3% P.A. on HBD ! Great News ?
I just read this post from @ats-david and a similar post from @themarkymark about how interest is now being paid on Hive backed dollars.
Two things immediately sprang to mind.
Firstly, I was under the impression that mechanisms were in place to keep HBD pegged at $1 and there is a constant battle to keep it there. Surely giving interest on holdings will only encourage people to buy more on the markets as some sort of stable investment vehicle that does not require you to perform any sort of task on the chain. Demand creates price rises and thus it appears like some form of self-sabotage!
Secondly, I may be wrong but I don't recall seeing any huge community discussions about this. It just appears to have materialised and been implemented out of thin air. Surely as a fundamental change to the blockchain's economics, there should have been debate and discussion. Where exactly is this 3% coming from? I did see one answer to this that said:-
The blockchain will issue it
Regardless of what my opinion is of this, I feel a little uncomfortable about the way it has been implemented.
What are your thoughts please? Good news or bad?
@spectrumecons, I would love to hear your thoughts on this please!
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https://twitter.com/CuthbertNathen/status/1366680027174068227
I'd like it to be higher to compete with some of the offerings elsewhere.
Check out @smooth's recent posts.
Thanks for that! My opinion is that interest makes crypto more attractive to the 'everyman', especially with the robbing banks barely giving you anything, but this seemed to come out of the blue!
Will go and check @smooth now. I do like him. Straight up and transparent witness :-)
Hope the sangrias are still flowing with optimistic sunshine mate :-)
Yeah the setting, available since the beginning, has never been tried. Seeing the landscape at present though I think it's right to give it a shot.
Lockdown lifted today, I'm off to the pub for 30 mins after work before it shuts, cheers!
I think we can increase it once we see some degree of stability at $1. It may be that the current resources from the DAO aren't yet enough to get there but those are increasing at a significant rate so this can be addressed in time (hard fork methods are on the table longer term too, but we have to work with what we have for now).
This is really the first I am hearing about it as well, so I can't really speak to any of your questions. Did you jump over to the proposals area and see if it was in there. I think there a ton of proposals over there that many of us don't know about and they are probably getting funded.
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It's hard to keep on top of everything that's going off mate. I need to spend more time taking an interest in the proposals and making more effort to understand some of them!
Interesting development though.
Hope you and the good lady are doing well fella :-)
Yeah, I am with you. I spend way too little time looking at the proposals. I was shocked to see just how many there are the other day when I was looking.
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Nice dear
The stability proposals are working to improve the pegging to $1. A step in the right direction but perhaps not quite sufficient yet.
However, on the matter of interest I don't think it makes much difference to any peg weakness. If HBD is trading at $1.50 (or $10), someone buying isn't buying for the 3% interest (that's 3 cents in a year!). It's really only when it is at or very close to $1 that 3% is a significant incentive.