RE: What Is The Right HBD APR Policy?

3 mo
1 Min Read
225 words

It's really hard to project anything right now because the savings number is way too small. 4.4M is very tiny compared to the market cap of Hive so a 0.5% inflation annually shouldn't be worrisome for now IMO.

A lot could change in 365 days so I think the max projection we could potentially use for a "safety mechanism" is one year. I think Task has a correct view of the situation and even though it sounds like too much, 20% is like a tiny dividend Hive pays to those that invest in it.

Many projects will build HBD sinks, something I first saw with the upcoming game Ragnarok. If the savings amount stays the same and sinks start kicking in we may need to increase the APR even more due to the burns generated by the Hive economy.

But, all of that aside, I do agree that we need a formula for calculating APR at least. If 200% per year is fair then so be it. It will attract outsiders and slowly keep coming down. I would rather see a market-driven dynamic APR than what we have now but I'm also not an expert.

In summary, we still seem to be playing it safe here on Hive so at least there is no sense of urgency to solve this one.

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3 mo

Better safe then sorry they say :)
HBD is slowly improving as so does the liquidity, that is the main issue atm.