RE: What is the Price of 20% APR on HBD Savings? .:. Late Night Blogging
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I think it is a good time to look at the % rate for HBD. If we look at the figures from the Stabilizer for just 2023 ytd, it has already inflated the supply of Hive by 2M according to the last stats and this will grow exponentially as we see the interest payments growing quickly too.
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I do understand that we are still "in the safe zone", but that doesn't mean that we should strangle HIVE and other tokens...
The amount of Hive created by conversions from HBD stablilizer isn't really a measurement of how much inflation HBD or HBD interest creates.
That's not to disagree that HBD APR needs to be reviewed (I think it should be lowered to something marginally better than USD inflation rate, a modest incentive to save in HBD), just that the above isn't really a measurement of the net inflationary impact of either HBD or HBD interest.
I presume the best measure would be the total interest paid, converted to Hive. But what % is actually converted I'm not sure.
It's impossible to fully track what is done because all HBD in an account is inherently mixed (unlike with a UTXO system like Bitcoin), so the best we can do is measure how much HBD is created by interest, measure the overall impact of HBD on inflation, and take one as a proportion of the other.
That makes sense. The overall impact we can see with HBD Interest converted to Hive.
3.5k HBD per day and growing.