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RE: Week through Adrian's Lenses (31 August - 6 September 2024)
@gadrian75
(edited)The main thing is that you cant call the Hive virtual supply = Hive Marketcap, as that is not what it is.
That's true. If we want to be fair, the debt ratio is something we calculate at internal level of the blockchain as a safety measure. It doesn't really need to meet any external definition or to apply to Hive market cap, unless it becomes detrimental to the safety of the chain. It can be misleading using virtual supply instead of Hive supply, but it isn't necessarily unsafe (it can become at a certain point, though).
0.00002697 BEE
I agree and think there are 2 topics here. The ratios and calculations used by Hive Blockchain and then real world definitions of debt level and market cap. You would never include debt in market cap or in a debt ratio.. that is just ridiculous.
In reality, Hive has a dynamic debt ratio due to the way it's calculated (whether that is good or bad and needed is another conversation).
You can't just say, this is what I believe a debt ratio is and this is the calculation! A debt ratio and market cap are clearly defined calculations, you can't claim your own 😆
For digital assets you may say it's fully diluted market cap, but as HBD is DEBT, you can't even call it that. It is what it is.
Regarding Hive using this dynamic formula, rather than a fixed debt level ratio has huge consequences which many are not aware but seems the core Devs know very well, Hive will fully collapse defending the peg the same as Terra Luna. They need to reduce the debt ratio back to the previous dynamic "10%" ratio at least or put the real 30% ratio thst isnt dynamic!
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