Is there a particular reason why the HBD Stabilizer is being supported by upvotes in addition to funding from the Hive Development Fund?
Is there a particular reason why the HBD Stabilizer is being supported by upvotes in addition to funding from the Hive Development Fund?
yes, to increase its effectiveness. When HBD was over one, it reduced the inflation rate enormously and converted it to future funding. It is doing a far better job than I predicted it would.
@smooth, I saw that. It did do a little to explain why, building up the war chest.
Read up some on the HBD Stabilizer. Sounds like a critical system especially for development on the blockchain. Now I'm not super smart, but since HBD was > 1, all the upvotes allowed the stabilizer to convert that HBD from the upvotes to HIVE which pushes HBD down and then the stabilizer is able to convert that HIVE back to HBD at the slightly lower price making profit for HDF. Upvoters are increasing the HDF which is going to lots of different proposals.
If this is true, than the complainers are not reading into what the stabilizer does. It's increasing the HDF to allow more development opportunities. As the comments say, they are looking only at layer 1 rewards. Layer 1 rewards are becoming an antiquated concept. The future of the social media functions are on layer 2.
I think I can see now... am I looking at this right?
That looks about right to me.
Summary: All of the rewards for @hbd.funder go to @hbdstabilizer and everything in @hbdstabilizer goes back to DHF to fund further projects (after being used to trade overpriced and underpriced HBD to generate an additional profit for DHF and exert a stabilizing influence on the HBD price).
Pretty much. It is after 4am and I am in bed, so will have a look more closely in the morning. If you look at @smooth 's blog you will see the details and conversation around it.
I just realized that this is essentially what blocktrades said, but I had to read about the HBD stabilizer to understand what he said. I can be dense haha
It is a good process to go through and as long as you end up building an image of the concept that works for you, all good :)
It is answered in @blocktrades comments within the referenced thread.
Thanks :)