The haircut goes into effect when the USD value of HBD reaches 10% of the USD value of HIVE. These are total market caps.

We will see this raised the next hard fork to 30%. The only thing the interest does is generate more HBD. If the price of HIVE stays the same, we have plenty of room. The problem could be if the price of HIVE drops, a great deal. If that happens, the HBD is not printed so 50/50 payouts will be in liquid HIVE until the ratio is restored.

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