RE: RE: Hive Haircut Rule: Will It Ever Need To Be Changed?
You are correct on the math that a huge drop in price will cause the ratio to drop. When that happens, the creation of HBD stops along with conversions. The point was that more creation doesnt continue unabated like with UST/Luna.
Conversion of HBD would help to eat it up, lowering the market cap and ratio.
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