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RE: 20% APR For Hive Dollars | Decentralization In Action

in LeoFinance3 years ago

It comes from the growth of the network. Just like any other rewards/payments Hive distributes.

It is really a bet on the growth of the network. It can only success with growth. Interesting thing is interest payments on hbd may boost the growth of the network in circular positive feedback loop.

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Hey @geekgirl , Did you make a blog post that explains where the premium comes from in more detail? or maybe somebody else did? I'd like to try to understand this better and would appreciate whatever help you can provide.

I don’t believe so. HBD interests are newly created coins. I am not sure if the are part of overall pre-determined Hive inflation.

I think @dalz had some interesting posts with more details on the topic.