A witness perspective by @borniet/@botlord (yes, vote for me, don’t be shy)
Before we dive in, here’s the article that sparked this whole reflection:
https://ecency.com/dhf/@threespeak/how-to-reduce-hives-inflation-problem-our-new-dhf-proposal-voting-criteria-hbd-apr-and-a-proposed-value-plan-sop
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Look… Hive Is Incredible. But Let’s Be Adults For A Second.
I love Hive. I’ve been building on Hive, investing in Hive, curating, sweating, writing, breaking things, fixing things, delegating… everything. And like any long-term relationship, sometimes you need that brutally honest moment where you admit:
“Honey… we might have a small inflation issue.”
But — and this is an important distinction — not all inflation is the same.
Some inflation is perfectly healthy.
Some is market-driven.
And some is just the result of handing out funding to projects that are really good at asking but not always as good at delivering.
Let’s dissect this with honesty, humor, and hopefully at least a few brain cells left.
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The DHF: A Brilliant System That Needs A Serious Reset
I fully agree with ThreeSpeak on this point: the DHF has drifted away from its intended purpose. It should be a strategic funding engine for Hive’s growth. Instead, it often behaves like a generous subscription service with weak renewal requirements.
We’ve all seen proposals that:
• run far longer than needed,
• deliver inconsistent progress,
• lack actionable KPIs,
• or provide minimal reporting.
Meanwhile, builders who do create value sometimes struggle for support.
This isn’t malice. It’s simply a system with no guardrails.
So when ThreeSpeak proposes:
• short funding periods
• mandatory KPIs
• transparent milestones
• tighter budget discipline
• quarterly reporting
• automatic discontinuation without updates
That’s not centralization — that’s professionalizing the DHF.
And honestly, that’s long overdue.
I fully support tightening DHF governance. It’s good for Hive, good for investors, good for developers, and good for long-term economic stability.
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Now The Hot Debate: Should We Drop The HBD APR?
Ah yes… the part where emotions rise, and everyone suddenly becomes a monetary economist.
Let’s keep it simple and sane.
Is Hive experiencing inflation pressure?
Yes.
Is the 15 percent APR the main culprit?
No.
Should we slash the APR to 6 percent?
Absolutely not.
Here’s why:
1. APR Under 10 Percent Makes HBD Uncompetitive
If HBD yields drop below 10 percent, many users will simply move funds to better opportunities.
And what happens then?
They convert HBD into HIVE.
They sell that HIVE.
Selling pressure rises.
Hive price dips.
Debt ratio worsens.
We basically fix nothing and create new problems.
2. Most Of The Inflation Issue Is Actually A Price Issue
This is the truth no one likes to talk about:
Hive is currently undervalued because the entire crypto market is moving sideways.
If Hive returns to, say, $1 or $2, the so-called “inflation crisis” shrinks dramatically without a single parameter change.
The DHF cap becomes proportionally smaller.
The debt ratio stabilizes.
HBD minting pressure drops.
This is not a system meltdown — it’s a market cycle.
3. HBD APR Creates Less Harm Than DHF Spending
The yield from HBD savings is typically held, reinvested, or used internally.
DHF payouts, on the other hand, eventually move to exchanges.
If you want to reduce inflationary sell pressure, you don’t start by nerfing the least harmful mechanism.
You start by fixing the one with daily market impact.
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My Position As A Witness
You want clarity? Here it is.
Crystal clear, no hedging.
Fix the DHF now.
Adjust the HBD APR only if the debt ratio ever truly demands it — and not before.
I fully support:
✔ Stronger DHF accountability
✔ Shorter proposal cycles
✔ Hard KPIs and real reporting
✔ Funding based on delivered value, not tradition
✔ Financial discipline and transparency
✔ Making the DHF something the entire crypto world would admire
I do not support:
✘ Dropping the APR below 10 percent while the market is this low
✘ Making HBD unattractive compared to alternatives
✘ Triggering unnecessary selling pressure
✘ Creating a self-inflicted debt ratio problem
✘ Solving symptoms instead of root causes
Hive deserves strategic action, not panic reactions.
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A Balanced, Long-Term Solution
Here’s the approach that makes sense:
Fix DHF governance immediately.
This is where real long-term stability begins.Maintain HBD APR at or above 10 percent unless the debt ratio crosses danger thresholds.
Let the numbers guide us, not fear. My suggestion? 12%!Review APR in small, measured adjustments if needed.
No shock therapy.Build a culture of transparency and output-focused development.
Ensure the DHF funds legitimate, value-generating initiatives.
This path strengthens the economy, protects user incentives, and supports Hive’s long-term vision.
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Final Words
Hive is powerful. Hive is unique. Hive is resilient.
But Hive also deserves responsible stewardship.
If you want witnesses who think, who challenge assumptions, who don’t rubber-stamp proposals, who look beyond short-term noise, and who actually care about Hive’s future…
Vote for my witness: @botlord -> https://ecency.com/witnesses
Let’s build a Hive ecosystem that is disciplined, sustainable, and prepared for the next bull cycle — without shooting ourselves in the foot along the way.
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📸 about my images
All photos are my own, shot on my iPhone and sometimes edited in Lightroom.
AI images? Those are created by me too, using my own prompts.
Explore more: Borniet On Hive
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