This is a masterpiece and needs a well applause. This is actually my first time of hearing and seeing this calculations and the realities of the HBD.
For example, if the debt is at 11%, the HBD price from the blockchain will be at 10/11 = 0.909. If the debt is at 20%, the HBD price from the blockchain will be 10/20 = 0.5.
This facts probably means that a time will come (if nothing is done to clear the debt) when the HBD might not have significant values. I need ask this question, is there anything that can be done to either watch the debt level or clear the debt?
I think that once there's enough hive in the blockchain, the debt will not rise above the 10% benchmark.
Thanks for the enlightenment, it's worth publishing.
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Tnx!
The debt need to be controlled, otherwise it is a great mechanic for creating a stablecoin.
Debt is reduced either by increasing the HIVE price, or by destroying/converting HBD to HIVE.
In a month or two the debt limit will be 30% so there will be enough safe zone.