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RE: TRIBE Token Works: Delegations
Wait, so you want us to take hive from our 20% savings account to buy a token we don't really need for anything to only make 15% with it? Why would anyone who understands math do this? What is this token going to do you couldn't do with Hive or HBD anyway?
0.00007083 BEE
Hello. Thank you for sharing your thoughts and questions. First of all, the mentioned 15% APR is the minimum rate set. Also, as mentioned above, "Our goal in this study is to provide a reference point for returns for projects and users working on Cent delegation and to start/intensify competition among businesses. Currently, Cent can generate approximately 25-27% income through staking and voting."
As for the line of thought "Why bother with a riskier instrument when HBD Savings pays 20% APR?"; This is all about risk: probability of return. If we continue with the line of thought you mentioned, all Hive users are expected to sell their Hive Coins and invest in HBD Savings. Or more mathematically, we are expected to prefer methods that offer lower risk + higher return compared to HBD Savings. We do not see such behavior in most users. Because Hive price is extremely volatile compared to HBD. So is the price of Cent. Our perspectives on investment/investment instrument types are different from each other. Our risk perception is different from each other. Thank you again for your comment.
And cent is somehow not going to be volatile against the coins necessary to obtain it and convert to back from it to actually use for things?
I'm having a hard time understanding why I need these extra steps when hive/hbd are already capable of doing all the utility you mention, and even end up being how cent says it will pay its dividends. Why middleman? Why extra steps?
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