I think the witnesses will find it hard to reduce the interest rate.

Reducing the interest rate in a year would result in a massive outflow of HBD and HIVE that the market would find difficult to absorb. Remember, Hive guarantees HBD at $1 minus a 5% fee.

Lowering the interest would lead to a massive flight of HBD from the platform. The price of HBD would fall below $0.95 and people would start converting their HBD into HIVE.

So, lets say the price of HIVE was trading at $0.50. A conversion of a million HBD would create 2 million HIVE that HBD investors would want to dump on the market.

The witnesses are locked in. They have to keep the interest high to avoid the flight of HBD.

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