Hey all,
I think my latest post became one of the most commented posts I've ever shared on the chain. Thank you all for your inputs.
First of all, I'd like to address a few things I read throughout the day.
Witnesses bad! They coordinate following one guy creating centralization!
Not really, that's not the case. I first put forward my motion about 4 months ago. It has been probably discussed a million times since then and even before.
HBD interest doesn't affect inflation
Remember, HBD Interest is completely separated from Hive inflation. So things like posting rewards, curation rewards, DHF, passive Hive Power inflation, witness rewards etc. All come from a pre-determined (at chain start) inflation rate that is decreasing over time. However, HBD Interest is printed out of thin air.
When we first increased HBD APR to 20% (with a staggered increase) we were thinking of competing with LUNA, who offered similar rates for USDT/C we all probably know what happened to LUNA, but that's a topic for another day. On top of that, BTC was quite high, Hive was close or over >$1 so we were golden! Lets take this opportunity.
However, now it is not like that. The market has gone down significantly since then with Hive, as of now, being traded at about $0.29 per HIVE. Does this mean we cannot afford 20% APR? If we had our old debt ceiling, probably. But not now since the debt ceiling has been increased a while back. But please don't forget that for every HBD there has to be HIVE in the background "backing it" since HBD is "Hive-backed Dollar" after all.
But reading your comments, I believe it is nice people gathered around to share their ideas, feedback and potential future suggestions. We can always find more uses for Hive and HBD both on-chain and off-chain (or side-chains). Time to go back to drawing board with more ideas :)
Lower HBD interest but increase posting rewards
That is not possible due to the explanation above.
Side note: Posting rewards
As I mentioned in my previous post, about reducing posting rewards, that is NOT consensus. It is an idea a few witnesses were mulling about with nothing being set in stone, nothing is being changed and further discussion is of course needed. While it is easy to change HBD APR with just a few parameters, any major change such as posting rewards would require a hard fork, which necessitates supermajority approval in the first place.
So why did you change your HBD APR?
I have increased my HBD APR from 12% to 15%, I believe it is a nice middle ground to wait on until we have filled our drawing board a bit more.
Thanks, I've written enough for this month, see you on my next development update or the next controversial post :)