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RE: Burning Mechanism Can Save Hive From Continuous Dumping || HIVE at $0.04
My understanding is that the HBD stabiliser funds are a notional amount, used to swap between HBD and HIVE in order to try to keep HBD reasonably close to it's $1.00 peg (provided the Hive Debt Ratio is under 30%, but that's a separate issue).
The selling pressure is a combination of several factors - like all such things, there isn't a single simple answer.
The first is inflation, because we effectively print HIVE at will to pay author, curation and witness rewards.
The second is people extracting funds from the ecosystem; a mix of DHF funds used to pay for proposals other than the HBD stabiliser (some good, many bad, and most with no business case that explains the claimed benefit in financial terms), Hivers powering down and taking their HIVE onto exchanges to turn into cash, and witnesses pulling out their witness rewards in order to cover their server costs (and again, some don't, and some pull out far more than servers actually cost to run).
Finally, there's an overall feeling in the wider market that crypto-based investments have had their day, and that Hive isn't the exciting new thing it was a few years ago. Which is why I keep arguing that we need to be meeting real world needs using the blockchain but without actually making a point of saying it's crypto.
I completely agree with your last point. We should not look at the Hive ecosystem merely as a crypto project. Instead, we should bring it into real-world use and build solutions that address the needs of the world and understand what people actually need.
Just as in 2019–2020, #Splinterlands fulfilled the needs of gamers, and we saw a very positive result from it.
A content-writing platform is no longer as much of a necessity in this modern world. If we want to see #Hive grow, we need to go beyond that and build something more meaningful and useful.
We need to identify real-world problems, understand people's needs, and use Hive technology to provide practical solutions.