RE: Is 10% APR on HBD Savings Too High?

Bascially, the interests on HBD are coming in addition to the natural inflation of hive. The problem is that with low hive prices, these interests represent a lot of hive tokens that are minted out of thin air.

Let's say there are 1'000'000 HBD in savings. This means that 100'000 are minted per year. Which is the equivalent of about 2 million Hive at 0.05 cents if my calculation is correct. By reducing the interest rate, the number of minted hive is reduced accordingly. On the other hand, having low interest rates, encourages people who hold hbd to swap them for hive and thereby really creating the inflation. As long as the HBD is in HBD, it doesn't affect hive inflation but once it's converted it does. So high interest rates means, potential higher future inflation. So there is no perfect solution.