I don't really agree this is significant. If you're paying 1.20 or 1.50 to buy 1 HBD, you're betting 20-50 cents (at risk if it goes back to 1.00) that it will go higher even. This usually happens in days, weeks or perhaps months. 3% per year is hardly much of a factor in that calculus.
I was in favor of the 3% (and I posted about it). The idea is not to try to turn on a dime. Yes it is above $1 now but there have been plenty of times (including a few weeks ago) when it was $1 or lower. Paying 3% at least gives people some reason to hold it when it is $1, which mostly doesn't exist otherwise. Keeping the interest set even when it isn't strictly needed helps create awareness that it even exists (case in point: you just noticed).
I do agree that if it were to stay above $1 consistently for an extended period of time then the interest should not be paid as it is just a (small) waste of money, but for relatively short term market fluctuations I don't think it needs to be constantly changed.
Depends on how much is the interest. In the crypto world 3% is nothing. It only serves to increase supply.
I don't really agree this is significant. If you're paying 1.20 or 1.50 to buy 1 HBD, you're betting 20-50 cents (at risk if it goes back to 1.00) that it will go higher even. This usually happens in days, weeks or perhaps months. 3% per year is hardly much of a factor in that calculus.
I was in favor of the 3% (and I posted about it). The idea is not to try to turn on a dime. Yes it is above $1 now but there have been plenty of times (including a few weeks ago) when it was $1 or lower. Paying 3% at least gives people some reason to hold it when it is $1, which mostly doesn't exist otherwise. Keeping the interest set even when it isn't strictly needed helps create awareness that it even exists (case in point: you just noticed).
I do agree that if it were to stay above $1 consistently for an extended period of time then the interest should not be paid as it is just a (small) waste of money, but for relatively short term market fluctuations I don't think it needs to be constantly changed.