I just want to remind everyone that has an opinion on the HBD APR reduction, coming from some witnesses, to vote with their wallets and make their voice heard.
Ive listened into the CTT podcast last night. It was a shame I wasnt able to speak considering I was raising my hand for about an hour.lol.
Some information presented during the show from some guests was unsubstantiated and in my opinion simply reflective of fear induced reactive behavior.
- Claim that high APR didnt attract any new investors is not backed up by anything and is made too easily. If you look at Dalz stats you see a consistent increase of HBD in savings from 1 million to 8 million and increase in accounts putting HBD in savings from hundreds to 14 thousand. The HBD APR of 20% didnt make the amount of HBD in savings 8x in 2 years.
That HBD came from somewhere and for sure it didnt come from people selling their HP. You can check that easily, as well, looking at the Arcange stats tracking HP. No significant drop in HP and a consistent increase over time is seen.
Did it all come from Hive users? If you want to claim that, id ask you why is the increase consistent over time. Hive users for sure would be aware of the high APR a long time ago.
The conclusion that HBD isnt bringing people in is not valid in any way whatsoever.
- There is a claim that there is no risk associated with holding HBD in savings. This clearly is representative of what I would call "APR envy". It is not a coincidence that the drop in APR was proposed after this latest dump in the market.
Some HP holders saw HBD holders not suffering and were not happy with it.
Starting making claims:
Well, there is no risk associated with HBD, its 0 effort, etc.
What is the opportunity cost of holding HBD? What happens if Hive goes to 1 USD and youre invested in HBD? A product with 0 upside. No risk you say? Well, maybe 0 risk for those in this market looking for 20% a year. And thats a grand total of probably 0 people.
Its at that point when some of those complaining about high HBD APR would give 20%, 30% even.
When markets go down, when prices fall, you want to still keep that capital inside Hive. HBD helps with that, high APR (sustainable) helps even more.
When prices go up high APR is just a marketing tool. Nothing else.
So yeah, people got this completely ass backwards.
20% right now doesnt seem unsustainable and it very much seems to have attracted users. No valid claim otherwise can be made unless someone presents me some data I havent seen yet.
The only valid objection Ive seen is that 20% APR is seen as a scam. And that very much might be true.
Which is why I will accept the APR being dropped to 19.9% APR.
Stay cool. 😉