a really good idea. I can't stop thinking about how good this will be over the next few years.
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sic! 🙏
That would be an investment in human resources to turn Hive into an interesting space for DeFi, I don't think it should be that high for many years, unless it proves to be very good for Hive, closing monitoring and discussion is necessary, so thanks!