The Hive blockchain fight with inflation downing HBD APR to 10%

In the fight against inflation and depreciation of the base token, the Hive blockchain through its Consensus witnesses lowered the HBD APR to 10%. Will this help? Time will tell, but I think that's not enough. In my opinion the DHF funding is one of the culprits for falling HIVE price. Looking at the Daily funding that 540 HBD + 415 HBD + 95 HBD = 1050 HBD and additional 12000 HBD for the HBD Stabilizer. The big impact comes from HBD Stabilizer, but I am not sure how exactly that affects the inflation or something else. Maybe some of you understand this better, so it would be great if you can add some comments on it.

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For me as I hold a good stash in the HBD Savings, I feel that reducing the HBD APR from previous levels to 10% is a step toward making HBD less attractive as a high yield savings vehicle. During periods of elevated APR, many users like myself were incentivized to invest and even convert HIVE into HBD and lock it in savings, earning returns that were difficult to find elsewhere in the crypto market. While this helped increase HBD demand, it also increased the protocol's interest obligations over time.

With a 10% APR, the incentive is still attractive compared to traditional finance, but it is no longer exceptional within the cryptocurrency space where you can find similar or better deals with established and fiat guaranteed stables. This could slow the growth of HBD savings and reduce the rate at which new HBD is distributed as interest. Whether this reduction will be meaningful depends on overall market conditions and user behavior.

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The DHF is another topic that often sparks debate within the Hive community. On one hand, it finances development, infrastructure, marketing and community initiatives that would otherwise struggle to find funding. Many of the tools and applications that make Hive usable today exist because of the DHF. On the other hand, continuous funding also means a continuous stream of HBD entering circulation. If recipients immediately convert their HBD into HIVE and then sell that HIVE on the market to cover expenses, the result can create persistent selling pressure. And in the same time some DHF funded projects simply don't bring financial value in this ecosystem, something that we need as we cannot live out of infrastructure and utility tools.

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Lowering the HBD APR alone to 10% is unlikely to reverse HIVE's price trend. Token value depends on a combination of supply, demand, network activity and broader crypto market sentiment. Inflation management is only one piece of a much larger puzzle. The real solution may require an approach that combines sustainable rewards, efficient treasury spending and continued growth in real-world usage of the Hive ecosystem. We need to have more use through which we can get value from outside and bring it inside. Capturing web2 revenue streams and use them as buying pressure for HIVE assets is the way I believe we should all think about it. Now how to achieve and execute that... that's the million dollar question.

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6 comments

That’s the million dollar question.

We need to answer the billion dollar question 😅
That would be a 40x on price and it would put it around the top 50 crypto currencies. It’s insane to me seeing hive behind so many shitcoins that are completely useless.

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The HBD interest should be lowered to 5% 10% is unsustainable.

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(edited)

#bilpcoin truth # The Cornered Architect: On the Futility of Flight and the Inevitability of Reckoning

The Hour of the Mirror

There comes a moment in every tragedy when the protagonist can no longer outrun the consequences of their own design. The stage grows smaller. The shadows thin. The exits, one by one, are sealed.

That moment is now.

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There is nowhere to run.

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Own up to what you have done. Or don't. The ledger will remember either way.

Keep doing wrong. Or stop. The stone is already carved.

Run. Or stay. There is nowhere to go.

We have done our part. We have exposed the truth. We have let the light in. The rest is up to you—and to the mathematics that will outlast us all.

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At Bilpcoin, we do not fight for attention. We fight for accountability.


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If you are reading this on Blurt.blog, you are early. Like discovering crypto in its beginning. And best of all—there is no downvote button. What you earn, you keep. No sabotage. No fear. Just freedom.

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I am also lost in space

Why do i see that post when searching "space" in the peakd search bar?

However, enjoy the sound.

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lol wrong track:

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@behiver, siempre interesante leer sobre HIVE. Hay una movida interesante en desarrollo últimamente, y posts como este ayudan a entender el panorama general. Seguí así que este tipo de contenido es el que hace crecer la comunidad.

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