Hi,
As you probably know there is a significant amount of hive in the dhf (decentralized hive fund): hiveblocks.com/@steem.dao, 83 millions hive to be precise. At the moment these tokens cannot be used by the dhf because payouts are only done in HBD.
If you don't remember why those tokens are here, it's because it's mostly the steemit ninja mined stake, which was ment to be used for the development of hive, so during the hard fork 23, the fork that birthed hive, those tokens were moved from the steemit accounts to the closest thing to it's original purpose aka the hdf.
Since hf24 is nearing completion, and the next one is in quite a bit, it makes sense to start converting that money to HBD in order for it to be usable, the code has been done by @netuoso and I a while ago : https://gitlab.syncad.com/hive/hive/-/merge_requests/2 Initially we wanted to have it ready by hf23 so it would start converting straight away and have funds ready to fuel development now that steemit inc isn't there anymore. But we felt it would be a change that's a bit too big and didn't want to rush it.
The big question
How fast should we convert that money ? We shouldn't convert all of it at once because the dhf allows you to withdraw 1% of its funds per day, which means that assuming a bad actor managed to get a proposal to payout, he could steal almost 200k in one day, we are far from spending 200k per day in development costs so there's no point in taking the risk.
If you are afraid of the economical implication with the hbd debt ratio, we will ship a change at the same time to make the hbd in the hdf not count towards it until it's paid out (which makes sense when you think about it, that money is locked up, it's not "debt" until it's actually usable by someone)
The idea is to slowly convert it in a way so that it reinforces the natural inflation of the fund without making it grow too quickly.
Some numbers to help you calculate
Currently the fund receives more or less 1752 additional hbd per day from the inflation
83 370 205 hive needs to be converted which equals to roughly 20 258 000 USD
I will assume that HBD = 1$ because it's easier
We convert on a per day basis, so every day a percentage of that money will be converted to HBD and made available.
For instance, if we were to convert all of it over a period of 5 years it would add
20258000/(365*5) = 11 100 HBD per day to the dao, which means 111 more per day that are available.
The thing is that this stacks up quite quickly:
after 100 days over 17k hbd are available per day, a decent amount if you ask me.
you are all free to play with the simulation spreadsheet I made here : https://docs.google.com/spreadsheets/d/1QTkPDPsjS5cUSMycHE7hPxtkCXJg54mNDLAyFNrbR_M/edit?usp=sharing
Some ideas
So the obvious answer you might think of would be "okay let's increase the time then", here's the thing, 5 years is a lifetime in crypto, so imagine more.
So the solution might be to decrease the 1% of available funds per day, but then some of the current people being paid out now might lose their funding because there isn't enough money available. Perhaps we could have a percentage based on how much is currently in the hdf like 1% if less than 1m hbd, 0.5% if more, and decrease as the fund grows ?
Should we allow people to be paid out in hive ? (not a fan of this one tbh)
I am open to suggestions, hence this post. So what do you think ?
Ps: If you think "Aren't we getting along just fine with the current amounts ?" We are overspending already. About 1752 HBD comes to the dao every day via the inflation, but we are spending ~2616 HBD per day.
You can see clearly in @penguinpablo's post: @penguinpablo/hive-dao-stats-thursday-july-2-2020
Daily budget (1% of all HBD available in the DAO):
Point is, we don't want to be in a position where we can't fund hive hive development even though we can because it's locked.