RE: Request for comments: HBD stabilization DHF proposal

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RE: Request for comments: HBD stabilization DHF proposal

ats-david in #hbd • 5 years ago

I would love to have HBD interest and have witnesses actually using their parameters again. That's something I've called for many times in the past to no avail. And then I realized that many of our witnesses aren't that versed in economics/finance anyway, so it might be better that they didn't use the parameters. (That's also one of the reasons why I have continually called for new/better witnesses to fill the most important slots.)

In the past, one of the arguments made for not paying interest was that exchanges were the largest holders of tokens and the rewards would be going to them. But many exchanges now have the ability to stake with them, especially with DeFi tokens, so in my opinion, this is something that could encourage more holding and spark new/more interest in HBDs and the Hive chain.

Why not give it a shot?

5 years ago in #hbd by ats-david

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smooth 5 years ago

One problem with interest would be the potential overvaluation, so...

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antisocialist 5 years ago

What do you think about interest on savings accounts?
Maybe bring some of that hive back from the exchanges and lock it for 3 days?

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svamiva 5 years ago

Interest on 'almost liquid' funds (3 days lock) is not something my bank would offer me.
The alternative might be to introduce the option 'to stake' HBD in the same manner we stake Hive ( for 3 month)
Both 'staked Hive' and 'staked HBD' should be taken into account for calculating 'vesting shares' then.

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antisocialist 5 years ago

I think your bank would call it a cd, and require a longer lock.

Interest on locked liquid hive brings the hive back from the exchanges, gets diluted a little less, and still rewards authors by inflating the inflation.

HBD was designed to be a currency, not a store of value, though it does that, too.
It primarily gives us a way of avoiding 10k hive pizzas being worth 350m usd at some point in the future.
Hold your hive, spend your hbd.

What benefit does staking hbd give the chain?

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svamiva 5 years ago (edited)

HBD is 'Hive But Disguised', there's no reason to give any special preference to the Hive holders over the HBD holders.
Let's say Alice spent $100 to buy 1000 Hive and Bob spent $100 to buy 100 HBD.
I can't see why Alice should have more 'rights' than Bob.

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antisocialist 5 years ago

I'd go for the witnesses to pay interest on hbd when it is below the peg, but getting those folks to do things from outside their own worldviews is like pulling teeth.

I'm not sure that paying interest on debt outside the witness parameter is a good thing.
We'll have to consult a better mathematician than me.

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smooth 5 years ago (edited)

When people stake, even for 3 days, it takes those coins off the market. They can't be sold even if the price were to increase above $1. That removal from the volume of potential sellers should tend to increase the price a bit more than paying the same rate interest on fully-liquid HDB.
Since some people do want fully-liquid HDB, they would not receive interest and the total cost of interest would be lower and/or the rate of interest higher for those who do get it.

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antisocialist 5 years ago

I just hope we can get some movement here, it's been several calendar years that we have been waiting.

We've been having these conversations since hf16.

At this point, any forward movement gets me excited.

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